1. As long as Builders have inventory they have to cut prices until they sell.
2. Seller that has to sell will cut prices until they sell.
3. REO’s are exposed to the worst of the of the price cuts because the banks have liability that require limited property ownership. This is why if you follow the reverted back to lender discount price in which the banks are purchasing homes back are extremely low making room for low listings to beat the rest of sellers.
By the way you answered your questions with People want to buy but cannot afford!!!! Therefore homes must become affordable or banks start offering subprime loans again?
OCT 2007 is just picking up speed and no way the bottom…
I have put an offer on a REO with a 35% low ball offer the bank is getting a BPO on my offer because I have scared the shit out of them with local comps, listings and repairs that put it at 35% off with room to depreciate and also I’m the only offer they have received
