It looks as though new listings are still running at about 3:1 over closed sales and new contracts. Not a good situation if you are in the "gotta sell" crowd.
I watched the video clip of Jim Cramer having a meltdown over the drop in the market due to the loss of confidence in the mortgage backed securities. He made some sense, from the viewpoint of an investor who knows that the market will ultimately be unable to sustain its growth rate and must subside for a time, and who doesn't want to get caught with a portfolio that he cannot sell for a profit or at break-even.
Unfortunately, markets must rise and fall periodically. My Prudential stock has taken a 20% hit in the past month, and while it is up some since the reaction to last week's announcement that the company now thinks the sub-prime market is undervalued, I am questioning my own wisdom in holding on. With the Alt-A lenders now coming under pressure, borrowers are feeling the squeeze as the equity lines they used to buy new SUVs and take vacations are drying up.
I'm trying a new tack in finding blog fodder. Letters are being sent out to local attorneys, inviting them to submit questions they have about the appraisal process. I will then research the answers, and maybe all of us can end up a little smarter.
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