In Phoenix, the real-estate market is fixing itself with no help from the government.
How? Houses owned by folks who can’t afford to own them are being sold at auction. In some cases, happily, the buyers are then turning around and renting the houses to their previous owners with at rents that are much lower than the previous mortgage payments.
This is the free-market at work. And it’s better than any solution that has so far been floated by the government.
Well, maybe. But it was an unbridled free market that created the mess in the first place, so maybe another buying frenzy, albeit at lower prices, isn’t exactly the best of all possible worlds. However it is good that some real estate markets appear to be bottoming out.