Thursday, June 16, 2011

More good news.

US Housing Crisis Is Now Worse Than Great Depression

1 comment:

Anonymous said...

This from Housing Wire:

Tuesday, June 14th, 2011, 1:06 pm

"It will take at least another year to work through the glut of REO inventory in the market and yet to come to market, according to Rick Sharga, senior vice president of RealtyTrac.

"Speaking at HousingWire's 2011 REO Expo in Fort Worth, Texas, Sharga said the housing market is years away from full recovery, and he expects 2012 and 2013 to look similar to this year as the industry grapples with levels of distressed properties never seen before.

"'It's taking so long to get out of this mess because it took us so long to get into this mess,' Sharga said. 'We were at the tail end of an unusually long boom time in housing. Unfortunately, we're anything but recovered, we're actually still searching for the bottom.'"
http://www.housingwire.com/2011/06/14/realtytracs-sharga-sees-no-housing-recovery-before-2015

Bank-owned properties are deliberately being witheld from the market to keep property prices artificially inflated. This allows banks to overstate their balance sheet assets. This keeps the FDIC from shutting down the operations of marginal banks. The real estate market (and by extension, the banking industry) is far worse than it seems at first glance.

MALTHUS