I 'm convinced that we need to see a price drop in most of the south Florida housing markets.
Unfortunately, many public policy proposals have been aimed at propping up home prices, or at least cushioning their fall. Nothing could be more counterproductive.
The housing downturn was a classic bursting of an asset bubble. The suddenness of the collapse was frightening and, for a time, prices seemed to be in a free-fall, especially in over-heated areas in , California, Florida and . But the cure for falling prices in the aftermath of a speculative bubble is, paradoxically, to allow them to fall.
In housing, as with other assets, falling prices clear markets. They do so by making homes more affordable.
We need to get to a point where it is affordable to buy a house to buy a house.
Bank are keeping forclosure under wrap not putting them on the market that is proping up prices.
They need to put all of the inventory they hold on the market on the that will drop price and force owners to adjust and also reduce the price of homes they hold.