The truth is we see so much negativity from builders to lenders, yet the prices of homes has yet to really have a visual impact. The GREAT PANIC has yet to set in.
In the next few months as the majority of buyers, that WERE out there, learn that they won’t be able to qualify for a loan of any value, the realization will set in.
As we look at the simple aspects of supply and demand we have obviously, through numerous charts and data, seen the supply hit numbers we haven’t seen in years. The flipside of that equation is the demand has been squeezed to virtually nothing with stated income loans being nixed from the equation.
Christmas won’t be a cheery one this year for those investors who thought the buy and flip was going to work in 05 and 06. The GREAT PANIC began last week and it won’t be getting better anytime soon. It not as easy for the feds to fix something they intentionally broke. IMHO the economy is in big trouble and the horizon won’t be in the picture for years to come.