According to the National Association of Realtors, the rate of pending U.S. home resales rose 7.4% from July to August and is up 8.8% on a year over year basis. Pending sales in the West jumped 18.4% driven by foreclosure activity.
Keep in mind that both resale and new home sales volume continues to fall in San Francisco. And a couple of things have changed in the U.S. since August.
∙ U.S. Pending Home Resales Rose 7.4% as Foreclosures Cut Prices [Bloomberg]
∙ San Francisco Recorded Sales Activity In August: Down 8.3% YOY [SocketSite]
This is where both candidates have it wrong. The solution to the housing crisis is not to keep people in their homes, it is aggressive price cutting.
Any successful retailer knows this is the best way to clear excess inventory.
“The solution to the housing crisis is not to keep people in their homes, it is aggressive price cutting.”
Catch-22. That plan guarantees massive losses for the financial system, it’s implosion and nationalization. That’s why they want to slow it down and wring as much money out of the homedebtors as possible on the way down.
“The solution to the housing crisis is not to keep people in their homes, it is aggressive price cutting.”
“Catch-22. That plan guarantees massive losses for the financial system, it’s implosion and nationalization. That’s why they want to slow it down and wring as much money out of the homedebtors as possible on the way down.”
Obviously BOTH statements are correct! The mad, insane scramble is to find the “circuit breaker” that will provide a cooling off period so that bloated asset values can be re-valued. Whether that’s even possible is still debatable.
Asset devaluation is the ultimate way out. This bubble money never existed in the first place.
But the Feds are obviously still in denial.
Of course, they are: an election is coming up and they’re the ones who created the mess. Nobody wants to show up in the history books as the next Hoover.
When stuck in a hole, stop digging. Welcome to Japan redux.
More debt is not the solution for bad debt.
This is interesting.
What had happened over the last year was falling price and falling transactions…in econ 101, that is classic demand shift while supply curve stayed the same.
It will be interesting to know the median price. Depending on the price, we will know which curve shifted.
If Price continued to drop, that means the supply curve finally shifted (thanks to foreclosure). That will be great news for buyers because finally, the price shifted without impacting the buyers ability to buy.