The somewhat decent existing home sales figures out over the last few months may be due to the "Management" of the Delinquency Pipeline. As we all know there was a moratorium on foreclosures that ended in early April, which basically stemmed home price declines only slightly as well as made existing home sales seem a lot better. In hindsight, that might have been part of the reason why the March(Case-Shiller Index) number was so positive. The index improved significantly in March, as fewer homes were put on the auction block. There's been an artificial holding back of inventory coming into the market and when it comes back you are likely to see significant home price declines in the coming months.
You really cant believe anything you hear from the government these days without seeing the real truth. The truth is out there....its called "Google Search".
The only way to stop home price declines is time and an uptick in wages/employment, both of which we are not going to see until late 2010 at the earliest.
Home prices will stabilize when the banks don't want to foreclose anymore and actually want to work with consumers, this will only happen when credit quality improves, which again is not happening until employment improves.
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