We are all assured foreclosures are coming and banks are already sitting on plenty as well.
If there are bidding wars, why wouldn’t the banks be clearing some of this “ghost” inventory? The Banks are stupid but stupid enough to hold inventory until after the spring rush ends?
No bubble in history has ever been reflated.
But, never in history has the worlds leading economic power blown so hard to reflate.
In my opinion you will not see prices come down to reality (like North Park) until 30 year rates move back up.
Every day I wake up to find out that our Government/Fed is doing something that everyone said they were not supposed to be able to do!
Up until about 2 years ago, the Fed supposedly could not control 30 year rates. Now they totally control them.
My fear is the Fed is able to control rates long enough that inflation picks up a couple years before the Fed gets out of the Mortgage manipulation business and housing prices correct via inflation by treading water at current prices.
I hope I am wrong but I continually see the Fed putting its money where its mouth is while I hear a bunch of hot air about the “foreclosure explosion”.
