[quote=SD Realtor]Socratt I have given up trying to figure it out. The housing market is absolutely on fire right now and yes to me it does not make any sense. All I can say is that people are doing exactly what the government wants them to do. They are buying homes, they are buying into the stock market and pretty much just chugging along. I am not saying I have a clue what will happen because it seems impossible to be sustainable. However it is absolutely imperative to get some of this shadow inventory to get into the market because it is just crazy right now. [/quote]
SDR, it’s interesting because in one sense I can’t complain because my business is doing really well right now and there is much more cash on the table than there was a couple of months ago. On the other hand I wonder if we are being misinformed simply to keep US consumer spending moving which will in turn put a temporary float on the economic numbers.
I agree 100% that we need this inventory to start showing up on the market ASAP because it seems as though we could have an immediate impact to prices if these inventories hit the market in a 2-3 month period. I read some interesting numbers about the release of foreclosures supposedly hitting the market during the months of May and July, which would seem to have a pretty dramatic impact nationally.
I think it would have been a much smarter move for the banks to leak these ghost inventories sporadically rather than hold them for such a long period. Assuming rates won’t stay this low for a long period, I can’t imagine that was the right decision. Once the inventory is released a number of these new plans instated by our government, i.e. 105% loans, won’t make much of difference.
