I’ll ignore the subtle implication that all housing bears are doomsdayers and point out one element that I think alone answers the question:
Foreclosures – they take roughly 6 months to reach the market. May was up 90% YOY nationally, CA has 1 in 300 foreclosing, mostly in the cooling markets. People here know this.
The word “stabilized” means nothing. Supply/demand are far more relevant. If inventories (currently in excess) stabilize in the excess, meaning the number of months supply available remains constant, prices will still fall.
