So Now What?

Today is the big day, finally. Washington, DC is filled with hordes of people. And a new president takes the oath of office today. I think he's got his hands full!

But once all the pomp and circumstance is over today; once all the tourists go home, what can we expect from this new administration with regards to the real estate market?

First of all, the President-elect's team has given every indication that they intend to intervene in the real estate market and will do so aggressively. So I expect quick, decisive action on this front. What kinds of things will we see?

• A plan to get the bad assets off the banks books. This now looks likely to happen in the form of a government-created, government-owned "bad" bank.
• A strong push and some serious arm twisting to get banks to begin lending again once those assets are off their books.
• A commitment to spend at least $50 billion in TARP funds on the real estate recovery.
• Additional tax credits for first time home buyers in an effort to stimulate demand.
• Additional efforts to stem the tide of foreclosures. This may take the form of:

Buying up second mortgages.

Strengthening the existing government programs to modify mortgages.

Allowing all bankruptcy judges to modify existing mortgages.

Temporary foreclosure moratorium.

And, the list is probably longer and growing.

What encourages me is the firm commitment to getting this done, to getting the real estate market stabilized, one way or another. If a real commitment is half the battle in any endeavor, you have to feel good about the future.

So, yes, I'm encouraged. I think we'll see some things happening in the next few weeks that could make a difference. I'm rooting for the new administration and I know I'm not alone.

I know they're going to keep trying until they get it done. I believe that attitude will make a difference.

Call me hopeful!