I’ll believe it when I see it. You could show me two buckets with a lot more inventory and I still believe the FED will control the release of inventory. The government is not stupid. They know that in order for the banks to remain somewhat healthy they have to artificially control home prices. If the banks stand to lose another 20-30% of their current values that could be catastrophic in terms of our banking system. I don’t buy for a moment. I have seen the media throw these numbers out one too many times and still the inventory sits.
I think things will slow down in the fall, but unless the FED starts demanding repayment by some of these banks I don’t think they will force these homes on the market. The game is manipulation although the outcome is uncertainty.
