BlueFire

Housing Data Shows Downturn Could Be Prolonged

The thing of it is that we are creating a huge inventory of properties being sold off at bargain basement prices either to investors at the preforeclosure stage as banks are forced to sell short, or as REOs as banks are forced to sell off this huge backlog. As a result, the housing values we are seeing are artificially low. These properties are being sold BELOW value. As a result, they pull down the comperable values of entire neighborhoods.

Now the inventory that needs to clear is still huge. But, anyone willing to buy and hold for a minimum of 3-5 years is going to make a killing in real estate. When that inventory does clear, there will be a significant uptick in real estate values as real buyers start paying real prices.

Patience, people. Everyone thinks in quarters. It's time to be making five year plans here.