7 reasons why housing isn't bottoming yet & how it could affect you

From Ritholtz:

There are more reasons I expect the Real Estate market to remain punk for many years, but these are a good place to start when considering the question.

The Housing Boom & Bust, and the 2002-07 credit bubble created massive excesses. More than anything, it is going to take time to resolve them.

He details his ideas on Prices, Mean Reversion, Employment & Wages, Foreclosures, Inventory of which there is a substantial part of Shadow Inventory, Psychology, Debt Service/Down Payment & finally Deleveraging.

While planning on saving, investing, purchasing large items & evaluating risk vs. reward, it is clear the previous 20-40 years could be dangerous to extrapolate forward. His list is simply another example of the incredible challenges & opportunities that have been created recently. Extreme due diligence & caution will sooner or later rule the day.