glad that the only thing you are questioning is my interpretation of owners possible emotions, which of course neither of us can really know.
you point to lack of mortgage defaults. you must have missed the first part of my post where i point out that although the primary driver of the bubble - credit demand - has slowed dramatically, prices have not yet dropped and then go on to posit that perhaps people don't know what do do.
perhaps the giant container ship that is the market is gliding forward, propellors in full reverse and slowly going about changing course? perhaps its just stopped off for a refuel and about to continue on its merry way?
who knows. however, based on declining credit data and my theory that credit is the main reason that house prices are many many multiples of annual income and that rising credit is required for the market to stay on trend, i have chosen to predict that it is changing course and am planning my invesetments and capital allocation accordingly.
