Since the market was overinflated it didn’t take a genius to see a downturn was coming. And I’m not a genius concerning the housing market...or any market. But it makes me shake my head to read the doom and gloomers predictions of utter catastrophe because of the dip. Yes folks, we’re doomed...no doubt about it. We’ll all be living in tarpaper shacks and holes in the side of the road. No one is ever going to buy or sell a house again. None will ever be built anymore. Get out your tin cup, and practice your begging techniques.(smirk)
I think the most pessimistic assessment from major housing economists is that inventory will peak in the 4th quarter of 2007 (which we are in) and prices will hit their trough in the 4th quarter of 2008. After that prices will stabilize and begin to rise, depending or which market you’re in. The 4th quarter of 2008 will be four yours exactly since the housing recession began. You may not see any noticeable increases until the 4th quarter of 2009 in most places. But at least when you have to sell something you can do it without a sense of panic.