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Last login: Wednesday, June 1, 2011
I would have to disagree with the point of view stated by John Karevoll that the current lows are artificially depressed due to distressed sales. While these properties do represent a relatively large portion of the market compared to their historical share, if homeowners that are currently not selling their homes listed them, the increase in supply would just force those distressed properties to even lower valuations. As such I'd say the current lows are representative of the overall market conditions. Additionally, distressed sales have been playing a large part in the market for more than two of the past years, dismissing them as not representative of current price levels is not reasonable. Lastly, if current price levels are so 'artificially' low, why aren't unit sales picking up in order to capitalize on the low valued inventory that is available. Month's supply aren't declining to indicate that this is happening.
June 1, 2011 at 1:55 p.m.
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