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Lower House Prices Will Cause More Housing Gridlock... not liquidation
invite response
2012 Jun 13, 6:06am 22,838 views 47 comments
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tatupu70
2012 Jun 15, 2:23am
Boom/Dunross-
Please don't qoute Goran_K. I have him on ignore because he pretends to be above the whole bull vs. bear debate, but really is just a permabear in disguise. And I don't want to see his drivel anymore.
thanks in advance
So, rolling back home prices will lead to less inventory because 1996-2002 buyers now won't have enough equity to sell their homes. It's a catch-22, renters want/need lower home prices, buyers can't AFFORD to sell at lower prices.
No you become the poster child of the RE bubble for many others to remind them of your mistake... therefore they wont in anyway overpay like you did. Eventually the owners will sell, take a loss to get rid of their own low savings rate.
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We are already in a gridlock situation where everyone that bought in 2004-2007 that hasn't foreclosed is basically TRAPPED in their home. The only way they can move is via short sale or walking away.
Lower home prices just equals more inventory gridlock... You can't buy a home from someone that doesn't have the cash to make up the difference to sell you the home.
So, rolling back home prices will lead to less inventory because 1996-2002 buyers now won't have enough equity to sell their homes. It's a catch-22, renters want/need lower home prices, buyers can't AFFORD to sell at lower prices.
Maybe Boomers will be forced to sell you their paid off home/ retirement fund.. But I think the majority of them will stay put.
#housing