REAL ESTATE: AT BOTTOM?

OBSERVATION:
Real Estate seems to be at a bottom.

• Inventory is high
• Long Term 30 yr fixed mortgage rates are low and stable
  
• Buying season is starting soon [most (or is it more) sales occur in spring and summer]
• Sellers are figuring that it is better to reduce prices to market than to continue paying interest for many months [or years] waiting for a sale [at last years valuations].
• Existing homes sales are slowly increasing still falling. Business Week coverage.
  

OPINION/PREDICTIONS:

• The slowdown may be coming to an end as government stimulus checks are going out in about 5 weeks.
  
• As usual the stimulus will probably be late and the economy will already be in recovery.
• This is the bottom and the deals will not be this good for some time [if ever again].
  
• As this becomes the sentiment of buyers [and vultures] they will rush in to get the best locations and values.

The next few months will be interesting...


Any thoughts on housing, interest rates or the economy?