From what I am reading across the blogs, there is increased investor activity in certain segments of the market which is showing up as increased purchases in the data, albeit from volumes we have literally not seen since the 1970’s. I have no reason to doubt that, but it does make you think exactly how many all cash buyers are out there? It sounds to me that for people that really know what they are doing, there are profits to be had right now. I imagine at this stage of the correction much of this was to be anticipated. I don’t think that there has ever been this steep of a price decline in such a short period especially in the lower to mid tiered markets. I agree with Bugs when he pointed out that there were at least three mini rallies during the last downturn only to fizzle out. I guess you can call these bear market rallies. These rallies can be persuasive, not to compare the stock market to RE but Wall Street rallied to 13,000 off of the Jan lows, even I started to consider maybe the worst really is behind us. I am glad I didn’t put any money on that bet. I am on the sidelines because I think the credit crisis is going to be deeper and take longer to correct than what is being bandied about by the MSM and many pollyanna economists. Ground zero of that distress is Cal RE. I usually go with my gut on these things and my gut tells me this thing is far from over.
