Please dont forget that they are kinda cherry picking their numbers there.
Step 1, 85% of median home price. This would make sense in a normal market with normal distribution, but (assuming they are talking about Q1 median) we had anything but a normal median. Janurary had what, 55% foreclosure sales? Feb wasnt far off. Even now it is ‘down’ to 35%. The only things selling are the low end, and these guys are gonna buy 15% below that? I thought CAR/NAR was always complaining how foreclosures are unfairly underpriced already.
Step 3, interest rates. Umm, lowest in recient history and totally manipulated. Not really their fault, but not telling the whole story here either.
