Thursday, May 23, 2013

Why housing inventory is so low.

I have to admit, even though I am one of these people - I was surprised by the numbers. It's actually been so long now, I can't even remember what percentage of people were underwater during the deepest part of the recession. I thought it was 25%. But when you are 100% underwater, you stop paying attention. Now I'm only half underwater.

A while back I was talking to a guy I know. He mortgaged his house to build a commercial building downtown. So, on his house - he is super underwater. At the time I was telling him I thought we were going into stagflation. Even though I saw prices rising, I didn't think it could last. He admitted to me that even now he thinks about walking away. If the market takes a turn for the worse, I wonder how many will simply just get tired and continue walking away. I mean, one in four still underwater? It's a really high number. And I still have to remind myself prices have only been going up for 6 months. You read the news right? It's all puppies and unicorns. I know because in October of last year - even I still wanted to walk away from my crapshack.

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