"Do Sharp Cuts In Home Prices Spell Buyer's Dream Or A Trap?"

"Do Sharp Cuts In Home Prices Spell Buyer's Dream Or A Trap?," see http://www.investors.com/editorial/IBDArticles.asp?artsec=16&issue=20080523&rss=1.

Part of the article:

"The latest housing headlines look bleak. The supply of unsold homes hit a 23-year peak last month, the National Association of Realtors said Friday.

Builders have slashed construction, but still-falling sales and a flood of foreclosed homes mean a recovery in prices might be far off.

"We've dug ourselves a hole. We just have too many units hanging out there," said William Wheaton, director of research at MIT's Center for Real Estate.

But there is a bottom somewhere to the housing hole. Past slumps, especially in hard-hit regional markets, seemed desperate at the time. Still, areas such as California and Texas eventually soared again.

What should prospective real estate investors be watching to catch the inevitable upturn?

Sales and home construction have to stop falling, but that's only a first step, analysts say. The glut of unsold housing has to come down sharply before prices can bottom. And like the stock market, price is often your best indicator about real estate's direction."

.......http://www.JoeFROCKS.com/ .