Recently I read a comment (I forget where – one of the blogs) that made sense to me, which Mr. Mortgage kind of misses here.
Usually, when the low-end is selling well, it means good things for the move-up market because the sellers of the houses in the low end buy a bigger house.
Mr. Mortgage states that the move-up buyers are nowhere to be found, and the low-end is disconnected from the high end but he doesn’t connect the dots and say why – that it is the poor condition of the low end SELLERS that create the dearth of mid-range buyers.
When banks and underwater homeowners are the sellers of those low-end houses, they aint gonna buy a mid-range house any time soon.
That’s why the markets are disconnected.
I don’t think ther’ll be 2 bottoms. Just 1 long one.
