Having just written my last post, I am reminded of how today's correction compares to the Real Estate downturn of the 90's. And more importantly why the worst may be over.

When buyers just walk away from the table prices fall. Buyer disappear for various reasons. Maybe buyers leave the state to look for work, maybe they loose their job and decide not to buy a home. Whatever the reason may be, when buyers leave the marketplace prices drop. This happened for 4 years in the early 90's.

What took 4 years in the early 90's appears to have occured in only 4 months in late 2007. The last 4 months of 07 were very quiet, there were very few sales and very few buyers.

This is not the case right now. There are actually a lot of buyers looking, not necessarily a lot buyers buying, but a lot looking. When the price is right, they pounce. Multiple offers are not rare for well priced homes or bank repo's.

So maybe it is possible that the correction that took 4 years in the early 90's has been compressed into 4 months, and that the worst is over.

I wouldn't look for prices to shoot up, but I hope that price stability is on the horizon.