Foreclosures don't matter in housing recovery

But RealtyTrac's Rick Sharga, who saw no good news in his own report, begged to differ on the overall housing recovery:

" If we'd had this conversation a year ago, and you'd asked me if the housing market could recover simultaneously while foreclosure numbers were spiking, I would have said probably not, but we are seeing some data that almost looks contradictory. We're seeing increased levels of foreclosure activity, and we're seeing price stabilization at the same time. So it could just be that there is so much buying interest because the affordability levels have become basically record levels, and there's this inventory sitting out there waiting for the buyers. The market might be recovering at what amounts to the "new normal" level of foreclosure activity at least for the time being. "

HELLO!!!! Perhaps Rick Sarga should to "RealityTrac" to get a bit more info.

Now I know we all want housing to turn around, but just like all the new government debt, you must absorb the supply to bottom out and go forward. While the high number of foreclosures does mean we're getting rid of bad debts the report also points out new areas of foreclosures such as Kansas, Oregon, Missouri, etc... which reflect the consequences of the high unemployment.

Take advantage of the exuberant bullishness and sell all your stock holdings. As for real estate, there will be plenty of time still to buy cheap. Look towards 2010 thru 2012.