westwest888

Home Prices Have Stopped Falling: The Statistics Are Skewed

You could post date your article August 21, 2011 and your bottom call would be wrong - like Ben Stein wrong, Daniel Mudd wrong, David Lereah wrong.

The "green zone" for house prices is a maximum of 3x income or 120x rent. By either measure in any top 20 US city, we'd still need to fall another 50% to be in the green zone. But that's not the bottom, that's just the MAXIMUM affordable, sustainable home price. The bottom in some cases is 1/4 current asking prices. As for REO inventory, you'd better hope private equity approaches these banks and buys 50,000 houses from them in bulk with financing. Like $0.50 on the dollar, $0.10 down, 80% financed. A call option. LOL.