So with all this easing of housing prices coming in the near future doesn’t this start a vicious self feeding trend? Shadow inventory moves onto the MLS (in bunches)… prices decrease… Now that 20% of underwater home owners moves to 25% or 30% and thus those people to will be forced in a decision process. At some point there can’t not be any further “market compresion” of people that will enter the decision cylce because there will be a break even point.
But has anyone made a precdiction on how many more people will enter the decision process once these currently distressed owners are out?
