Andy what is happening is that the number of homes that do NOT make it to the actual auction has risen. When we started seriously attending and purchasing homes about 13 months ago the number of homes that actually made it to the auction and were available for bidding was about twice the number that we see nowadays. Now dont get me wrong, back then there would still be 350 properties scheduled on a given day and maybe 40 of them would get to actual bidding. The rest would be postponed. Now instead of 40 you see 20 for the same amount. I have also tracked homes where the trustee sale was cancelled but the home was never for sale (at least not on the MLS).
Understanding the end game is quite easy. The banks are doing what they are mandated to do. They will be backstopped by the govt. That was played out awhile ago. Rich posted ahwile back about shades of shadow inventory. In the end it doesn’t matter because it is about buying time. Look, if you abstract the problem it is not really any different then unfunded entitlements right? Housing stock, medicare, social security… there is not really any solution in place to deal with the underlying problem, just measures to pus the problem out of the spotlight of the present.
