For anyone believing that the housing crisis is past or that housing prices have bottomed, the following from Financial Armageddon should wake you up:
Economic theory has it that prices tend to rise when demand exceeds supply. But when the potential inventory of homes for sale by banks — which is aside from the properties that homeowners and builders might also be looking to unload — is equivalent to nine years’ worth of demand, as detailed by Real Time Economics in “Number of the Week: 103 Months to Clear Housing Inventory,” that suggests those who see signs of a recovery in the residential real estate market should probably be thinking about checking into rehab …
These are only the homes held or soon to be held by banks. Homes currently on the market or waiting to come on the market in the normal course of real estate transactions only lengthen the calculated time.
In the market for a home? RENT INSTEAD!
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[...] is Destiny By Monty Pelerin, on April 27th, 2010 A recent post on The Housing Recovery dealt with the problems of foreclosures and their effects on housing. Specifically, the homes in [...]