Housing Stabalization?

Are trends beginning to shift in the real estate market?

The prices of homes continue to drop because sellers (and banks) seem to be desperate to sell.  The large reductions in price are having noticeable affects in some markets are beginning creating considerable increases in sales volume. 

These price declines have also helped stabilize several ratios that are used in the housing market: price to rent, affordability, price to income, etc.  Some experts believe that we will continue to notice these trends throughout the year due to the fact that the housing market is flooded with inventory.  Mike Larson, a real estate expert for MoneyandMarkets.com, predicts the sales volume to stabilize within the next year.  With the stabilization of sales volumes, he also predicts that supply will become stable. 

The silver lining is that real estate remains a solid investment and the conditions will only get better with time.