I was watching a panel debate on this topic last night (with my dog) and one thing became very clear, no one is clear on this answer.  Of course, when you have the company leaders of the countries largest real estate firms weighing in, they are almost obligated to put a positive spin on things.  Being in the real estate industry myself, I want to believe the worst is behind us.  Unfortunately, I do not. 

I do believe that there are rational arguments for why one would take either position.  Depending on where you live in this country, your exposure and the reality can look very different.  I happen to reside in South Florida, one of the hardest hit markets in the country.  Without getting into the dynamics of why certain markets and speculation played a key role that put us in this situation, I believe that the result has spilled over into the overall health of our economy and it will take at least another 2-4 years to work our way out of it.

I also believe that until we once again reach a normal supply/demand ratio in housing, the economy will remain vulnerable, as so much of our GDP is either directly or indirectly tied to housing and construction.

Until then, we have to work with what we've got and strive to make deals happen that move us back in the right direction.

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