The End of The Beginning
Headlines in today’s papers indicate that more losses are expected in financial markets from the sub-prime mortgage situation. Also, builders will suffer greater losses and are implementing strategies like mothballing developments and filing bankruptcy.
This is really good news. The market does not reach bottom until people stop saying the real estate market is going to turn in a little bit. Now people will get serious about the true losses rather than trying to hang on to the last vestiges of hope.
When you start hearing that developers tearing down mothballed projects then we will have reached bottom. It should take about another year to get there.