I was watching the news today.  What was talked about was that nationally we have over a 10 month supply of homes on the market. 

What will it take to sell these houses?

Lower prices!  I am still doing purchase mortgages every month.  However, what I have seen is my borrowers are getting houses 10%, 20%, 30% or more under market value.  What that means to me is the market value is wrong.  Value is created by supply and demand.  With supply this high sellers need a reality check.  Either take the house off the market and wait it out or be willing to take a loss. 

People think I am crazy for wishing interest rates would shoot up to the double digits.  My reasoning for this is simple.  What is happening can not be fixed with a band aid.  Keeping rates low is only proplonging the crash.  Screw it!  Let's hit bottom.  The real estate and financing industries survived the crash in the 80's we can survive it again.

Some people will make money from the losses of others.  It happens.  It is the nature of this business. 

Happy NEW YEAR!

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