A couple things could help to save the ship including lowered Interest rates, continuing strength in the economy and lender bailouts of over leveraged homeowners but the bottom line is there is nothing more important than supply and demand. Demand is holding up surprisingly well and so far the inventory is suprisingly low as well this year. Inventory in my area is actually lower than last year which stuns me. I’m not betting one way or the other but if you made me guess I would think we will end up a stagnant market where a very high percentage of sales are distressed. In that case good deals will be easier to locate then good properties.
