Obama: Another Year Or More For Housing Turnaround

ATKINSON, Ill. (AP) — President Barack Obama said Wednesday that it will likely be another year or more before the housing market picks up and home prices and sales start rising.

But he said Washington, lately the target of public ire, can’t make that happen on its own. He said consumers, banks and the private sector will need to help, too.

Obama spoke at a town hall in the western Illinois town of Atkinson on the third and final day of a bus tour of politically important Midwest states. His comments were in response to a question from the owner of a local real estate company, who said she had begun to see a turnaround in late spring. But her phones stopped ringing after last month’s “debt ceiling fiasco,” when the government came close to defaulting on its financial obligations.

“We have no consumer confidence after what has just happened,” she told the president. “I should be out working 14 hours a day and I am not.”

Obama agreed that the lengthy, last-minute negotiation over lifting the debt ceiling was a “self-inflicted wound” that shouldn’t have happened. “It was inexcusable,” he said.

“But moving forward, a lot of this has to do with confidence, as you said,” Obama said.

He said companies are more profitable than ever, but are hoarding cash and not investing it. He said many banks have overcome their financial woes but are not lending as freely as before.

Obama said the administration is mulling how to encourage banks to start lending again, among other ideas for which he offered no specifics.

“But I’ll be honest with you, when you’ve got many trillions of dollars’ worth of housing stock out there, the federal government is not going to be able to do this all by itself, government is not going to be able to do this all by itself,” he said. “It’s going to require consumers and banks and the private sector working alongside government to make sure that we can actually get the housing moving back again.

“It will probably take this year and next year for us to see a slow appreciation again in the housing market,” Obama added.

He said growing the economy overall will also help the housing sector.

Obama was wrapping up a tour of Minnesota, Iowa and Illinois. He was to preside over a second question-and-answer session Wednesday afternoon with residents of Alpha, Ill., before leaving his customized black bus and boarding Air Force One to return to Washington.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • meow

    Landslide win for Obama… again.

    • leroy

      He said nothing…

      “It’s going to require consumers and banks” to get housing moving.. No kidding Sherlock, you just solved the housing crisis…

      It takes a person buying a house and a bank to give them a loan. Wow, did he learn that at Harvard?

      What an incompetent idiot.

      • Leroy Sr.

        You know what will fix it?

        Cut Taxes on the Billionaires and Millionaires, they sure do work miracles with all that money, don’t they?

        No wait. How about if we repeal the Health Reform Act. That will fix it.

        Or how about we get rid of the Department of Education, EPA, CDC, SEC, FDA, FAA. That will certainly move those homes and get everyone back to work.

        Wait, I’m not done brain storming yet. How ’bout we Pass a Constitutional Amendment banning Gay Marriage. That will get the economy going again.

        Last but not least, we can let the county default on it’s debt obligations. Who needs a ‘job killing’ AAA credit rating? People around the world will understand that we cannot afford to pay back the money we already spent.

        • leroy

          Who said any of those ideas will fix housing? How can you fix something that government caused to much of? They gave everyone a loan to build a house, oh surprise, more freeloaders were able to get loans, and then they went into default. Big surprise, freeloaders have no sense of responsibility.

          Really, first, why do we need to tax people more? Oh yeah, it stimulates you morons, your left lobe goes hoohaa… you need a bad guy to get votes.

          Health reform? wow, that is working great. My health insurance just went up. And 500 million was stolen from Medicare. But you don’t want that reported…

          If forming all those departments solves a problem, they should form more. Lets have an idiot department for all you idiots out there.

          The country came close to default because your president sat on his arse until the last possible minute. And now he is preaching to the world how we really should listen to those repubs and cut spending. Haven’t you been watching his exciting bus tour… yawn.

          Sr., I think you are having a senior moment, keep chasing the kids off your porch and shut up.

