I belong to a network of top Real Estate Agents across North America! I listen to a different interview with a different Agent everyday! Almost all of them report huge increases in active listings and half as many buyers. Most of them report the average times on the market have increased from roughly 30 days to anywhere from 120-180 days! Smart Serious Sellers (say that 7 times quickly LOL) must price their homes below what all the other homes are listed at, before the other sellers catch on and do the same in order to attract the few potential buyers there are out there! (just like buying & selling stocks) Prices will not stop coming down untill demand increases and supply decreases or a combination of both! Once inventory of listings begins to deminish then prices will have bottomed out! I've been thru this in the early 1990's. The market like this will probably take several years to staighten itself out! Most believe won't be till 2009-2010! Lucky
Only if supply remained constant or diminished. Problem is the homebuilders are still building! Soon enough, the homebuilders will be finished once and for all. Municipalities, starved for cash from the shortfall in housing starts, will resort to more draconian taxes (if they can't continue to bump the property taxes). btw, if you want to see if we are still in a housing bubble, check to see how many 1-2mil spec properties are listed for sale in your area. No builder in his right mind does that in lean times.
If inflation wouldn't save us from housing bubble; we are doomed. Inflation is only 2%; at least bond market says it too.
If you think the (wo)man on the street is thinking clearly about the current housing situation, perhaps you should read this Q&A from a post on justanswer.com As I read it, I realized that so long as the Fed keeps printing money there will always be someone that is willing to be the next victim. http://tax.justanswer.com/tax-liability/hfkv-husband-trying-buy-first-house