Another installment from Jim the Realtor, showing “euphoric” demand for high-end REO housing in north San Diego beach communities:
[youtube=http://www.youtube.com/watch?v=p5BX1hEUVrg&hl=en&fs=1&]
Relatedly, Jim has an interesting post about shadow inventory using Carmel, Calif., as a test case.
No one disputes that an enormous number of foreclosures are in the pipeline. (One recent report put the number at 7 million.) It remains to be seen, however, whether these foreclosures abruptly flood the market (causing a crash in prices) or trickle out over a period of years.