I still think the mid- and high-ends are going to come down more at some point, but the low end has so much real demand (lots of all-cash buyers) that I’m not so sure that perhaps the low end has either seen its bottom or is very close.
I know there’s a lot of shadow inventory that’s yet to show up – and it will at some point – but when you have 5, 10, 20+ offers – many in cash – for these foreclosures, the losing bidders end up moving on to another property. I think the demand at the low end will more than offset the shadow inventory that comes online over the next couple of years. In too many cases, the price is right relative to renting.
But I can’t say the same thing about the mid- and high-ends.
