I think the majority of people are just out of touch with the way our economy is going. I'm sure i'm like the majority of people in America. I consider myself to be a middle-class average citizen and money is tight around my house. The reasons? Simply because food and gas is more expensive. The economy shows improvements in the housing market and I'm personally not shocked. Each year we see drops in the winter and improvements when tax time comes around. My prediction is that we will not see any major improvements but will see continued slow improvements while people are getting tax returns and have the funds to make the move. I suppose this is an improvement, but I suspect we'll see a drop again by next fall. What do you guys think? http://money.cnn.com/2008/03/24/news/economy/existing_home_sales/index.htm?postversion=2008032412
I think prices will bottom out shortly either late this year or next year and which point the banks can better gauge the value of their bonds that they hold and the economy will recover as well the housing market.