You’re wrong on that...The supply ( inventory) is there..and so is the demand..but NOT at the current prices. They have to fall further, across the board...many more foreclosures have to ocur..the maket is artificially inflated...
My point was there is way too much inventory. Houses were way over built in the last decade. That and the associated debt are the root cause of the housing mess. Government and banks are doing everything they can to keep prices up while there is way too much inventory which is in conflict with basic market principles. That unnatural state of things is where we are. Yes, housing is going to have to further correct - because of over supply. Until that oversupply is finally consumed the housing market won’t be “normal” again.