The chief economist for the National Association of Realtors, David Lereah believes the downturn in the housing market since August 2005 was necessary and will be temporary for the most part and a needed thing to bring equilibrium back to an off-balance residential real estate market.  Though, he predicted a rebound in the next three to six months in most parts of the country, it was provided the Federal Reserve do not  raising interest rates again.

What makes him think that?  Unlike past market declines, this one is not caused by high unemployment, a sluggish economy, high interest rates or even natural catastrophe as we had ten years ago.  He believes in three to six months, the transition from a seller’s market to a buyer’s market will be complete.  He goes on to say: "We will experience a short price drop over the next six months, but every time it goes down it will bring thousands and thousands of buyers back into the marketplace," Lereah said.  I agree with that last point, at least in theory.

Is it wishful dreaming or self-fulfilling prophecies?  I see this market at this time being the perfect balance between buyers and sellers. 

Here is the article.