[quote=donaldduckmoore]The truth is there are lots of buyers (you may prefer knife catchers). Bottom or not depends on the performance of our economy. You know the Fed is trying everything to save the housing market. If inflation is no longer a threat, they will make interest rate stable and low for as long as possible and the bottom will be near. The current inflation is all driven by oil price. You know that oil price is not moving up recently and stronger dollar also suppresses rising oil price. If they have the trick to do all these, then the housing market should not be looking too glim. It is all psychological cycle. Just my personal opinion.[/quote]

A. The fed can not save housing.
B. Who says inflation isn’t a threat?
Just because a gallon of gas is now in the high $3s and not the low $4 doesn’t mean inflation isn’t a problem. BTW $115 per barrel of oil is still up about 100% from early 2007 prices… hardly a sign of moderating inflation. Food prices are still way up. Check it out http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-foodprices_25bus.ART.State.Edition1.3f90971.html
C. It is all psychological, I agree, but the economy isn’t doing so hot, and as you say if housing depends on the performance of the economy.. then housing won’t bottom anytime soon.