1) Lower home prices - yes, prices are going down in the US like here and stock levels remain high. However, lower prices are creating buying opportunities which we haven't seen in several years and a base price is in site.
2) Interest rates are coming down. With lower monthly payments which accompany lower interest rates, homes are quickly becoming more affordable. The major snag of course is that credit is less available. The upside here is the larger deposits and stricter lending terms, reduce the likelihood of future repossessions.
3) There are signs of buyer confidence is returning. Confidence is low right now but the change to optimism can be quite sudden . Almost like a cloudy day autumn there will be almost disbelief when we see autumnal sunshine. When more start buying homes there will be a positive can have a positive effect on consumer and home buyer sentiment.
4) Now with Fannie and Freddie (the twin mortgage buyers) nationalised today we see the US Dow Jones up 1.5% today in the US as I write.
We may not be not out of the woods yet but i predict the US will lead the charge soon and we'll watch sentiment change here remarkably quickly.
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