Looks to me that home buyer's psychology may begin to change if another reduction in interest rates takes place next time the Feds meet.  Can it get any better?  Lower rates together with daily increased inventory certainly is pointing towards 2008 being an opportunistic time for buyers to finally realize their dreams of homeownership.   Affordable financing, lower home prices and sellers willing to negotiate. Just might be a good time to move-up too if a homeowner has owned their home for some time and looking to buy in a more expensive Los Angeles neighborhood.