Orlando Real Estate

Letter to the President

February 20th, 2009 8:03 AM by David W. Welch

I submitted the following on www.whitehouse.gov through the office of public liason.

I would really like to see two things from the President. First, I feel he needs a plan to address the significant over supply of residential real estate for sale. The National Association of Realtors typically states that a six month supply of homes is a balanced market. Based upon that average there should probably be about one million fewer homes on the market than there are currently. Coincidentally, or maybe not, there are about one million foreclosures. My recommendation would be for the stimulus to put an emphasis on buying up the excess inventory of foreclosures, holding and maintaining them as needed until the market begins to improve and can absorb them. This addresses the economy on a number of different levels, but specifically targets the very core of the problems we face as a nation today. I estimate the cost of acquisition and holding costs to be in the $300 billion range. Second, and maybe even more importantly, the President and his cabinet have got to stop the negative talk. Things may not be good right now, but continuing to say that "conditions will get worse before they get better" is the wrong message. I know he is probably hedging his bets, but this type of rhetoric is a self fulfilling prophesy. I am not suggesting that he come out and say "mission accomplished". We know what that did for his predecessor. I would just like to hear more confident language. Attitude and confidence - including consumer confidence - starts at the top.

Personally, I believe if the President addresses these two issues we will see a monumental turnaround. Just to be clear, I did not vote for Mr. Obama, but I do pray for him pretty regularly and wish him to be successful. In fact, I am counting on him being successful. I will publish this note on my blog too.

www.RealEstateOptimist.com

Posted in:General
Posted by David W. Welch on February 20th, 2009 8:03 AM

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