December 2008 Real Estate update...summer rentals are being renewed, at less than last years' rates. Inventory has increased, but there are buyers on the sidelines that are planning to rent ...as we still live in paradise. The buyers' consensus is that they are waiting for market guidance on a few fronts...will the prices come down here like they have in other parts of the country...? and just as important, will the bailout have programs that actually reach the marketplace?
 
I published two plans specifically focused on the real estate market, with the latest by Barron's out since Sunday that calls for the government to sponsor a 4.5% mortgage rate for current homeowners and new buyers...across the board. It could be effected quickly through the disabled and nationalized Fannie and Freddie. What it would address that no other plan has, is help the people that are up to date on their mortgages, and are feeling the pinch anyway. There can be no plan that helps just a portion of the market without side effects. Imagine being up to date through struggles, and your neighbor gets a hand because they couldn't keep up...or just gave up?
 
I sincerely believe this would also inspire enough real estate buyers on the sidelines to venture forth a little more...and it would also stem the pending foreclosures, and allow some people to withdraw some of the excess inventory from the market. If there is a program that would effectively calm the mood, if not put in a bottom that we can work on, then it should happen now, or in the first 100 days of Obama's presidency.
 
It would also start up the economy machine and get money flowing...which could stem the pending deep resession. I've been wrong before, but this would work...like no other game in town.