On topic…we aren’t even close to the bottom. Pending home sales dropped 3.2% in July which frankly surprised me. I thought we would see a small rise given the peak buying season and the fact that there are a lot of people out there hoping to catch the “bottom”, renters tired of renting etc.. Inventory is still way too high and more will be added this fall as sales slow and another round of forclosures reach the market. Add that to a slowing economy, increasing unemployment, the beginning of the option arms/Alt A loan resets and I think we have years to wait for the absolute bottom. It’s going to get worse.
