This is a welcome sentiment and even if the prediction is premature it will happen and probably sooner than later. We all are creatures of habit and the habit now is to think that housing values are going to continue to slide. But, there is an equilibrium point were the excess buying patterns and financing patterns of the real estate boom will be balanced by basic supply and demand no matter how stingy the banks have become in raising lending standards. The pendulum will swing back, but hopefully with less swoop than before. And maybe we will all be more cautious about making assumptions about real estate “always” going up.
Check out his hedge fund manager’s insights in the WSJ. Very interesting reading and if you’ve been reading this BLOG, it reinforces the notion that if you find a home in a neighborhood that you desire to live in, you should consider making an offer while the majority of buyers are scared of the market.
