Massive "Shadow Inventory" Overhang Will Keep Pressure on House Prices

With all the information readily available regarding housing... you would have to be retarded NOT to see the coming "continued" decline in home prices.

Not to worry BULLS. If it is any consolation, I expect a miraculous change sometime this afternoon in the market and it should finish on the green side. The government can't let you loyal followers suffer. Watch this afternoon. I already know, on good authority, the fix is in and you guys are only going to suffer for a little bit longer.

I just read the story below from Paul Volcker interview: http://blogs.wsj.com/deals/2009/09/30/paul-volcker-you-call-this-an-economic-recovery/?mod=yahoo_hs We need a paradigm shift in this country re housing, credit, etc. We need less consumer spending driving the economy and more savings/ investment.

If you buy a house now, you are letting someone else off the hook and putting yourself at risk.

Like Cash for Clunkers, once the credit incentive for new home buyers runs out, sales will drop. This admn. comes up with bandaids that smooth things over for a little while, but does nothing to correct the real underlying problems. Good Luck to All, you are seeing the demise of a once great nation that took its afluence and place in History for granted. Your children will not be as educated, since education has been sliding for the past 35 yrs, nor will they be as wealthy, nor will society be as stable due to the demise of marriage and morality.

See, it's already starting. After lunch it should be down around 10. After lunch it should be on the green side. No worries.

LET INVESTORS BUY THIS INVENTORY!!!!!!!!!!! CHEAP for CASH

It's great. Americans are finally getting a much needed dose of reality in so many areas of their lives!

Is the attempt to get people deeper into debt, or stablize their existing debt? The previous issue was created because of want and need. I wanted the huge home, but I did not need the huge home. Now, it appears people are more sensible.... or, maybe because they are afraid of losing their job, they are becoming more practical? The want and need may have reversed.

My understanding is that the Wall Street pyramid schemes sucked in over 50% of the population over the last 30 years (up from about 5%), most of the remainder being too poor to play. So, what's the plan for the next 30 years? Let me guess...the old Chinese tennis shoe scam? The rabble want to hear it...

The only segment of the market thats doing anything is the new homebuyers, and once the tax credit expires the jig is up. Many people still have 2 choices, stay and pay or foreclose, because they arent going to bring 1000s of dollars to close in the name of saving their credit. Capitulation still hasn't set in all the way yet because people are choosing the former.

taopraxis - you consistently post some of the most humorous and accurate comments on here, keep up the good work.

This is what Karl Denninger has been saying all along from the "Market Ticker". Banks are keeping empty houses off the market and slowing foreclosure's to make things look better than they really are and to try and keep prices from falling at an accelerated pace which would turn out to be much bigger losses for the banks in the long run. I love these little buzz words the media uses, "Shadow Inventroy". Just more lies as Karl often shows to be the case.

During the Great Depression, people who saved and lived within their means where OK provided they kept their jobs (most did) This time around, even the responsible ones are going to suffer because all the public spending is going to force up the cost of basic necessities.

The Banks are hiding the REAL HOUSING PROBLEM because if they divulged the real foreclosure status they would have to mark down their housing inventory accordingly and that would show substantial loses. The FASB Mark-to-Model rules is what's saving their butts. PEOPLE take back your government & country... VOTE OUT the INCUMBENTS in 2010.

Home buyers know that the market is glutted with people desperate to sell. Five people I know thought several times that their Florida homes would sell, but the potential buyers walked away, because real estate prices in their neighborhoods kept falling.

- Wednesday September 30, 2009 11:46AM EDT …“will crown the early winners in cellulosic ethanol”. 27-Aug-09 02:14 pm http://biofuelsdigest.com/blog2/2009/07/... “July 30,*YAK YAK YAK YAK YAK **************************************WOULD YOU JUST SHUT UP!

Wealth, especially conspicuous wealth, is declasse. Too many of the Wall Street poseurs were simply too unimaginative, i.e., *ordinary*, with preposterously pedestrian desires like anachronistic "bespoke" suits, overpriced booze, big old watches, shiny rings, cars, etc...They're rude, crude, smug, tasteless, dishonest and puerile...They think life is like high school. These are people who, with few exceptions, have absolutely no real abilities...Mostly, they talk on the phone for a living. They're overpaid telemarketers.

This bubble is very big. Takes a long time to deflate. Government intervention only prolongs the pain. Least we forget, government insentives created the bubble in the first place. Why??? Because of bribes, I mean lobbying, from the banks and special intrests....So this is how the "Free Market" works in America. Call that Capitalism? I call it organized crime....

I am also amazed that the analysts are ignoring the faulty sales price "bump" that is getting baked into calculations. Anyone who has sold a house recently can confirm that what they "sold" it for was recorded as the gross purchase price -- not the purchase price less the cash refund back to the buyer for improvements, damage to the house, etc. My house just sold for $1.175M but I had to "credit" the buyer $50K for little things they wanted fixed but that I did not have the time for. That is money not being taken out of the home price figures. Pure misreporting by the industry (big surprise).