I thought it might be higher than 22%. I really hope the government just let's homes fail. They'll be better off in the long run. If homes prices come down to affordable levels with wages then people have MORE money to use for consuming rather than throwing 50-60% of their paychecks into an asset with decreasing value.

A link to a good article.

http://seekingalpha.com/article/222830-the-answer-to-a-housing-recovery-lower-prices

Now Obummer is floating another $8000 credit for first time home buyers.

The floating of this idea is HOLDING others back waiting to see if they will qualify for the credit. Meanwhile anxious sellers are sitting and waiting as well.

Until there is some semblance of consistent policy in the tax code and the housing market, it will to continue to stagnate due to the policies of this man who calls himself President.

House values were run up under the biggest ponzi scheme ever played on the people. Mr. president, what do you intend to do?

"Keep them inflated thru more market manipulation so, no one can afford them."

That's some great leadership right there.

So now Obama is responsible for the housing market crash. I guess next you'll blame him for causing global warming.

I really do not get it. If you bought your home to live in and you can make your payments... what does it matter if you are under water today? If you can not afford the payments.. try to work something out.. and if you can't .. hand the keys to the lender. If you bought the home for an investment.... tough...hand the keys over and move on. What would happen if automoble owners decided they did not want to make their payments because they were underwater? What does it matter? do you want or need the car (house) or not?

@Jaded- Re-read my post before drawing erroneous conclusions. I was not blaming Obama for the run-up nor the (incomplete) crash. I am critizing him for trying to interfere with market forces. Let the free markets work without gov't intervention and stop spending are money throwing sand at the waves. The problem with a democracy is that sooner or later, the masses figure it out...they can vote themselves rich.

elweedz: I have seen very few circumstances in which it is has been healthy to not have some type of regulation (government oversight). Look at what has happened to our economy secondary to unrestrained greed and excess.

Perhaps if GWB had "regulated" (or slapped) the "INVISIBLE HAND" more often it would not have reached into the pockets of the middle class and stolen all of our money!

It's likely more appropriate to direct your anger towards Wall Street than our current president.

@Jim S
You are right regarding the folks who bought just to live at the place for a longer period. How about investments, equity spenders, pension savers...???

Oh come on now - both sides of the aisle share the guilt equally. Clinton repealed the Glass-Steagall act , which was huge in allowing speculation to really run wild, and Reagan was in charge when the economy started it's ascent into never-never land. And so on and so on.

Bottom line is that a very very very large number of American citizens became the largest (figuratively and literally) collective sucker in the history of the human race, and fed at the trough of gluttony, all the while utilizing "credit" (REMINDER----CREDIT =DEBT!!!) to pay for oversized purchases, with housing being the ultimate fat lady. Well, she is singing now and it is over. Many still have their fingers in their ears, and the government is praying that the rest prescribe to a huge dose of denial and spend their last few hard earned dollars to keep this greatest Ponzi scheme going.

But it is over. The no free lunch rule lives on.

Jim, I would agree except for the category of responsible people who purchased and would like to move for a job, better location, or have outgrown a house. I was responsible and bought a house I could afford, now I would like to get a house in a better location with more room and I can't because I am a little underwater. It's not at the point where I am going to ruin my great credit score by mailing in the keys, but I don't see any hope for the future. Just have to hunker down and suck it up.

PS. Both parties are to blame and if you don't believe that you need to stop drinking the cool aid and wake up.

Good comments Darwin Rules. If we get another credit passed we are only delaying the inevitable and kicking the can down the road.