No housing recovery until 2011

Home prices are down, and housing inventories are up.

Why? Too many houses for sale and not enough buyers. Most of this is due to the foreclosure glut.

Banks have 70% of homes foreclosed upon sitting on their books as an asset in place of the loan receivable, because if they sold them at market they'd take a huge loss and would show they're insolvent. These homes are not yet in the multi-list as homes-for-sale.

What happens when these homes finally hit the market? It will further suppress home sales.

This also shows how banks are really insolvent, inspite of TARP funds. Nothing is doing to stop foreclosures, so there will continue to be real problems in the economy until this problem is solved - or - until time takes care of the problem through the normal market forces.