Lindsey: I do think the market will stabilize at the end of this year. But I also believe that things for consumers will get worse before they get better. Boatloads of ARM's are yet to adjust and that may add to the inventory of homes listed. Tighter lending standards are making it difficult for many people to buy.

However, Investors are coming back into the market to buy up REO's so the inventory should not be affected too much in my market. In addition the buyers who do qualify will have better chances of keeping their homes for the future. Thus not adding to the inventory in the future due to foreclosures or short sales.

A contributing factor to the situation we find ourselves in now is that many buyers who are now home owners were given loans that some lenders knew were not right for the borrower. Causing defaults, foreclosures, rise in inventories, etc....

Have faith and hang in there. It is always darkest before the light.