Housing: Plenty of Reasons to Be Pessimistic

Housing: Plenty of Reasons to Be Pessimistic

There’s plenty of debate about—and money riding on—the question of whether we are in the midst of a sustainable recovery in the housing market. Nobody knows for sure, of course, but there are plenty of reasons to be pessimistic.

For one thing, the supply of homes, in terms of what is currently on the market and what is potentially for sale whether or not prices rebound further—the so-called shadow inventory—remains significant relative to demand, even though data from the National Association of Realtors (NAR) shows that inventories of existing homes are back to where they were eight years ago.

Aside from the question of whether developments that have occurred since then—including the fact that their are more ways to sell property than by going through a broker—have distorted the inventory calculation, the composition of sales has changed from what it was. Nowadays, a much greater share of transactions are in the “distressed” category than before the bubble burst. Given that more than 20 percent of sales are foreclosures and short sales makes the current ratio look healthier than it is in comparable terms.

Rest here…



2 Responses to “Housing: Plenty of Reasons to Be Pessimistic”
  1. stripes says:

    The crooks want the value of everything we labored for to be destroyed….That is their commie mission….we pay for it, build it & they destroy it…with massive fraud. Then they offer to “fix” the destruction they made happen to try & get us to accept complete communism..Not buying it for a minute. The properties are worth whatever we paid for them because that is what they said they were worth. They are manufacturing this whole thing….its a mind game to weaken us. Don’t settle for fraud…if you can’t get the retail price…..don’t bargain & don’t sell to these predators who set you up to steal everything from you…!

  2. Sarah says:

    If prices go down, does that mean the end of the universe? Rarely, if ever, do we see a discussion of housing for the purpose of housing. Not some poker chip, or hustle, tied into the coffers of TBTF. Not some crazy tulip crisis where war is being waged on millions of homeowners in an attempt to preserve wealth for a smaller parasite class. Ya know, tanks like Brookings et al are intimately involved in war efforts overseas, suppose in these crazy times they’ve decided that domestic low hanging US citizenry is worthy of the same contempt as innocent foreign nationals? Any other periods of history come to mind? Aside from conspiracy theories – how many human beings in the world have no place to live? It could be as high as 1 Billion. 1 Billion or more deadbeats

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