Dr. HousingBubble reports:
«Recent data shows that the shadow inventory figure is starting to decline nationwide. However in high priced markets particularly in California there is little movement in the shadow inventory. To the contrary, notice of defaults for California raged up nearly 70% in the last month of data. In other words while the pipeline nationwide for shadow inventory may be declining at a slow turtle like pace, little of this is happening in high priced markets with absurd levels of hidden inventory like in Beverly Hills or Culver City for example.
Adding fuel to the fire, the incredibly high mortgage limits are set to expire which will keep the faux-bourgeoisie from buying their $1 million shack in a preferred zip code simply by going into massive debt. They will now need to come to the table with some solid cash and a respectable income. Realtors are bemoaning this and trying to fight tooth and nail to keep it in place because they realize how phony some of these buyers are in terms of their actual net worth.»