Apparently, we live in a smoke and mirrors society...
Foreclosure Delay Poses Risk
Wall STreet Journal says:
As politicians step up their interventions to slow down the pace of foreclosures amid concerns about widespread document fraud, economists say such delays could deal another blow to a still-weak housing market…
One comparison widely cited: In California, where judges don’t handle foreclosures, the housing market appears to have hit bottom a year ago and has been bouncing back.
But Dr Housing Bubble blog seems to be implying something different
California has nearly 9 years of housing supply – MLS lists 176,000 properties while total shadow inventory is over 468,000. A detailed real estate count of all 58 California counties.
I’ve never made the giant attempt of gathering MLS data for every one of the 58 counties in California… Yet this is necessary if we want an accurate count of shadow inventory. Over the weekend I went ahead and gathered MLS data and foreclosure data for each county to put together the full inventory for the entire state. What did I find? The data is startling because it shows that California, should it keep the current pace of things in the real estate market, won’t empty out the entire inventory for nearly 9 years!
This is stunning data. The MLS lists slightly over 176,000 homes, yet if we throw in homes in the foreclosure pipeline the total inventory jumps up to a stunning 468,000! The shadow inventory in the state is off the charts and locks us in to years of distressed inventory. Now we can see how some in the housing industry can play with these numbers.