Whitney Tilson of T2 Partners has done the most extensive public work yet on the housing crisis. Even better than that, the conclusions he came to over a years ago were 100% accurate.
For those who do not wish to read the whole presentation (I suggest you do), here is the most applicable slides (click to enlarge):
Simple explanation is that we are about 1/2 way through this.
We have spoken about housing here before and nothing here changes our outlook, a recovery is a year or more away. Now, by recovery I mean stabilization in prices and sales, NOT a return to prior levels. That type of recovery will take the better part of the next decade.
Whole Presentation:
The Housing Crisis: By T2 Partners
Disclosure (“none” means no position):