- the bottom to fall out,
- prices to rise, or
- interest rates to go higher.
- Buyers need to understand the only thing they know today is what the rates are and what the prices are...anything else is a gamble!
- Sellers need to understand what the selling prices are today for they have no real knowledge of future inventory, unemployment potential with the end of the space shuttle program looming or how this will impact buyer ability (or interest).
Housing, like oil and most other commodities, is simply a case of supply and demand - supply of affordable houses on the market, supply of affordable mortgages, supply of willing buyers, etc.