The almost unspoken premise of the article is that the damage is contained and that the underlying fundamentals will be okay once we get past these foreclosures.
Foreclosures are hitting the bottom end harder at this point. Measuring them would tend to show a much lower median price because they’re concentrated on the bottom end of the market. There aren’t as many foreclosures in the upper price ranges so when surveying the average of all “market” transactions so you would naturally include the much higher percentage of the bigger/better properties.
It’s no wonder there’s a gap between the two – they’re comparing the smaller/less desireable homes to the larger/more desireable homes. It’s genius, I tell you, genius. Add in a little “Alan” speak from Mssrs Gin and Nevin and we get the 2008 version of the “Soft Landing” fantasy.
There is no “two-market” scenario on the bottom end because the foreclosures are driving that entire market. Morons.
