Homestead mailing list

[Gene GeRue <genegerue AT ruralize.com>]

> Gene, do you really believe the worst is over?

Yes, I believe the real estate market is well along in its cyclical 
self-correcting mode. The primary issue today is oversupply. Builders 
will continue to do whatever it takes to reduce inventory and get 
construction loans paid off so they can become prepared for the 
inevitable next wave.

Prices are important but secondary to oversupply. Prices were moving 
too much faster than income. If the Fed finds that the economy is in 
danger due to real estate market conditions it will lower their 
already low interest rate to stimulate the economy. This will allow 
yet another wave of refinancing.

And the beat goes on.