According to a survey of 51 economists done by U.S.A. Today, the bottom of the housing market is only 6 months away. It is also important to remember that this is the first time in 50 years that housing has decreased nationwide for 2 years in a row. The housing market, as with all markets in general have a way of overcorrecting once they've become imbalanced. Anyone who has had to become a seller during the past year and a half has been hit the hardest. There is currently a six month supply of housing on the market and with housing starts down dramatically, a recovery should be in place come the latter half of 2008. This provides an excellent opportunity for those wishing to build as they will be able to get in while prices are still down and take advantage of the rise in prices that will follow. 

Another positive is the aggressive action by the Fed. Reserve Federal Chairman Bernanke is well suited for the task having studied the Japanese economic collapse of the 90's and is resolved not to make similar mistakes. He has created an innovative way to get money back into the banking system by offering up auctions where banks receive money without panicking their investors (70 Billioin to date). Dropping rates a full 3/4 point last week with more to come proves that he is willing to take all necessary measures.

The silver lining in down markets is that they can also create opportunity to those who know how to recognize the situation.