Update from the Foreclosure-Based Economy 1
Heidi Moore distrusts the numbers.
She suspects that reports of recovery are overblown and that the “housing recovery” isn’t so much a “recovery” as the next stage of foreclosure frenzy.
In this case, they may be creating the boom themselves. House-flipping in California has reached levels not seen since 2005, according to the Wall Street Journal. This rise in price is, by all accounts, artificial. Housing, like all products, responds to the laws of supply and demand. When supply decreases – when there are fewer homes on the market – then prices will rise. This is what is happening now.
And I’m still waiting for sequestrian dressage to start affecting the numbers, because it will.
May 29, 2013 at 10:07 am
Finally a voice tells the truth. No recovery, false expectations and hang on as the ride is about to drop. Great article!!