Just as an FYI
Today on CNBC there was a small report regarding banks holding out on releasing REOs. I looked for the video on their website but did not find it.
The interviewee could not speak on behalf of banks, but did note that Fannie and Freddie would release REOs in slow succession [paraphrased] because of the 6 month supply of conventionally priced housing on the market (20 month supply in Jumbo).
It did not seem that there was any concrete evidence or discussion as to the validity of concerns regarding a deluge of properties hitting the market and driving the pricing down, but it was alluded to that Fannie and Freddie were thinking that way.
One has to suspect that if this is the case, then the rumor of new homes flooding the market is not true, price points won't fall into the abyss and the buyer is hedging on minimal savings. If Fannie and Freddie are approaching the industry with this thought process, we can be sure that some larger institutions will follow suit.
Buyers who are going to misread the report will believe that they may have better bargains six months from now when the 6 month supply dries up...we know it doesn't work like that, but that's why we are in Real Estate and they aren't.
Maybe the video report or the story will be up on CNBC by tomorrow.... more