Thanks for the comments. Well… I wish I could give you a great opinion on this topic… but really I don’t think I’m enough of an expert on forecasting to give an extremely accurate prediction.

But, I don’t think values will rebound in most areas until at least late 2008… but more likely well into ’09. It’ll take time for everything to stabilize once again.

The rate cuts are nice for people that already have great credit and have money to put down… but financing for people that aren’t the “perfect borrower” is still kind of tough to get for most people. So, until the financing loosens up again… the housing prices won’t climb for a while.

In my opinion, the last housing boom was artificial… because it was built on demand pushed by people buying houses that had no business buying those houses… because of the loose lending programs.

So, housing will be slower to climb back up… but like it always does (and always will) real estate will bounce back once this cycle plays out.

So, investors need to realize that in this type of market… their strategy has to change. This is where you tie up and purchase as much real estate as possible (and safe)… and hold onto it for a few years.

Anyhow, as far as inventory… it will of course go along the same track as everything else… once people are able to finance these homes again… inventories will fall and prices will rise. Simple economics. But, when that will happen is anyone’s guess.

- Trevor

thanks in advance,
Alan