In response to the Bush Administration's proposed $700 billion absorption of bad assets, Big Builder launched a survey last week to determine its readers' opinion on the potential effects on the housing industry. Overall, the general consensus appeared less than optimistic.
Out of a total of 36 respondents, less than one third--31%--believed the proposed bailout would help to stabilize home prices, while 11% expected it to contribute to a decrease in home prices. Conversely, 9% of respondents said they expect the proposed bailout to contribute to an increase in home prices. The majority, at 50%, said they expect the plan to have little to no effect on home prices.
Far from optimistic, some of Big Builder's readers appeared to take a rather pessimistic view of Treasury Secretary Paulson's proposal. Said on respondent, "It will further hurt our national infrastructure."