1. The Federal Open Market Committee (FOMC) Will Continue to Lower Interest Rates
This will continue stimulating the economy, keeping unemployment low in addition to helping ARMs reset to lower interest rates.

2. The Economy is Creating Jobs and Unemploytment is Low
The last two housing downturns were due to recessions in the U.S. economy (80-81, 90-94).

 3. Lenders are Helping Homeowners with Loan Modifications on ARM Resets
 This will decrease the number of homeowners needing to sell or going into forecosure.

4. Subprime ARM Resets Peak in 1st Quarter of 2008 with Minimum Resets by Year-End
This will continue stimulating the economy, keeping unemployment low in addition to helping ARMs reset to lower interest rates.

5. Home Builders are Dumping Standing Inventory to Remove Inventory off the Books by Year-End
The completion of the resale market will be greatly reduced.

6. Sellers of Existing Homes will Take Their Homes Off the Market at Year-End that Don’t Need to be Sold
Combining this with those that need to sell and lowering their sales prices during the holiday slow period, will cause the months to sell inventory to come down.

7. Credit Markets for Jumbo Financing are Opening Up
The spread of the interest rates between conforming and jumbo loans has been greatly reduced. Many programs are still available making it easy for buyers to qualify.

8. Fires in So. California Will Create Construction Jobs and Help Supporting Industries
California has been losing jobs in this area. This in itself will keep a cap on the unemployment rate. Furniture, appliances, landscaping and architects will benefit.

9. Real Estate Investors are Stepping Up and Making Offers
Mostly absent in 2007, Real Estate investors are stepping up to take advantage of the foreclosures and lowered prices.

10. Buyer Sentiment of Those Waiting Will Change as Foreclosure Reporting Lessens
There are so many buyers waiting for a sign as they fear prices will continue down. The sign will be decreasing foreclosures and inventory time to sell reduced and reported by the media.