Jim Gillespie, president and CEO of Coldwell Banker Real Estate LLC, participated in CNBC’s “Roadmap to Rebound” segment which focused on the state of the housing market, and what real estate professionals believe should happen to get the market moving again.
To watch, click on this link to CNBC.
Gillespie stated that “the government could do a lot more than they are already doing in order to get the real estate market moving again.” He believes that two key changes are needed in order to get the economy moving:
1) to set a fixed-rate mortgage. Gillespie feels that “Lowering the interest rate to 4% to 4.5% for 12 months is one way to get the inventory moving.”
2) increasing the tax credit to $15,000. He feels ncluding all buyers of primary residences will help move buyers along and get the market to shift.
Gillespie also stated that the demand side needs to be addressed. Once we start to sell the inventory currently available, prices will stabilize and then go up again, which will also help those in distressed situations. “Fifty-five percent of loan modifications have failed after six months because jobs are not being created and homeowners are losing the jobs they have,” says Gillespie. “In order to create jobs, we need to create demand, both of which will get the housing market and economy moving.”
Contact your Coldwell Banker real estate specialist to discuss your options as buyer or seller.
(Source: RIS Media)