http://www.zerohedge...bubbles-housing
This time IS different, because at least 40% of the purchases in the past 5 years, and perhaps higher, were done by speculators using cash. They were lured into feeling these were 'safe' vehicles outside of leaving cash in the bank at near zero interest. First and foremost, houses ARE NOT investments. They are high maintenance, and the underlying structure and appliances depreciate as time goes on.
Unfortunately, people in America, particularly cash rich speculators like to learn things the hard way. They don't like to be told what to do, or when they can do it. Its sort of like the gambling and drug addictions our society has. Casinos and the like all of the place. American's overtly optimistic, or just plain and simple 'gamblers' ???
So as fast as they all got in, it will be almost as fast as they WISH to get out - as they don't live in the homes. But they may not actually get out so easily, at least not with the amount they speculated with when people start hitting the exits.
And homeowners who successfully refinanced, have another false signal of comfort of a little more equity if they see prices rising as they have. I'd expect more rounds of foreclosures.
The next down leg in housing will be far less pleasant than the first.
