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Forget about months of inventory.  How about years of inventory? 

Seven years of ultra high priced inventory, to be exact.  According to numbers quoted in this story by Carla Wilson, there are now over 7 years of high priced inventory on the market in Victoria, when $2,000,000 for a property is considered as a starting point.  Projected sales of 13 total for the year for the region with 97 listed at the moment in the same area?  Ouucch.

Ozzie thinks the US Bail out will drive our assets higher.  WHAT IS HE TALKING ABOUT??  Inflation will give a higher nominal price.  That doesn't mean the asset is actually worth more does it? ...(no it doesn't) 

Ooopps, the bail out failed on the latest try?  Look out below, Ozzie!

The total debt will exceed the total value of the collateral.  Ouch.  Nice choice of graphics to illustrate the points. Thanks Itulip.com.

Single family home listings total 1534, condos total 1204 and townhouses are up to 445 units listed on the MLS in the VREB area.  Million dollar plus properties are at 364. Yes, that's 33 plus months of million dollar plus inventory wishing for some buyers.

Ian Watt has some interesting blogs from time to time, but it sounds like he only gets half the equation here - he heard what he wanted to hear, because he's trying to sell condos.  If the majority of empty nesters are downsizing -- WHO IS GOING TO BUY THOSE BIG HOUSES AT PREMIUM PRICES?

It's clear from the stats thrown out there by Ian referencing CMHC there are nowhere near the number of first time buyers necessary to absorb that inventory, and even if the numbers were right, that set up is all wrong.  First time buyers generally don't start into the market buying the biggest most expensive properties available.

This "Months Of Inventory" (MOI) snapshot was based on MLS searches done for the VREB area on September 19, 2008.

Single family home listings total 1528. Condo inventory is down a bit to 1204. There are 435 townhouses available along with 367 million dollar plus properties. What's stunning is that, with terrible sales all around in August, million dollar plus inventory is now a shocking 33 plus months. Do these people really think the current market is going to bring bueyers to the door at absurd asking prices? Dr Evil needs to cast a spell on some buyers if all these sellers have any hope of getting close to their asking prices.

Expensive upgrades now included, prices down a hundred grand, too much inventory and a correction or two in the offing.

However, Ozzie offers the caveat that huge unreported inflation makes buying a house a good idea at this point.

Oh really Ozzie, do tell...

At some point real estate reaches such a point of detachment from reality that we see things like this while cruising the MLS: realtors trying to market a house based on a catch phrase from a cheesy movie franchise. What buyer is going to drop this kind of coin on a 900 sq foot house in Rock Bay? A house with water frontage and moorage, but in Rock Bay?

This is not an April fool's joke. I stitched together two screen shots of the same MLS listing, taken yesterday and today.

Now the listing has been "corrected", and the price was lowered by over $100,000. Bring on the further price drops and zany marketing schemes; thanks to your clever Dr Evil marketing spin. Your fantasy is our reality.

At a party I went to today, someone commented that in Phoenix, it's now buy one house, get one free from developers.

Changed my hosting provider and not much time to re-implement the site the last few weeks; made a few false starts along the way. Spent my days looking at houses and stunned by the latest financial turn(s) of events. Maybe that $500,000 house will be selling soon for $425,000. Soon, as opposed to eventually. More to follow...

Peter Schiff unloads for an Australian audience, pulling no punches.

What, me worry?