I have been saying this all along and now the Harvard University's Joint Center for Housing Studies concurs.
The Northeast is likely to emerge from the housing slump before other regions of the country because:
We did not experience the same level of over building as other parts of the country.
We did not see the same level of drop in sales levels.
We did not see the same level of price drops.
The Northeast is densely populated with little open space. There was comparatively little low end "starter home" construction during the boom. Owning your own home is still the american dream.
There is pent up demand and buying will resume as soon as confidence returns. I believe the Wall Street Rescue Package will free up the credit markets and excite the stock market. The smart buyers are buying now before the media signals that it is ok to buy again. By the time you read about it in the papers, the bargain priced homes will be gone.