Foreclosure-gate, Home Values, and Employment

By now you've seen the news reports that the foreclosure mess has actually caused home prices to rise in certain (judicial) states because REO inventory has been pulled off the market, thus reducing the pool of homes that are for sale. But keep in mind that whatever moratoriums are still in place, won't be for long. The Republicans are poised for big gains in the national election and you can bet the house (so to speak) that the new Congress will not look favorably on any federal intrusion on states rights in regard to foreclosures. Will there be a push for national standards for foreclosures? Don't bet on it. With the GOP in power, it just won't happen. As for the housing market, rates alone do not drive valuations. The big determining factor is employment, and come Friday, the nation will know whether all that government spending is finally working when the Bureau of Labor Statistics releases its new numbers. I will say this: it appears that the foreclosure departments of many servicing shops are hiring…