Thread: Delinquent Mortgages Equal to Three Times A Balanced For-Sal

Delinquent Mortgages Equal to Three Times A Balanced For-Sale Inventory

2009 November 20
by Michael David White
A Flood Will Humble Thee

Eight million homes with delinquent mortgages represent a staggering 300% of the normal supply of existing homes for sale. With 3.63 million units now on the market, one million above the long-term average, an inundation of foreclosures represents a fatal death blow capable of inflicting brutal damage on the largest financial market in the world.



The inventory of existing homes is now over supplied by one million units – an excess almost identical to two months of sales. The delinquent mortgage accounts represent an additional 17 months of sales.

If all mortgage delinquencies and current units for sale are combined, they represent 24 months of average sales. A rule of thumb says six months of supply is a balanced number of units “for saleâ€

This is so tragic.