This is my first blog... so bear with me.
This is my analogy of our market:
This type of market is like a forest fire. It starts with one match and a few dead trees or bushes (sub-prime buyers who should have never been home owners) and you can have a fire beyond control. Fire can rage and engulf acres upon acres.(Foreclosures, Short Sales and REO's) Sometimes it take special equipment to get to the location of the fire due to the terrain but typically time, weather and resources (The Fed and Mtg industries making changes to lending) are the key to putting out a fire. Obviously more time, better weather and more resources are needed the larger the fire has become. The KEY is stopping the fire as soon as possible.
But that isn't always the cure to the problem. A new growth needs to occur to bring life back to the devastated landscape. (Qualified Buyers)
The wildlife that was calling that forest home ran away until it was safe and are waiting to come home (Buyers waiting for the market to become steady and were scared off by the media and other negatives of the market conditions).
You need a good rain, for several days to wash away the ash and get into the ground to help nourish the new plants waiting to grow. (lower interest rates or even higher FHA limits -Woohoo, we have that!)
Then the growth will occur, it's only natural. You can't re-grow a forest with burnt trees. Once the forest regrows the animals will return to the home that they left because they know it is safe again.
It doesn't happen over night. In fact some areas that have been scarred by fires will sometimes stay like that for years to come and it will take them a long time to thrive again but others will re-grow and after a few years, you will never know that there was a fire.
Don't' just be a fireman! Be a fireman and a gardener and Smoky the Bear, so that way we can be sure that this fire doesn't rage again.