[StBernard] Home sales tell tale of two markets

[Westley Annis]

Question for John Scurich:

You commented that "I believe once the LRA money finally starts making its
way into peoples hands
we'll start seeing a more active market and that will help values increase."
I wanted to raise another point.  I think you are right that this spring and
summer we may see a slight increase in property values as people get their
LRA funds.  However, after the LRA money gets paid out, the market will then
be frozen, with even fewer buyers and sellers.  Everyone who gets LRA money
commits to staying in that house at least three years.  In other words, if
100,000 people get LRA money, 100,000 families will be out of the market for
at least three years.  A person who bought a house in, say, January 2006 and
gets LRA money in June 2007 must apply that LRA money to the mortgage on the
new house and cannot sell that house, and can't buy another one (even
another one in Louisiana), until June 2010.  That's a lot of buyers and
sellers who will be out of the market until 2010. Your thoughts?

CK