Today it was reported that the nationwide sales of single-family homes and condominiums dropped to a seasonally adjusted annual rate of 4.89 million units. In November 2007 I posted that this was coming. See Post Here
The realignment is on target to reduce the record inventory, prices still have to fall. Joel Naroff, chief economist at Naroff Economic Advisors said "Eventually, sellers will end their denial and realize that if they want to unload their homes, they will have to cut prices even more." Lowes and Home Depot blame the weak housing market for a drop in fourth-quarter earnings. (Lowes 33 percent) Inventory has to reduce.
2008 is the year of Realistic Realignment. In 2009 we will begin to reap the benefits from this induced weight reduction program. (1) inventory will begin to reduce (2) prices will have realigned enough from the sellers emotional price to the new market price to encourage the buyers out of their nice warm caves of induced hibernation.
