I think the issue is economy. Its surprisingly resilient. Yes, people are losing jobs but unemployment is low. There are mortgage lenders going under everyday but then there are companies that are soaring (amylin, invitrogen, intuit?). I don’t know why but people are still buying homes. There are many examples of people losing their shirt on the houses but there are just as many who are selling at premiums even now (think north county coastal). I think if the general population think owning a house is too expensive, that’s not a bearish signal. When people are worrying more about their basic needs (food, rent, etc) that would signal a recession for me.
