Todd, a reader and commenter on this blog was nice enough to provide me the chart above. These are his views on the Sarasota real estate market. It is difficult to read because I had to shrink it to fit the page. See the chart below for a clearer picture. Todd's chart shows a longer bottoming out period. He also thinks we are in the desperation phase or just leaving it.
Personally, I think we are somewhere in the capitulation/despondency period. Capitulation is associated with "giving up" any previous gains as home owners sell in an effort to get out of the market. It basically mean surrender. A few signs of surrendering are homeowners giving their homes back to the bank as well as financially strong sellers taking their properties off the market for better times.
Despondency means homeowners are feeling or showing extreme discouragement, dejection, or depression. I am seeing a lot of that out there as well.
Any other opinions?
Leroy
The white flags are waving. Capitulation IMHO.