Posted by: jhamon | June 18, 2009

“The Smell of Delusion”

 

From Dr. Housing Bubble, one of my favorite by-the-numbers observers of California real estate:

Since we have emulated Japan in everything concerning fiscal and monetary policy, we may have a stagnant decade of real estate ahead of us.  So for those buying homes for $100,000 and collecting $800 in rent, you are a long way from cash flowing like a mogul… I have for over a year explicitly shown how the Alt-A and Option ARM collapse will depress California housing for many more years and now this is being picked up by the mainstream media.

The  ultimate sign of housing distress is a foreclosure.  With recent data we now find that nearly 1.6 million homes have foreclosure filings for 2009 and this is with 5 months of data:

Dr. Housing Bubbles Chart of National Foreclosure Activity

Dr. Housing Bubble's Chart of National Foreclosure Activity

 

Dr. Housing Bubble’s conclusion is built into the title of this post, but read the rest here.

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