We could argue this point to we are all blue in the face and the truth is no one has the correct answer. The current market conditions are completely manipulated. Many buyers refuse to touch distressed properties, primarily short sales. That leaves REOs, which move faster than speed of light (when priced right) and a small percentage of positive equity homes. I am seeing a lot of bizarre stuff happening in North County.
I’ve already posted on the fact that there are homes moving in the same price range as 2005 and 2006 prices +/- in 92009 which makes absolutely no sense. I am shocked to see inventory move in that price range $1M+, but I will say it’s a far cry from early 2009 prices where the market was very dry.
The fact of the matter is we have way too much inventory, but the question is will our inventory levels change. I believe the banks and FED are in cahoots and we won’t see inventory levels change for quite some time but come November there will be a ton of changes in terms of buyers, rates and the overall demand. Prepare yourselves for round 2 as we are in the calm before the storm!
