The 'Walking Dead' Housing Recovery - Zombie Foreclosures
With the mainstream media becoming increasingly worked up about the pending real-estate 'parabolic' surge and 'now is the time to buy', the reality of 'zombie foreclosures' and 'foreclosure stuffing' that we discussed six months ago continues to grow [14]. While most prefer to ignore inventory as an issue (apart from Bob Shiller and Karl Case who have adamantly refused to 'bless' this 'exuberant' housing recovery), knowing full well that at some point these huge volumes of vacated but still 'owned' homes must come to market (once the foreclosure process picks up). The reality is that with Nevada, Kentucky, Maine, and Indiana having over 50% of homes in vacant foreclosure, there is plenty of supply to come (and with it the accompanying downward pressure on prices)...
Karl Case pours a little cold water on the ebullience of the nascent housing recovery hopers - once again due to the foreclosure and auction process...
Look at our local market. Approximately 22% are distressed sales. The number hasn't changed in about a year or so. It's obvious that banks are containing their inventory to avoid realizing losses and try to reflate the bubble.
Add in that Obama has called on banks to lend to "less than desirable" applicants, in hopes of getting more people into new homes. Haven't we done that before? Isn't that what got us here, in the first place?
Now that 25 to 50% of the homes are foreclosed on, that leaves 25 to 50% of potential homeowners with bad credit ratings! So, who are you going to sell to? The other 50%?We are still hanging on to what we have, waiting for our jobs to come back!
Look at our local market. Approximately 22% are distressed sales. The number hasn't changed in about a year or so. It's obvious that banks are containing their inventory to avoid realizing losses and try to reflate the bubble.
ReplyDeleteAdd in that Obama has called on banks to lend to "less than desirable" applicants, in hopes of getting more people into new homes. Haven't we done that before? Isn't that what got us here, in the first place?
ReplyDeleteNow that 25 to 50% of the homes are foreclosed on, that leaves 25 to 50% of potential homeowners with bad credit ratings! So, who are you going to sell to? The other 50%?We are still hanging on to what we have, waiting for our jobs to come back!
ReplyDeleteDumbarses!