I remember reading in 2004 that about 10% to 12% of SD purchases were not owner occupied. And we know how many more probably lied and said they were going to occupy in order to get a better loan rate/deal. So it has heavy speculation already.
I track several investor groups and they are strongly advocating purchases in the under $300K range…every one of them! High levels of speculation tend to create high levels of volitility for many reasons. I think we’re going to see a lot of crazy stuff in this market in the next 8 months.
But I really think that tracking inventory is an indicator is flawed in this market… it’s too full of dislocations.
