Good thoughts.
Unfortunately, banks aren’t selling off foreclosed properties at rational market rates to get them occupied again.
They are sitting on them, asking excessive prices, hoping for federal billions to bail them out. If they were to sell, they guarantee a big loss, and have no hope of getting the bailout bucks.
Right. But at some point these properties will be subjected to SOME kind of transaction (sale, loan write-down, purchase by another bank or Uncle Sam, etc.) that will establish a new (and more realistic) market value.