The real estate market is recovering slowly nationwide, with pockets seeing actual appreciation. While I am very optimistic about the next few years, I would like to see a few things happen to expedite the recovery. First, banks need to clear all foreclosure inventory, including speeding up the process on pending foreclosures. Values may drop a little briefly, but in the long run, our recovery will be much faster. Second, banks need to modify those loans that can be saved. Interest rates are at their lowest level in our history, and many homeowners could stay in their homes with a modified loan. This will not only reduce the number of foreclosures, but also lead to a rise in consumer confidence. Finally, we need higher LTV loans made available to buyers for owner-occupied homes. There are literally millions of buyers who would buy now if the loan programs were available. Even if the programs were available for a limited time, it would shore up the industry.
I am interested in what you think. Please comment.