DWCap, you’re right that you can interpret things to mean that the rate of decline must slow, instead of the bottom must come sooner. However, given all the issues, (still plenty of foreclosures in the works, many which haven’t hit the market, looming crisis with option arms, probably recession coming, etc) I don’t see any reason for the rate of decline to slow.
Can you give some solid reasons for the rate to slow? I’m certainly open-minded about this. The only reason I get from people about why it will be 2011 before the bottom is that in the last downturn it took that long. Fine, I can accept that, but it’s not a given that this time will be the same.
The only thing I think that could slow the rate of decline is if we get a good bit of knife catching in the next couple of months. However, with all the fear that is starting to spread, I’m suspicious that there will be more foreclosures coming onto the market than knife catchers, so that won’t slow things at all.
