A 2%-3% drop per month in prices will take care of stickiness. Wouldn’t you think seriously about selling, no matter what year, you purchased ? I think MANY would. 12-18 months of declines like that would toss enormous amounts of inventory into the pool. I believe, that is the scenario we will be looking at. Not a popular view, but very possible. Remember, prices normally correct faster and deeper on the downside, than the upside, of any asset bubble. We are in UNPRECEDENTED TERRITORY now.
The MSM is already getting a hold of the foreclosure story. Tonight, CNN was chronicling an old lady losing her home after 30 years on “Debtor Nation”. Just wait until the April numbers for housing come in.
Hold on for the ride, it’s going get real interesting, real fast.
