In a Bloomberg Interview on Housing, Michael Feder, chief executive officer of Radar Logic Inc. says there may be as much as 5 years’ worth of housing supply.
Feder, speaking with Matt Miller and Carol Massar on Bloomberg Television’s “Street Smart,” also discusses the Obama administration’s efforts to prevent foreclosures and plans to overhaul Fannie Mae and Freddie Mac.
If the inline video below does not play, please clock on the above link.
Select Feder Quotes:
“We are terribly concerned with what is ultimately the pain hast to be taken. The number could approach aggregate mortgages 5 or 6 trillion dollars. The question is how much of that is overhang and how much of it has to be written off.”
“NAR says based on inventory and absorption rates we have little over 8 months supply. The reality which you add up all the houses for sale, houses vacant not yet on the market, houses underwater, seriously delinquent, in foreclosure, almost in foreclosure, the number is closer to 60 months, 5 years”
“Who is going to absorb the foreclosed homes?”
I agree with Feder’s analysis, and that is why I have stated that even if home prices have bottomed in some areas they are not going to shoot up anytime soon. There is no need to rush into buying a house in my opinion.
It’s an excellent video. Please play it.
This is a dated video
The timestamp I saw was more recent. However, I still believe the analysis is correct.
Mike “Mish” Shedlock
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