vboring

Housing Prices Expected to Bottom in 2010, 21% Off '06 Highs

the markets are very optimistic.

in what world does the price of a commodity rise 100% due to speculation while the supply is increasing, then only fall 21% while supply continues to increase.

the rate of increase of supply is falling, but the supply of houses countrywide is still increasing faster than the demand for them.

add to this mortgage rates and lending standards that are unlikely to get any lower and other recessionary problems and a 21% fall from peak in nominal prices can only be achieved through major inflation or market manipulation.

not to mention increasing numbers of high LTV borrowers making the rational decision to walk away from underwater loans.