July Existing-Home Sales Show Gain

More loans are going into default and foreclosure, not only of the borrower, but now the builders are running out of cash. The downward spiral is not yet at midpoint, and will continue down for several years. What makes one think that prices will trend up in general, at any point in the next several years, when banks are trying to shore up their balance sheets and hoarding cash?

Per NAR: Total housing inventory at the end of July rose 3.9 percent to 4.67 million existing homes available for sale, which represents an 11.2.-month supply² at the current sales pace, up from a 11.1-month supply in June. While there was plenty of regurgitation of this inventory data, there seems to be no understanding of the toxic nature of this inventory.  An inventory dominated by lender...