          • Leroy's Stepmother

            Leroy Jr. appears to be living in a Tea Party Bubble in-which everything will be fixed by blaming the liberals. It would appear that Leroy has been living under a rock for the past few months. Although most likely he is living in he’s grandmother’s basement. He spends his days whacking off to every possible online video of the Tea Party Princesse; which explains why his views on the issues are so twisted. He has memorized all their talking points word by word, they have been burned into his perverted mind.

            Just a suggestion for poor lil’ Leroy Jr., spend a little less time saluting the T.P. Princesses and a little more time reading up on the issues. You should also know that most of Michele Bachmann’s statements are not meant to be factual, rather they are bast exaggerations but mostly obvious lies which help her make a point. The point being she’s the most miss-informed, ditziest moron in politics. She’s just a better than average looking, soon to be, Senior Citizen.

            • leroy

              Sorry step mother.

              Oh, how does that work again? You are your own grand ma?

              Looks like there is a little inbreeding in your comment, or is your EBT card low again?

              And guess what ,I do not care for Michele Backman.

              Looks like you got a lot of things wrong, including voting for the messiah Barry Obamy… What an idiot he has proven himself to be. Housing recovery in two years? yeah right.

              • Annie

                Leroy, I believe 2 different people replied to your comments. They’re just giving you a hard time because of your views. Don’t take it personally. Just try to think before you type. All that talk about EBT and Freeloaders make you sound like another one of those tea party extremist nuts. Expect to get what you give.

    • ilikekitty


    • Jim

      The president does seem to be the only adult in the room at this point. I’ll be interested to see who emerges as the leading third-party candidate, but the clowns on the Republican side are going nowhere fast. I think the smarter Republicans are staying out of the race and letting the nutjobs run this time because they agree with you–President Obama will win again.

      • Rick Perry

        Jim: Your comments are trecherous and treasonous. We’ll ugly you up down in Texas, boy.

        • Jim

          Uh oh. Looks like I messed with Texas.

          • Rick Perry

            Big time buckaroo. We’ve got a saying down in Texas: If you mess with me once, shame on……if you mess……….well, you better not mess again.

            • Rick's real last name is 'Israel-Small'

              Sounds like all people in Texas must be mentally challenged.

  • Give me liberty

    He can’t tell the truth, even when he tries. I am hearing more like 6 years to clear out the inventory and stabliize housing market. But I’m sure the liberal media will let this go and blame Bush with promises of prosperity just around the corner to try and get their bobo re-elected again.

    What happens in 2 more years when things don’t start to get better? Is Obummer even accountable for his Presidency? Nope…blame it on the Tea Party. Or Corporate greed. Or the wealthy. The media can always find an excuse or villian when they want to.

    • Jim

      You’re calling him a liar because of his prediction of a housing turnaround? He thinks it’s a year or two, you think it’s six. If the housing market does turn around next year, does that make you a liar? Or just bad at predictions?

      Republicans are such victims these days. The big, evil media is out to get you! WAAAAAA. I thought Republicans were the party of personal responsibility? More like the party of professional victimhood.

      • Give me liberty

        Yes I am. He has the data and he knows it will be more than a year for the turnaround, but he needs to get re-elected so he goes with the year or more. So how much is more Jim? 1 year? 2 years? 3 years? 4 years? 5 years?

        Pretty ironic calling Republicans victims. The liberals blame them for everything, even when they have the White House and both sides of Congress, which they couldn’t keep for very long, but when they had it they couldn’t get anything done either.

        The only victims are the American CITIZENS, but the liberals are too worried about the illegals to make the citizens a priority.

        • Jim

          No one knows when the housing market will turn around and it’s silly to call someone a liar for making a prediction. He might be wrong, and I’m sure he hopes it turns around ASAP, but he’s not lying about this. He even used the word “probably” in the sentence. Politicians lie plenty, but this is a prediction, not a statement of fact.

          As for your rant about liberals, that’s just partisan garbage. I have no interest in it. Democrats blame Republicans for all the world’s problems and Republicans whine about Democrats whining. Same old, same old. Try to stay on topic and not veer off into stereotypical talking points (from either side).

