This one is a pretty basic economic post based simply on supply and demand. More foreclosures are in the pipeline, There are more sellers than buyers, and builders way overbuilt and it will take 3 to 5 years to clean out the excess inventory. There are over 3000 building lots approved just in my county of residence. That is around a 5 to 8 year supply, and possibly more as the buyer pool dries up. With all the government intervention slowing down the inevitable crash I just wonder WHEN IS THE TIME TO BE AN INVESTMENT BUYER ONCE AGAIN? If you listen to the media they would like you to believe the bottom is near. They are trying to mislead the sheeple that it is a great time to buy with low rates and an 8000 dollar tax credit. They are trying to bail out the bankers at your expense. Unless you can buy well below market value, now is NOT A GOOD TIME TO BUY A HOME! It's as simple as that. Read the link. It's an interesting read.
It's simple math... No one would argue that 2 + 2 equals 4. RE affordability is the same, but we have people constantly saying that 2 + 2 can equal 5 and everybody agrees with them!?!
ReplyDeleteAlso, keep an eye on delinquencies. Foreclosures are trending down, but delinquencies are going up. Looking at just foreclosures you'd believe that we're recovering. What you're seeing is banks not going after delinquent homeowners...
ReplyDeleteCheck out Mish's site... Bernanke is scared S***less over CRE...
ReplyDeletehttp://globaleconomicanalysis.blogspot.com/2009/07/bernanke-terrified-over-commercial-real.html