Law professor Todd Zywicki of George Mason University was featured in Forbes on Friday in an article by Peter Robinson. He makes a case for letting the housing market clear:
"Assistance for the relatively small number of people who are facing really tragic circumstances makes sense," Zywicki says, "but if the administration tries to push overall housing prices back up, it will only be asking for trouble."Zywicki says regions like ours aren't King-Learish:
"The second type of market, which appears in New York, Boston, San Francisco and Washington, D.C., demonstrates a long history of price volatility. 'The housing stock in these markets is constrained,' Zywicki says, 'either by geography--San Francisco is surrounded on three sides by water, for example--or land use controls.' When demand in such a market increases, prices soar. And when demand weakens, prices plummet.Just aggravation on all sides.
'But the people who live in these markets expect big price swings,' Zywicki says. 'They've learned to live with them. They're holding onto their homes because they're confident prices will eventually recover. Again, there hasn't been any tragedy.'"