I've included this chart below because I believe it illustrates very clearly the National housing outlook. It breaks down the market and makes it clear to see what happened last year in comparison with this year and what NAR forecast for 2008. The very bottom category catches my eye the most because it shows home prices going up in every year except for this one (2007). This year we've seen losses and it is because the market we are currently in is a 'correction.' Historically this has happened before and it is because the preceding years to the corrective market home values escalated out of control. The NAR forecasts that we are near the end of our correction and that home prices have bottomed out. Once buyers become aware of this they will begin to buy. They're waiting to get the best deal at the best price.