Housing Bubble will Not be Reblown; Foreclosures Increase in 154 of 206 Metro Areas with Population Over 200,000

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There will be additional pressures a few years down the road when empty nesters and retired boomers start looking to downsize. Who will be buying those McMansions? Immigration also comes into play. If immigration policies and protectionism get excessively restrictive, that can also lengthen the decline.

Finally, note that the current boom has lasted well over twice as long as any other. If the bust lasts twice as long as any other, 1012 just might be a rather optimist target for a bottom.The Last Bubble is Not Reblown

In a few locations, the bottom may be close at hand but certainly not everywhere. More importantly, think of tech stocks and remember the creed “the last bubble is not reblown”. Ten years after the tech bust, the Nasdaq is still down over 50%.

The recovery in housing will be even slower. There is no need to rush into housing at this point even IF the bottom was at hand.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
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