Saturday, May 23, 2009

The Housing Market Solution: Creative Destruction

Politicians want SOOO badly to be relevant when, ironically, their greatest contribution is irrelevance. If they will simply leave the decision making up to the citizens we would ALL be freer and more prosperous and happier...but alas they just can't stand being irrelevant.

Phil Bredesen says HE creates jobs....not true. Michael Bloomberg jumps in front of any PR parade he can find to claim he is solving the citizen's problems...not really.

Their self-righteous fervor is so cute and so unnecessary.

The housing market in Phoenix is re-creating itself throught the efforts of sovereign citizens making self directed decisions about their own welfare without anyone "directing" them...its a miracle? Nope, it freedom.

With this sweltering desert city enduring one of the largest tumbles in housing prices for any urban area since the Depression, there is an unrelenting stream of foreclosures to choose from. On some days, hundreds are offered for sale at the auctions that take place on the plaza in front of the county courthouse.

There is also a large supply of foreclosed families who can no longer qualify for a loan. And that is prompting a flood of investors like Mr. Jarvis, who wants to turn as many of these people as possible into rent-paying tenants in the houses they used to own.

Real estate got just about everyone into trouble in Phoenix, and the thinking seems to be that real estate is going to get everyone out.

The low end of the real estate market here — and in some equally hard-hit places like inland California and coastal Florida — is becoming as wild as anything during the boom.

One real estate agent was showing a foreclosed house to a prospective client when a passer-by saw the open door, came in and snapped up the property. Another agent says she was having the lock changed on a bank-owned home when a man happened by, found out from the locksmith that it was available, and immediately bought it. Bidding wars are routine.