Anyway, here is what is measures. And if that it too elongated, the HMI basically measures how healthy the housing market is.
And it isn't too healthy. You know those bevy of cookie cutter townhomes/single family homes that form a big massive circle around every major metropolitan area and sprawl out for miles until all you can see is a vast sea of identical and un-unique housing that all of the sudden makes you feel like you're in a public housing project designed by communist architects?
Yeah, those architectural master pieces are foisting a glut of supply on the housing market, driving down prices.
It's also driving down the HMI to it's lowest point in 11 YEARS!
A buyers market for sure, but a market so overvalued you'll definitely want to low ball those selling by a significant margin.
2 comments:
Good luck low-balling. The serial refinance trend over the last few years has left a majority of homeowners with absolutely no equity in their home. They simply can't budge on the asking price, because they have no money in the bank, and no equity in their homes.
It does not look good. I see lots of foreclosures in the coming months...
And that's why supply will still hit the market.
High gas prices, no more HEL-induced consumer spending, I can see the economy contracting, people getting laid off, they can't afford their payment, they have to foreclose;
BOOM! Glut of property hits the market by banks desperate to unload it. Prices fall further.
People and banks will be desperate. You will be able to low ball them.
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