"And now for the heartwarming side of the housing bust: It's helping some people buy homes that they couldn't afford a couple of years ago."
At some point, more people are going to jump in the housing market and we are going to see a rebound that I think is going to catch everybody off guard.
"Still, many potential buyers are holding out for better deals. The Wall Street Journal's quarterly survey of housing-market conditions in 28 major metro areas points to continued downward pressure on prices in much of the country. . . In most of the country, inventories of unsold homes are no longer growing quickly, as they did in 2006 and 2007, but remain huge."
Key reason why home prices are declining and keeping buyers on the sidelines:
"Homeowners hoping to do a short sale sometimes advertise very low asking prices to lure buyers, even if there is little chance the lender would accept bids at that level, Mr. Odio says. The "ficional" asking price, in turn, misleads potential buyers about the value of nearby homes."
Plus, check out this interesting chart on where housing is headed.
Source: By Ideal Investment Corner