HousingPANIC Quote of the Day

"At current levels, the average American still can't afford the average house. Despite the creativity of its new policies, Washington can't alter that math."

"The only mechanism to restore balance and get the credit flowing is for prices to fall steeply to a true market level, and for losses (for consumers and corporations) to be recognized and absorbed."

- Peter Schiff, March 2008

FLASH: American homedebtors even dumber than I thought possible, homes won't be selling again for quite some time

Supply, demand, price, right? Wrong. There is no demand, there is huge supply, but 74% of dumb homedebtors still don't get it, and aren't lowering their prices (mark to market anyone?), so therefore homes won't be selling.

And you'll see supply continue to build and build, while sales continue to fall. And then, one day, maybe years from now, homedebtors will get it. Like Hovnanian got it the other day with their hilarious firesale. And the desperate homedebtors will FINALLY lower their prices, FINALLY mark to market, FINALLY leave denial behind. But by then, it'll be too late.

Here's CNBC's Diana Olick:

Homeowners Just Don't Understand Value Of Homes

A new survey out today from Reuters/University of Michigan looks at homeowners’ perceptions of their own homes’ values. When the survey flashed over the wires this morning, my email lit up with all the “Alert” desk folks at CNBC saying, “Omigod, this is huge.” I don’t agree. I say it’s not huge enough.

The survey’s headline says, “A record 26% of U.S. homeowners say the value of their homes has fallen during the past year.” Further, 21% of homeowners polled in September expect the value of their home to decline in the year ahead. The survey finds even bigger numbers if you look at folks just in the West, but that’s an overall national picture.

Ok, so 26% is a record, but I have to ask, why isn’t it higher?? So why do 74% of American’s not get it?