Pretty much agreed with sdr… There is NO DOUBT that many people will be forced to sell. They WILL have to sell at whatever the market dictates. However I see people with equity that are not in risky loan vehicles simply shutting it down and sitting tight. Whether they are wise to do that is not the point of the post, the point is that there is a very large number of people, with equity, with relatively safe financing vehicles, that will simply sit tight.
Will that support the market? No I doubt it. Will there still be alot of inventory, alot of REO, alot of distressed sales? Of course.
I think sometimes people may obscure the fact that there was alot of housing market activity before 2003.
Finally there are other people who also have horrid financing vehicles but who put alot of cash down. They are refinancing and sitting tight. Yes they lost equity but no they are not bailing out. There was a recent withdrawn listing on Sunset Ridge in Scripps that I was tracking that did this.
Agreed again with sdr on the REO pricing. That has been one of the most frustrating things of all this year and 06 was that the REO properties really are not priced that well…at least not yet….
