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This is my two cents so here goes…

1. Gay people bring up real estate value (and this conservative Roman Catholic lady who happens to be a real estate agent agrees) - Cities that are heavily affected by the real estate market correction need to start importing gay people b/c quite frankly they dress good, buy nice stuff (incl. big ass luxury homes), and are role model citizens. Ok, this probably a strereotype, but I wouldn’t having this stereotype.

2. Invite foreign buyers - There is lack of moolah in the system. So let people with moolah BUY them, even if they happen to be foreigners. I’m not the only advocate of this concept. The real estate market is tanking because there are lack of buyers, not because of lack of American buyers. Let the foreign buyers absorb the surplus. Don’t bring up “patriotism” or “nationalism” into this subject. The biggest “patriot” won’t give a damn about it if his house tanks another 25-50% in market value. I guarantee he’ll be the biggest advocate of immigration when he sees foreigners stabiliing his biggest nest egg.

3. Lower debt to income ratio - The traditional mortgage guidelines, i would argue, fueled the explosion of subprime, alt-A mortgages. I definitely see the logic behind having a maximum debt-to-income ratio as far as approving loans, but the average median income in US is just about $30k… which means there’s a BIG chunk of the population that cannot afford loans that’ll cover the cost of an average home in US. How does Uncle Sam expect to encourage home ownership when that stupid debt-to-income ratio is so low? I would say.. RAISE the damn ratio. What the gov’t doesn’t realize is that most people would rather pay the mortgage and live cheaply than to go homeless but live lavishly. Fear of homelessness, oddly enough, is a good motivation for people to not foreclose.

4. Make flipping primary residence houses ultra-painful - Set real estate taxes for capital gains (for any profit realized within, say, 5 years on a primary residence) to 100% (unless they moved the profits up to a bigger place). Yeap. This is an un-capitalist statement, but heck, better safe than sorry. Besides, most people bought homes beyond their means because they thought they could flip it in a few years. 

5. Let people burn for their mistakes - Not gonna say anymore about this, but people need to pay for their mistakes. No government bailout and no lame excuses. The faster that the market can correct itself, the faster that it can recover. Don’t believe me? Buy liquor to a recovering alcoholic and see how much loner he stays in rehab.

My 2 cents.

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