It’s Wait And See for the Duplex Market

said on September 19th, 2008 categorized under: Twin Cities Real Est

The Alternative

The Alternative

I’m neither an economist nor a psychic. As a result, I can’t tell you what I think this morning’s proposed government intervention in the nation’s financial crisis will mean to the real estate market.

In its coverage, the media is making a lot of references to historical entities like the Resolution Trust Corporation (RTC) of the late 1980’s, and the Great Depression entity, the Home Owner’s Loan Corporation (HOLC).
Both organizations were created by the Federal Government in response to banking crisis’ in the financial and real estate mortgage markets. The former bailed out failed savings and loans which had failed largely due to risky real estate lending. The latter focused on renegotiating home loans to prevent foreclosure.
 
I suspect whatever entity Congress creates over the weekend will be some hybrid of the two. And ultimately, we will pay for it in the form of higher taxes. Not happy news, but certainly better than the alternative.
 
We’ll see what the weekend brings.