More Real Estate Control is Not the Answer

I understand that both federal and local governments are deeply in debt, but the bills aimed at generating funds by attacking the already precarious real estate market are misplaced.
There is a proposal before government regulators to require a minimum of 20 percent down on all residential transactions. If allowed to take effect, the rule would put home ownership out of reach for middle-income Americans. It would take the average family 14 years to save up the down payment to buy a home.
Steve Kim, from our in house lender, Princeton Capital, recently sent me information on another obstacle to the housing recovery. On October 1 of this year, the top limit for conforming loans is set to drop from a temporary $729,750 to the general $625,500, in our higher cost housing market. Since conforming loans are eligible for sale to Fannie Mae and Freddie Mac, they generally have the lowest rates. When this limit drops, borrowers who want a bigger loan will have to get a jumbo, which includes both higher interest rates and tighter guidelines.
According to a recent Harris study, 54% of Americans do not expect to see a healthy housing market until at least 2014.
We just don't need more hurdles to cross in this slowly evolving real estate recovery.

Updates on Prop 90

I like Larry Stone, our county assessor, and think he's doing a fabulous job, but every couple of years the 'powers that be' get the idea that they will help to make up a shortfall in the Santa Clara County budget(55 million dollars) by eliminating Prop. 90...and with it, Prop.60. By doing this, they estimate a savings of $50,000.
If you've forgotten, these propositions allowed seniors and the disabled to keep their existing property tax base when they moved to a less expensive residence in the county, and also welcomed home buyers from other California counties into ours with those rates.
What they seem to forget is that retaining those homeowners and bringing in new ones also adds an infusion of buying power to the county. It also frees up large houses for young families to purchase...homes where seniors would otherwise be trapped in order to keep their tax base.
Presently. there are only 8 Prop. 90 counties in California: Alameda, Los Angeles, Orange, San Diego, Ventura, and locally, Santa Clara and San Mateo. El Dorado County was recently added to the list.
Let's not be penny wise and pound foolish...We need Prop.90!