Through prices were off nationwide about 1.5% for the last quarter of 2007, the good news is that closings for each month were down fairly uniformly from the same months in 2006. Prices were down in much the same way for the same period.*
So, while down, the decline did not seem to be as much for the last quarter of 2007.
Mortgage rates have dipped as well. Lower mortgage rates, combined with softer prices for homes simply means a potential rise in affordability. Everything thing else being equal, this may open the door for buyers to come back into the market.
We may be nearing a bottom, though there may only be a modest recovery through the rest of 2008. Real question is however, will it be a false bottom?
* Real Trends - 2008