Banks are holding inventory off the market

While it does hint at "hoarding", it does make economic sense to control the influx of properties into the market (in terms of theoretical supply and demand price curves).  Builders of new construction (e.g., condos and subdivisions) have long used "releases" and "phases" to control supply.

interesting post, thanks

We have been seeing some interesting reactions by the banks to this entire potion of the cycle.

They might be at stage one of the Elisabeth Kübler-Ross model and be in for a rough ride.

On the other hand, they might be preventing a major crash by keeping the inventory levels steady to down.

There are also a lot of differences between this downturn and the last major one.  I made that point at the last Arizona Foreclosure Prevention Task Force meeting that I attended and heard lots of agreement around the room.  Most of us see a lot more attention to prevention and Risk Mitigation this time around and we could end up with a relatively soft landing followed by a robust upturn.

Bill Austin

East Valley Living

Thanks for chatting with me!!~Stacie

The lenders have a much bigger problem on their hands then they are letting on about.

Interesting post.  What you are saying is in line with what I have been hearing too.

One of the large banks that i have come across is pulling homes from inventory to rent it for 6-12 months feeling that it will be much better at that time.

One of the large banks that i have come across is pulling homes from inventory to rent it for 6-12 months feeling that it will be much better at that time.

One of the large banks that i have come across is pulling homes from inventory to rent it for 6-12 months feeling that it will be much better at that time.