We’re in a classic deflationary cycle right now. very interesting to observe. Very difficult to stabilize, incredibly difficult to reverse. Best case scenario is that we stabilize. Worst case, we accelerate deflation. Unemployment is rising and credit is constricting. My bet is acceleration.
REO sales are 45% of the market and growing. Man, who would have guessed??!!!This is amazing stuff!
“If sales do not grow and foreclosure sales continue to grow as a percentage of total sales, we remain on track for an absolute housing downside overshoot and subsequent total meltdown.” -Best, Mr Mortgage
This guy know’s his stuff! We’re headed into the “slow season” for RE sales and REO’s are accelerating. What do you think is going to happen between now and December 31,2008???
