The Housing Market

March 30, 2011.

The Housing Market
By T.S. Khanna, March 30, 2011.

Despite the economic recovery in some areas, the housing market still remains on life support. Not too long ago, people stood in lines to buy homes. Now they ignore the opportunities for great bargains. They seem to be losing confidence in solid home values. A catch 22 keeps dropping the home values.

Moreover, there is a genuine grievance from the senior citizens that, with reduced income and higher medicine costs, they cannot afford to live in their own paid up homes, due to the property tax. Property tax on personal home is an economic choker to most homeowners.

Personal home is the best asset and the pride of average American family. It must be restored. Progressive economy depends heavily on applied psychology. By reversing the catch 22 cycles, we can restore the pride, confidence, and solid value for the homebuyers.

Recommendations:
• Suspend property tax on all personal homes for a period of five years;
• Suspend personal home mortgage deduction for five years. The gains in revenue should make up the loss of revenue in suspended property tax on personal homes;
• Require at least 25% down payment from the buyers to avoid economic bubbles.