What we need are for all the REO properties to hit the market. Moreover we need all the properties in default to go REO. Finally we need all the properties (and there are ALOT I believe) that are not in default but SHOULD be in default.

We need a serious inventory adjustment. I am not as convinced about the new sales being as investor driven as many seem to believe. In fact I think that the percentage of buyers that are investors are surprisingly low. I believe that would apply to SFH more then condos. Note that this is a speculative statement.