“However, I DO expect people to claim in Spring 2008 that we have started turning around, but they will simply be faked out by typical seasonal (relative) strength.”
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I just don’t think everyone is a savvy as the people on this site. Once they feel that the market is on the way up again, they will jump back in with both feet.This is not like the stock market rush of the late 90’s. I never really heard people excited after that decline to jump back into stocks once the market turned. Real estate on the other hand seems to be different. Most people I talk to are ready to move, and they won’t want to miss it again, even if it does not mean huge equity returns, but only an affordable place that they can call home. I also don’t think we are that far from affordability.