If the market is tight on inventory (residential) then why do big banks still have large inventories?

In Selling Property - Asked by Joseph L. - Jan 18, 2016
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Answer(s)

k c.
Broker/Agent
Livonia, MI

The Big Banks finally started to listen to the agents, but as always they took a good idea and screwed it up !
In 2006 -2009 we told banks not to flood the market with foreclosures, they did ! The price fell to the bottom ! Then we said manage the inventory to balance the market. The Big Banks drained the market of inventory to force a shortage, and increase the prices ! Of course, this makes sense if you own the off market supply of inventory, make your balance sheet appear stronger ! In other words, this is just a financial game ! Good Luck !

Jan 25, 2016
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Joseph L.
Broker/Agent
New Port Richey, FL

The American Dream. Price illusion.

Jan 26, 2016
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