sdr I could not agree more with you. I accompanied some clients to some of the new developlments last week as well. It seems to me that the builders combo of price reductions and slow release schedule has worked out well. I do not think they are in the same dire straights we presupposed them to be. I completely agree with a slower depreciation cycle. I predict about 7-8% next year in the negative direction.
We need a major catalyst to move pricing. Hopefully the loan resets will push pricing down. I think the developers have covered themselves and they are reaching thier new equilibrium. Resellers simply are digging in thier heels (at least ones I have been dealing with) so that leaves the real work to be done by those who are financially strapped. I believe the spring will give us a big fat inventory push but I also think the bulk of those who don’t sell will simply sit on thier property rather then yield.
