Even if the Tsunami comes(which I don’t buy), there are many prepared people on all sides ready to buy them.[/quote]
There’s a shitload of buyers for foreclosures under $300K here in SD. These properties get 10-20 bids, one wins (by definition), and the others move on to bid on other properties. So, the low end, where most foreclosure sales lead to a mortgage (plus other costs) less than renting or a modestly positive cash flow rental, is probably very close to the bottom. The problem is with the mid- and high-ends where there aren’t many move-up buyers and there’s still no rental support to the prices. I doubt that can sustain itself.
