Unquestionably correct. Prices havenât even reacted yet. I realize this is anecdotal, but it gets to the issue at hand: My parents are currently trying to sell a home in gulf-coast FL in an area where homes were routinely selling for 800K to a 1.2mm one year ago. Not a chance now. I try to tell them to think of it like this: those houses were selling at illusory premiums. They were never really worth that. It was chimerical as a result of a curve of unbelievable availability of money-to-buy-houses. That will correct. And that correction hasnât even happened yet because weâre firmly still in the stage where no one wants to sell their home until the market âcomes backâ. So the inventory stays. They have just recently taken their house off the market. Like so so so many others. So, when you see an inventory number, remember â and this is the biggie â that there are many many more houses âpotentiallyâ for saleâ¦and the moment that inventory starts to get dented at all, there will be a flood of folks (just like my folks) who will jump in line. You canât have that sort of supply situation in a market that never sees a price correction.
+1 The subprime issue is still way too topical. Even with a potential rate cut coming up next week most people will be waiting for a bargain. Akuma
You are confusing housing with Mortgage Business, two different things. One is financing the other is a tangible commodity. Implode is being sued for printing lots of grabage by lenders, they were begging money for civil defense and attorneys fees! LOL!
Ara Hovnanian says we are close to bottom, so it must be real. He is also selling his inventory in NJ -20% last week's price.
Bottom is when buyers start coming out of woordworks. They have been holding off and there is a real pent up demand, when it hits the fan you will know it. These jackasses are known to stampede on each other, hike offers like bunch of rats in a sewer tunnel running toward sunshine.
Read this: Renters squeezed on all sides. How long these these idiots can hold off? Having a roof is a necessity, yet these morons are sharing bathrooms and kitchen spaces with other families like a college like dorms! LOL! It isn't that houses have vanished in America? They are standing there vacant and getting foreclosed! Why these people are so stupid and under achievers in life? It amazes me to see the blindness of these garden grown morons and jackasses ! ========================================== http://news.yahoo.com/s/ap/20070914/ap_on_bi_ge/renters__plight;_ylt=AngcmAdQT1mhAVJQq5eAARBv24cA On both coasts of the United States, and many cities in between, hundreds of thousands of renters face comparable plights. The home mortgage crisis has received far more notice, but experts say the ranks of renters with dire housing problems are growing faster than the ranks of defaulting homeowners. The Center for Housing Policy reports that the number of working-family renters paying more than half their income for housing has soared from 1 million to 2.1 million since 1997. Overall, advocacy groups say there are 9 million low-income renter households and only 6.2 million units they can reasonably afford.
Prices will need to come down to where there are buyers that can afford to buy before a bottom is in. We should see it as sales in units start increasing. I don't think any one month's data would be sufficient to convince me. I'd want to see multiple months where numbers were up over prior year. I think its at least 1 yr away, maybe 2 depending if a recession is avoided for 2008 or not. If avoided for 2008, I expect a bigger dip in 2009 after the election. That would be more typical, as its rare to see a recession in an election year, IMO.