Quote:
Originally Posted by Hatterasguy
http://www.msnbc.msn.com/id/33448199/ns/business-real_estate/
Inventory is down, I am seeing this in my local market. The bottom of the market ie the 250k and down range is VERY active. Sellers are seeing multiple offers, usualy above asking! 
I hope the market at least hits bottom. Price declines make my life very difficult, stabil markets are nice.
|
I saw a presentation this past week by an economist at an independent dealer association meeting (distributors to the golf, turf and ornamental market). Very informative, very entertaining, very gloomy! He showed us real world data showing how the "recovery" is little more than a dead cat bounce (even a dead cat will bounce if dropped from a high enough point). The published numbers just don't reflect the reality (and both parties are guilty of spinning the numbers the way they want them to).
BTW, this is the same guy who gave us a presentation 5 years ago, actually he was part of a panel on receivables management and credit policies, and told us that he thought we were due for some serious corrections in real estate, the stock market and the banking industry. Many in attendance thought he was nuts and precisely why we invited him back.
On the real estate side, one stunning number was the sheer amount of foreclosed, bank-owned properties that the banks are holding onto with hopes of the market turning around at some point because they don't want to take the hit of selling that house that they originally wrote the mortgage on at the very peak of the market. When the market does start to really turn around there will be a built up inventory of bank owned properties hitting the market which doesn't bode real well.
Based on his presentation I'm thinking the recovery is going to be a lot longer and a lot flatter than we all hope.