cashflow,
I dont consider 600 to 800 high priced areas. I beleive there are enough folks sitting on 100 to 200K of money that want to buy a nice home in a nice area to raise their family. $500K loans are still fairly easy to get by a HH with a $150K income which isnt all that much these days for a dual income HH or even one well paid professional. A $500K loan with a 30 year fixed rate around 6% is only $3000 P & I. At 6.5% it goes up to $3150. Add taxes, insurance and a modest HOA fee and your still under $4000/month with a real nice tax write off. With a $12K monthly income thats not all that tough.
I beleive supply will be low as folks hunker down into survival mode for the next few years and that the limited demand of buyers will balance well against limited supply of sellers. I dont consider my prediction to be for a bounce but rather a nice balanced, stable market throough this Spring.
