The main problem is that people are simply impatient. If people had longer horizons such as a few years rather then a few months then I don’t think there would be as much angst where we see posts complaining that prices are not reacting like they should or the market is irrational. The problem is that many people really really really REALLY want to own a home. While it is upsetting to see the median price reports come out monthly and sometimes they are up and other times they are down, it should not really affect your outlook. The latest lurch on Wall Street combined with the secondary market putting the squeeze on mortgage originators fueled some interesting posts here. I think it is nice to hope for large double digit drops in a few months, yet IMO if that does happen it will happen in the less desireable areas. Bugs had some good points… look at sales volumes, look at certain ratios… These are more telling then our untrustworthy median. Have lots of patience.
