Vicious Cycle In Real Estate

It's called a vicious cycle. Lower real prices are squeezing the heck out of homeowners buried under too much mortgage debt. It's the main reason why QE1, QE2, and the coming QE3 are not helping real estate.

It will take decades to over come both the recognized and unrecognized supply overhang.

Months Months Supply of New One-Family Houses for Sale And Change YOY


Headline: Underwater mortgages rise as home prices fall

The number of Americans who owe more on their mortgages than their homes are worth rose at the end of last year, preventing many people from selling their homes in an already weak housing market.

CoreLogic says about 11.1 million households, or 23.1 percent of all mortgaged homes, were underwater in the October-December quarter. That's up from 22.5 percent, or 10.8 million households, in the July-September quarter.

Source: finance.yahoo.com