“I honestly believe that there are a good number of homeowners waking up to the fact that it is “now or never” and will try and beat their neighbors to the punch by listing this spring. Increased competition for an ever shrinking pool of qualifying buyers will further depress prices.”
Precisely. That is one of the catalysts for the conversion from the Virtuous Cycle to the Vicious Cycle that is occuring right now. Bernanke is pushing on a rope at this point. Without wage inflation, the ability to service the debt levels just isn’t there. Without economic growth, you can’t get wage inflation…where is the true economic growth going to come from precisely? This is why RE asset prices are going to deflate severely in the bubble areas.
I watched the Republican Debate last night..it was ridiculuous. So much time was wasted on what John McCain or Mitt Romney said or didn’t say, meanwhile, the MSM is ignoring the only candidate on that stage that understands what if really happening in real time.
