Considering we are dropping thus far at alsmot 1% a month – no I don’t think it’s likely.
Bear in mind these falls have been happening in primo selling season where sellers are still in denial – now we are into the winter wind down and panic will be starting to settle in for many people who have the sword of Damocles hanging over their heads in the form of ARM adjustments.
Add into that the first waves of ARM adjustments coming this winter / next spring – I think this thing is going to snowball – I suspect it’ll drop 10% YOY by December and accelerate down in the spring.
Also the Japanese had these things called “Savings” that are lacking in US financial culture – no wiggle room here to try and ride out the wave that’s coming.
