1st Time Home Buyers can save the Economy

Real Estate Market CPR - From the Wikipedia Dictionary "Cardiopulmonary resuscitation (CPR) is an emergency medical procedure for a victim of cardiac arrest". My assessment is that the United States Economy is in a state of cardiac arrest . . . and the patient is not showing many signs of improvement even as the government continues to throw money at the problem. Band Aids and neosporin are NOT going to resucitate this economy any more than Bail-outs and government loans and increases in "oversight" and regulations.

What is clear is that there is a LOT of pain out there. People are scared . . . Scared of "tanking" values on Wall Street . . . Businesses - BIG BUSINESSES failing at an astonishing rate . . . Daily news of thousands of people losing jobs . . .

And the primary media sources are doing everything in their power to propagate the "Doom and Gloom" so as to be able to continue to sell news (and ads) to the general public . . . More fear yields more traction for this kind of irresponsible reporting.

and the cycle continues . . . and the idiots in charge seem to have forgotten the definition of insanity . . . continuing to do the same things and expecting different results.

This lens suggests an earth shattering, mindblowing solution-oriented idea of epic proportions:

1st time Home Buyers could very well save the economy!

and here's why . . .

There are LOTS of them out there

Many of them are young and in great jobs - Their recently educated brains and unflappable dispositions are giving them opportunities to replace the "old hats" in many corporations.

Many of these folks are already SAVING money (imagine that) and/or have down-payment money available from Parents

RATES ARE GREAT! (under 5% with great credit - WOW!)

LOTS of choices - Look at the veritable smorgasbord of available homes in the market.

These energetic people are excited about the possibility of "getting a great deal"

They are very "viral" . . . When a 1st time Buyer closes on a home, the whole PLANET hears about it.

In my market, they can mortgage up to $417,000 (jumbo limit)

$7,500 Federal tax Credit

Many 100% options still available in many markets for those with great credit

and here's why they are so pivotal & powerful as market accelerators ...

The market is flooded with inventory (obviously)

Sellers are having difficulties selling their houses and therefore are not able to purchase their next home. The first time home Buyers hold the keys to breaking this log-jam of inventory. First time Buyers don't have the albatross of needing to sell a house in order to buy a house . . . They can buy TODAY . . . and when they buy, the inventory reduces exponentially because:

First time Buyer buys . . . The seller of that house can then buy . . . and the seller of THAT house can now buy and so on and so on.

The day comes when the inventories reduce to the point that home-ownership affordability begins to make sense . . . and builders start BUILDING again . . . Suddenly, new JOBS start showing up as the ancillary industries begin to spool up operations to support the needs of the builders.

and other useful things happen . . . This "down-turn" is enough of a pattern interrupt that the new construction houses will likely be more environmentally friendly "Green" construction and materials.

Right now, the chain is broken at the source.

1st time Buyers are CRITICALLY important people.

Get these folks BUYING, and the market will improve . . .

PERIOD!

The sole purpose of this lens is to save the Economy . . .

and the simple truth is that I believe this can be accomplished with no further guidance of oversight from ANY governmental agency . . . all we need is a veritable army of REALTORS and Mortgage Lenders to come together around the idea that we must educate these first time home Buyers and get them buying NOW . . . before the market shifts past the "bottom" and prices start rising.