I get asked by people all the time "When will the market hit bottom?". There are MANY variables in this equation, not the least of which includes the recent Lehman, Fannie/Freddie, AIG meltdowns and the continued rate of foreclosure activity.
This is not an easy question to answer ("predict" is probably a better term than "answer"). I can tell you however that the lower end of the single family home markets is TIGHTENING UP - it has become increasingly more difficult to get Buyers to the table fast enough for well priced homes under $250K - YES - they are getting snatched up fairly quickly.
The chart below shows you the Months of Inventory for a few local markets broken down by price range. A Months of Inventory between 4-6 months represents a
…