I don’t know why you guys think there is so much money on the sidelines. The reality is, by this point nearly everyone who really wanted to buy a house already has. That is why the home owership rate is at an all time high! With the recent lax lending anyone with a heartbeat could buy a house.
Who is left on the sidelines? First time homebuyers of course but they are effectively priced out of the market until home prices fall dramatically. The only other group would be those of use who cashed out of the market and are waiting for it to crash. We are in no hurry to buy now. The move up buyer market is drying up because they realy on first time homebuyer to purchase their homes. Speculators are finished..
