Possible scenario,
It is possible that there will be some really good deals next year. I believe more strongly that sometime in 2009 this will be true. It won’t be the kind of stuff most people want and it will take time to sell or go at auctions. Investors will be a good portion of the buyers involved and they will be waiting for, or forcing the market to deliver homes that “Pencil out”.
Other housing deals will continue looking pretty ho hum ,especially relative to job prospects and interest rates,and other domestic finance issues, so a “bounce” back will be precluded from occurring, even though some will be “getting ahead with RE again”.Some people will be buying and only going modestly under water from their entry point. No big deal for most of them.