Scott Sambucci

Has a Market Reversal Happened?

With regard to the housing and foreclosure market, there's also the activity on the existing home sales affected by the foreclosure rate. For example, check out Sacramento existing home prices vs. inventory levels:

Sacramento: tinyurl.com/Sacramento...

Even with a constant decrease in inventory, prices are still falling at a steady rate. We suspect that the fall in the weekly inventory numbers are simply properties going into foreclosure which then leave the existing home market's traditional channels (meaning represented on a one-on-one basis by agents/brokers). Once the banks take over the property, they're bundling and reselling at pennies on the dollar is asset packages.

Despite lower supply in the traditional resale channels, prices are STILL falling. Seems to illustrate the lack of buyers as the current price levels. More on this problem here:

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