Housing Bottoms Out but Foreclosures Spike Higher

Those were the conflicting headlines this week. The cheerleaders who have been calling the bottom for the last two years, are still hiking up their skirts and dancing around with cheers of a bottom, to be followed by Good Times.

Reality vs. ObamaRamaLama - Those looking for reality this week saw headlines of foreclosure filings soaring. You see, you can twist things both ways. So the National Association of Realtors and the boys and girls running the ObamaRamaLama are telling the world that foreclosure "sales" dropped and prices are rising when you look at last year's numbers or some numbers they seem to have the ability to pull out of dark places.

Obama Magic - Over the past six months we had Obama telling the banks not to foreclose on homes and to do everything possible to continue to cover up the problem. In return, Obama promised the banks billions of dollars that they could dole out as bonuses. And it worked . . . for now.

July Foreclosure Filings Spike - What we are starting to see, and what we will see more of, is the tsunami of foreclosures that have been stacking up in bank back rooms. But now that the billions in bonuses are being paid out, watch for the foreclosures to flood the markets over the next 3-9 months.

Prices Rising? - I'm not going to spend the next hour talking about where prices are rising and where they are falling. Sure, there are areas where prices are rising in comparison to last month, but still 20-30% below a year ago. But once the flood of foreclosures comes to market, you can bet your last penny that prices will once again head South . . . hard and fast.

Oh, by the way, we lost another 500,000 jobs last week . . . but once again the financial markets celebrated that with an up day . . . and the banks leading the way. These are the same banks sitting on billions and billions in losses from foreclosures they do not want to acknowledge. Sooner or later the stink will get so bad, that they will be shut down . . . and the taxpayers will foot the bill.

Great Time to Buy? - Yes and No. I suggest you read this piece I recently wrote about how to find a Great Buy - Click Here

Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit http://www.floridahomes.pro/

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