Nevada continues to top the foreclosure tables, even as the national economy recovers. Various types of rescue plans have been tried but they have not done much to change the way the real estate market operates. But the economist for the National Association of Realtors has remained upbeat. He'll be speaking Tuesday at the Las Vegas Perspective and joins us ahead of that event.
Lawrence Yun, Chief Economist, National Association of Realtors
If the market is so great, as Mr. Yun says, why does he think that the banks won't give mortgages with their piles of money? They know that even current prices have been made artificially high by government policy. All the money of the government and all the hype of the realtors will raise the price of real estate temporarily at best. It will not put Humpty Dumpty back together.
Only a huge increase in national production and the creation of tens of millions of jobs will permanently raise the price of real estate. The solution in Las Vegas is easy: Just allow the Chinese visa waiver status. They will fill the hotels, making it necessary to build more, while they spend $5-50 billion per year on gaming and shopping alone. Even the "smaller" figure will restore all the jobs lost during the "recession".
Until people start talking about allowing foreigners green cards for buying houses and getting college degrees in the US, or cutting in half the 40% rake that government takes of the national product, or eliminating the minimum wage, etc. can this economy recover nationally.ed uehling –Mar 26, 2012 10:34:43 AM
You should be aware that Mr. Yun has a vested interest in projecting higher prices of real estate. It might be wise to keep in mind that current prices exist IN SPITE OF a trillion dollar effort by the federal government to fix the value of houses and mortgages. This takes the form of government guaranteed mortgages, low down payments, etc. This is not sustainable--the government can price fix effectively very little (I can't think of anything, actually), but certainly not the value of every house in the nation. Either the price will drop when the supports are removed or the nation will bankrupt itself.ed uehling –Mar 26, 2012 10:15:27 AM