Amazingly, markets continue to function, as they have for soooo long. And this comes despite politicians’ warnings of an “imminent collapse”.
Today, a widely-ignored report on home sales in Southern California showed an impressive gain over the last year.
Southern California home sales rose 65 percent in September, the biggest year-over-year increase in at least two decades, as buyers took advantage of foreclosures to purchase properties at discounted prices, MDA DataQuick said.
It can’t be anymore basic. When prices fall, demand rises, and buyers emerge.
“The prices are low enough that people who would normally not be able to purchase are buying,” said Stephanie Martin, owner of Champion Realtors, a San Bernardino-based residential brokerage.
A foreclosed home with three bedrooms and 2 1/2 bathrooms in Fontana, California, that Martin sold for Ocwen Financial Corp. this month attracted more than a dozen offers and sold for $25,000 more than its asking price, she said. “The buyers are out there. They’re looking.”
So instead of messing with the markets, let’s just leave them be; let them work.