There will always be homes selling, and buyers buying, and that is ultimately a good thing! Because it is this liquidity in a sinking market which propels the market to sink even further, until it reaches it’s bottom. Yes, people buying have there reasons, whatever they may be. They may simply be able to afford it, or they may, as pointed out above, be buying into the suicide loans, whatever the case may be, such buyers play an important part in this story. After all, they will buy a home priced lower than what the neighbor down the street is selling for, even though that home is still severely overpriced. Then, if the neighbor is motivated to sell, they will have to lower there price too…and so the dominos continue to fall. The point is, if you want to buy for sane reasons and not just because “I want to own my castle, etc. etc.”, than you will sit on the sidelines, pop the popcorn, and enjoy the show, all the while renting for waaay less than it would cost to buy with a sensible loan.
