I am going to repeat what I stated in December’s year-end letter, as I feel strongly that liquidity in the markets is very important for 2009. “I believe resales will have year-to-year monthly increases starting at the end of the 2nd quarter with new construction following two quarters later or the end of the year.
How much we improve will depend on how effective our government will be to improve liquidity and the ability to lend for our real estate industry.
If our financial markets fail in the ability to fund and fund all-types (conforming, non-conforming, jumbo, etc) of mortgages, it will be a very slow upward turnaround.”