Interesting take –
“A realistic forecast of the bottom of the housing market needs to explicitly acknowledge that short sales have temporarily hijacked the market mechanism: the near-term course of the housing market will be determined more by the procedural timelines of foreclosures and short sale approvals than any notions of a magic price that will clear existing inventory. After our housing mega-bender, we will be suffering inventory indigestion for some time to come.”
This supports the view of Graphrix and a few others who take issue with inventory data analysis, such as that from my firm or from Steve Thomas. But absent the actual numbers supplied by the banks, it’s simply the best some of us know how to do. So, let’s see some intelligent input from those who claim they can do it better, and provide some of us some insight as to what the data points need to be to get a handle on the absorption variables.
Have a great day!
