I can’t wait to see the sales figures for the next couple of months…they are going to be a disaster. With banks the size of countrywide facing liquidity crunches, lending has all but come to a halt for anything nonconforming.
I believe this will pass, but it’s going to act as a great catalyst to get the downward spiral turning. Around the time this eases up, the crush of REO’s out there will start hitting the market, and both of these factors will baloon short sales…I’d like to spend some time on the data, but with short sales in the 20% range + REOS and a high vacancy rate, I have to believe will be at 50% highly motivated sellers throughout the Fall/Winter.
