In today’s market, the must-sell inventory consists of:
1. New homes (b/c builders are under pressure to generate revenues).
2. Foreclosed properties by lenders.
When you said: “Nobody seems to be under any real pressure to sell”, I think you meant there aren’t that many must-sell properties in today’s market, which is arguable.
Now, the number of properties in #2 will continue to go up in the next 2 years. That’s b/c there will be a large number of ARM resetting in the next 2 years. That’s when we will see the real discounts.
