With the current need for jobs in this country and the massive backlog of homes on the market I have come up with a simple plan that should work. Please take a few minutes to review this plan and please take the steps necessary to make it happen.
Economics 101 tells you that supply vs. demand will dictate the price for a product. So with the current supply of foreclosed homes on the market we know that the price of these homes will be lower than they would be if the demand was better. So the question is how to fix this. Here is my plan that I believe will work.
Take all GSE foreclosed homes off the market. This will slow down the decline in home prices instantly. If someone wants to buy a home they will buy from a person not a GSE and this will allow the seller the needed capital to go and by from someone else. This will start the ball rolling again. Current system is customer buys from GSE but this is a one and done deal. We need customer to buy from customer so they can buy from customer etc…
Stop all building permits for new homes until the local market does not have an over supply of homes for sale. (6 months worth). Now we do not want the builders to go without jobs so this is where the jobs plan comes into play.
Hire all the builders to go into all the GSE foreclosures that are sitting on the sidelines and have them retro fit these homes. Make these homes the most energy efficient homes in the world. Give them solar panels, windows, insulation, HAVC, hot water heaters etc.
This will keep the builders employed and will also generate jobs for the private sector as well. If the private sector knows that the US government is going to buy 1.5 million widgets then they will need to hire to be able to build and ship these items to all of these GSE homes.
Now as the supply of local homes reaches a normal level based off the new jobs created and fewer homes on the market slowly add these GSE homes back onto the market. You will now be able to get fair market value based on a stronger economy and this will help repay the cost that was spent to retro fit these homes in the first place.
By having these items built in America it will bring the price of these items down for everyone and will help with our goals to lower our need for oil..
WIN WIN for USA.