Freddie Mac Falls After Seeking $10.6 Billion From Treasury

Ouch.  So much contradicting news out there.  You have two sides of the fence.  One stating the housing market is improving and then the other who claim it’s not over yet. It will be even more confusing this month when the housing numbers for April come out.  There will be a BIG surge with the housing numbers and everyone will think “Glory Days Are Hear Again.”  I’ll call this “Hope Over Reality.” 

Truly, what the government incentive program has done is caused anyone who was going to purchasing a home in 2010 to up their purchase to an earlier time to be able receive the financial benefit.  No one or financial prop is going to make someone wake up and say…let’s buy a home.  This decision is made because of a life changing situation, period.  The housing market is what it is and until the inventory is a balanced point…somewhere between 4-6 months the housing market will continue to experience the challenges and unfortunately, adjustments in prices.  It is basic economics of supply and demand.

Nationwide there is a 16-24 month supply of housing inventory including residential resales, new and bank owned properties.  With a forecast that housing values will decline another 10-15% nationwide in 2010. 

What this all means to the homeowner who is thinking about selling is be smart and price your home so that it will be one of the few which a home buyer will buy.  What’s the old saying…”information is power or is it…the correct use of information is POWER.” 

Freddie Mac Falls After Seeking $10.6 Billion From Treasury – Bloomberg.com
Freddie Mac, the mortgage company operating under U.S. conservatorship, fell 8 percent in New York trading after requesting $10.6 billion more in Treasury Department aid while reporting a first-quarter loss.
http://www.bloomberg.com/apps/news?pid=email_en&sid=a7ta2rY7BkYI