Oversupply is oversupply, whether the overhang is 3x as many as we have buyers for or 6x, the result is the same.
Buyers have options, one of which is to continue renting. The banks really don’t have options. They’re competing with each other for the limited numbers of buyers at these prices. Once the pricing drops to a rent equivalency those renters who can qualify will start jumping in. Once the prices drop below rent equivalency the long term investors will jump in.
Incidentally, a 4 year supply of homes puts us at 2012 before things stabilize. That’s a mite longer than what a lot of the bear pundits have been saying but it’s by no means extreme.
