The government should stop trying to artificially goose new home sales because that will just prolong the housing problem. There are too many homes on most local markets right now and building new homes will increase supply and depress home prices. Prices in the local markets have to decline enough to entice buyers to buy homes. Homeowners underwater — their mortgage is more than the price of their home — will be hurt even more by more home building.
%d bloggers like this: