carlsbadworker I understand your thoughts but there are alot of additional variables involved. If you take the long look at things, I do think that yes we could see the drops you are discussing at the end of the year. By the same token at the end of 09 or even into 10 and 11 we may see just as many walk aways if not more. It actually would not surprise me if in the spring of 09 we see a little bump…

Actually I do agree with urbanrealtor that we may see interest rates run down a tad later this year if we see a bond market rally. It is hard to say. I think we all agree that in 3 years the interest rate environment should be significantly higher. Honestly, I am surprised that as many people are buying now as I see buying. However the people I see/know who are buying, are not doing so because they think the market is at a bottom. They acknowledge more downside but they are buying for reasons that are more related to a lifestyle they want. Most of them are buying with pretty significant downpayments and with budgets that do not bulge due to the housing payment they are about to undertake.

This is not an endorsement for you to buy nor advocating a near term market bottom. Do what works for you, knowing that at least in my opinion we are far off from a bottom.