Housing market problem in US...how would you fix it..?

[ver_jen]

STOP BUILDING NEW HOUSES! If we can't sell the ones we have, we need to stop building new ones. I have seen a ton of them go up in my little Michigan neighborhood and NONE of them are selling.

[coop]

The problems are caused by the individuals on BOTH sides of a risky loan.
Don't but more house than you can afford and if you are the lender, don't loan money to people who can't prove they can afford the house they want to buy.
Everyone who got hurt volunteered to participate in order to make some kind of ill gotten gain. Buyers,sellers and lenders.
There is not a "market" problem in the U.S.

[WilmaF]

Home buyers and lenders created this mess, not the government. I don't have a solution and fortunately, it doesn't affect me but home buyers need to be better educated about how low introductory rate mortgages work.