M Delury posted on October 28, 2011 14:27
Contract signings are a good indicator for the direction of Housing and Real Estate Pricing and Values. The reduction in interest rates did NOT generate the sales one had hoped for and expected. It would be safe to assume that housing prices still need to come down a little. Normally as rates drop the cost to rent vs. home ownership gets closer in numbers. People are hesitant to take the plunge because of the JOB Climate and the overall uncertainty in the market. If the Stock Market is one indication, the late October rally was the best October since 1974. Normally October has been noted as an Historical down month. The Crash of 1929 and 1986 (Black Friday) both occurred in October.
The belief is that prices are at or near the bottom, but so are the interest rates. If rates rise then housing prices will fall.