The LATimes has a classic end of year article.
Despite the scary statistics, things could be looking up in '08
By Kenneth R. Harney, Washington Post Writers Group
December 30, 2007
WASHINGTON -- Queen Elizabeth II once famously referred to her annus horribilis -- a horrible year during which almost everything went badly, from royal family scandals to a raging fire that destroyed parts of Windsor Castle.
The U.S. housing market experienced its own form of annus horribilis in 2007 -- a year when all the sins and excesses of the prior six years were visited upon nearly everyone in the system:
Enough. Could 2008 be better? I think the odds are reasonable that it will. Here's why: Even through the grimmest headlines of 2007, there were a number of positive underlying economic forces propping up real estate. If those forces continue, they should help cut the time needed for the correction cycle to bottom out and the historically inevitable recovery cycle to begin.
Happy New Year everyone!