“The worst has passed,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We expect prices to bottom out around the middle of next year and then look for modest price appreciation for the next several years. There is still a tremendous oversupply of homes in most major markets.”
Tremendous oversupply may be understatement especially if financial conglomerate's 'shadow inventory' starts hitting the market.
“In the third quarter we started to see some real signs that the housing market is in fact starting to stabilize,” Stuart Miller, Lennar’s chief executive officer, said on a Sept. 21 conference call. “The sense that now is the time to buy is starting to gain momentum.”
Wow. Check that last line of the quote. WTF!?! We have real unemployment over 16% - who the hell is buying a house who doesn't qualify for the first time buyer tax credit.
Funny, Bloomberg updated their article as I was writing this. They added the following paragraph
Mounting foreclosures present a risk of renewed price declines as more homes are thrown onto the market. Foreclosure filings in August exceeded 300,000 for the sixth straight month, according to data from RealtyTrac Inc. A total of 358,471 properties received a default or auction notice or were seized last month, 18 percent more than a year earlier.