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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (84736)	8/11/2007 8:29:16 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

You could well be right. I am only planning to start looking in a year. Possible scenario: October 07: ARM resets peak. Borrowers decide to tough it out until Spring selling season, hoping to be able to sell for "what they need to break even". April 08: Spring buying doesn't materialize June 08: default notices start August 08: Foreclosure proceedings get into full swing November 08: Auctions rev up. Investors jump in Feb 09: Auctions still going up. Most investors out of funds. May 09: Auctions at high levels. Investors out of funds. Prices start to drop precipitously, starting a new wave of defaults and foreclosures. Through all of this the builders are still building and selling at prices below the homeowner prices.