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The AP would love to cry wolf and say that because new home starts are down, that we are headed for another catastrophic downturn. I am not saying this is a certain untruth, but it is not necessarily accurate. Every fall the housing starts go down and as any real estate professional can tell you, from Halloween to New Years is almost a mandatory vacation.

The government has done what they do to stimulate the housing market, which was first to establish a home buyer tax credit, then to extend it to continue to stimulate the housing market. This did lift the housing market out of the slide it was in and actually allowed for seven percent appreciation across the nation.

With the federal lending corporations Fanny Mae and Freddy Mac reclassifying much of the nation as “appreciating” markets this fall, new lending avenues will open up to home buyers. What this does it allows Primary Mortgage Insurance for lenders, so they will now lend up to one hundred percent loan to value financing again. Prior to this change they were only lending at ninety percent loan to value meaning that buyers would have to come up with ten percent from their own sources.

Although this is an unpopular practice in most circles, this will help the real estate market. Many people think we should return to the school of thought that says you save your money until you can put 20% down, and I agree with that. But, with the government declaring that the American Dream is not just for those who have the discipline and means to save, but to everyone, we have the position we are in now.

Until we get rid of the policies that force banks to use funny money principles that say it is ok to lend to unworthy recipients, do not be surprised to see home starts back up early next spring, and see a quick recover that may come as early as the summer of 2010.

Without stability in the housing market many out of work construction workers will simply not be able to find work, even in the short term.

The author enjoys writing articles on boise real estate & homes for sale in boise idaho. For more information click on the links above! Visit the Uber Article Directory to get a totally unique version of this article for reprint.

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