        • Gimme A. Break

          The republican morons are out trying to tank the economy. Everything they do hurts the economy.

  • Jeff Jensen

    Obama “says”, “Another Year Or More For Housing Turnaround” and you idiots take it as a guarantee? more of his false promises. Granted he is not totaly responsible but he is a clueless, in-over-his-head fool just like all the moronic lib’s that fawn over him….get a clue.

    • Jim

      Who takes it as a guarantee? Certainly not me. And it wasn’t a promise but a prediction.

      People who disagree with you are “moronic libs?” That’s constructive.

  • StraycatStrut

    Thank God…one more year before things get better. I truely believe BO as he said the Stimulus would save us from 8%+ unemployment. Look how well that turned out. BO is truely the “Karnak” of our time…. and President also. I like the black bus……something I picture Darth Vador would ride in.

    • GOPSUX

      What is your answer then?

      • west

        obama is way over his head he has no clue of what to do next!


          What is your answer then?

          • Jim

            “What is your answer then?”


          • CommonMan

            Stop subsidizing the housing market. Let it hit bottom. We keep pumping tax money into it and it prolongs the bottom that needs to happen before it can start coming up. The people who love the continued government money that is going into the housing market support the DEMs so why would DEMS shut this vote buying machine off?

  • Nick

    Lol 1 more year of course just enough time to get him re-elected then he will come out and say some BS excuse as to why it didnt turn around as he has done 1 too many times now. All his fixes are going no where fast and costing the US alot of money.

  • ToughTimes

    I’m in disbelief anyone thinks the housing market will ever rebound, it was blown up on dis-honest loans, that flooded the market. Who do you people think will buy these homes that are vacant and the new ones being built, Does Obama expect the housing market to turn around before employment turns around. I think he just doesn’t know what to say anymore, and I don’t blame him, this country might finally be in over its head. I have a job and a $900 house payment i consider myself lucky.

    • waste

      Good post.

      However it happened, before and after the year 2000, that loans were given to people who could not afford them, I would like to know.

      Was it a regulation change? Did Fannie and Freddie push the banks, or was it more complicated?

      But regardless, somewhere in all that mess was the government. Therefore government caused the mess. You can try to blame Clinton, Bush and Obama, and others, but one thing we should all agree on is that it hurt every one of us.

      You could also argue that unemployment would have been higher in Bush’s reign if housing had not been subsidized.

      If that was the case, would more light have been shined on NAFTA and the decrease in US manufacturing jobs? I think it would.

      Until our politicians start to look at this without a political agenda it won’t be fixed. We will hear them push talking points that they hope will get them elected or re-elected.

      • Shannon

        You can thank Dodd, Frank, Waters and the rest of the Overseers of Frannie and Freddy. They pushed the ‘everyone should be able to afford a new home” so the word spread and pretty soon all standards are gone.

  • Ordinary Guy

    Jobs, jobs, jobs. No dough, no house, no car, no nothing. If you let imports pay their share, it all comes back. Otherwise, learn to tough it out. Housing failure is a symptom of a basic flaw in our collection system. It’s what ballooned the market and home equity at the turn of the century, and undermined the jobs market that really supported the housing purchases.

    He’s right though, the government can’t pay it right. They must change the rules, but in the end, it’s what citizens spend their money on day in and day out.

    • meow

      Agree with Ordinary Guy. Especially about taxing imports.

  • meow

    Like I said…. Landslide win for Obama …. again.

    • lou

      Any win for Obama…

      Is a huge loss for the USA.

  • mike

    Yup, that’s a place to start. Taxing the imports. How about looking at all the stupid laws that have been passed over time that have failed to help the country. The subsides that we pay that harm rather than help the country. Look at these areas and make some changes. Problem is though that noone has the stuff to make changes. I think they’re in the payroll of the ones who benefit.

blog comments powered by Disqus
Weather App
Thursday Night Football

Listen Live