[quote=sdrealtor]Have another beer and make that gut bigger because it aint changing dramatically. The banks are making a killing borrowing free money and lending it out for 5 to 6%. They are gradually fixing their balance sheets, keeping their collateral from cratering in value and managing the flow of foreclosed properties so as to maximize their collective positions. The game isnt fair and never was, nor was it ever designed to be. Expect more of the same.
Not to say prices cant revisit some of the lows of last year and go down a little from there but wholesale destruction just isnt in the cards. Sorry if that is what you were a banking on……….[/quote]
The kicker is how long they will be able to do that. If the Fed raises the borrowing rate for banks, they won’t be able to hold back inventory and the supply will balloon. If interest rates for buyers increase, demand will implode. If borrowing costs for the US Gov increase, both will happen.
