“This is very bad for the economy,” said Rick Sharga, a spokesman for RealtyTrac.”
Wrong. This is GOOD for the economy. Oversupply bubbles means prices must necessarily drop for that asset. Lower prices attracts buying, and over time the market works thru the supply overhang to get back eventually to a healthy market.
That is of course the govt and banks don’t screw up the market again with their past practices.
Right now it sucks for the realtors and the banks, but homebuyers right now are getting great deals. People who likely couldn’t afford a home are doing so now. Now we just need to improve the job market.
“Lower prices attracts buying, and over time the market works thru the supply overhang to get back eventually to a healthy market.”
They’re going to need to be significantly lower, as more and more people lose their jobs. Next up will be more and more multi family homes, creating even more of an oversupply. There’s a long, long way to go before the prices bottom out. IMHO.
Home prices were far too high to begin with. About time they fell. Now, if only the rest of our property taxes would follow suit.
“Right now it sucks for the realtors and the banks”
It sucks a whole lot more to those of us who are trying to sell a home NOT in foreclosure.
Sorry, but the missing factor here is the need for a sustainable job market in order to privately subsidize and sustain the purchase/mortgage for a home.
Without job growth, the market is going no where but down.
There's not enough growth to sustain the market nor generate confidence for buyers to purchase a home.
It would require competent leadership and economic savvy in order to boost confidence in the market, inspire job growth and provide an incentive to purchase a home, which in all reality, is a heavily depreciating asset.
In short, we're DOOOOOMED. Ok, maybe not, but we really need a conservative to win in 2012, and take the senate while keeping the house in the process, and drive the socialists into the seas.