A healthy housing market requires a balance between supply and demand.
There are numerous factors like the default and foreclosure pipeline
boosting supply well in excess of demand -- at current price points.
Almost all government intervention to date (save for the short-term tax
credit for home purchases in the spring of 2010) has focused on
suppressing supply, when it should be far easier and cheaper to focus on
boosting demand. The easiest way to get more demand from the
marketplace is perhaps the simplest: remove all price supports and
government interventions to allow prices to fall to a natural point
where demand picks up naturally and buyers are no longer justifiably
worried that future price losses will wipe away any new equity
investment they make.................. Financial Advisory Services
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