Yes, the banks aren’t selling the REOs. It is a permanent condition as long as *we*, the taxpayers continue to offset the huge losses the banks are taking with our tax dollars. There is no indication that will stop. Look at the reality of the situation vs. what you’d like to believe.
I’m not up 40k and I’m not going to be down 50k in six months. I have no intention on selling anytime soon so my current equity position is of very little importance to me. My monthly costs are cheaper than renting, significantly cheaper after factoring in tax savings. 40k up, 100k down, big deal.
My map isn’t my counter argument. My map is what it is. We’ve already established that you need to take a look at the specific local picture rather than just look at raw numbers and macro economic outlines. All of those foreclosed lots? Those skew the number of REO’s significantly but has very little impact on overall prices. But of course raw numbers and pretty pictures don’t illustrate that.
Train wreck? Hardly. The train wreck was 2006 when we dropped 55%. This is the aftermath. This is the slow and steady cleanup and bottom.
More datapoints: job openings.
I’d give credence to your argument is this list was 0.
