I have personally tried to persuade some banks to open up the flood gates, release their non performing assets and take the hit. Nothing doing. They are not convinced. They really believe the upturn is just round the corner so why pass on any benefits to the likes of I.
Personally, I think the banks are insolvent and cannot afford to write off the amount needed to start selling again. Hence we have a tactic of creating a “no market”. If you dont sell at a loss, its not a loss. As it stands, they get time to write down these loans on their books whilst they recapitalise and the properties only lose 20% after 12 months. The reality is they need to reduce by 50-60% to start the sales moving.
Thats my take on it. As ever, could be totally wrong.