Market Slowdown-Hoedown

So I was talking with some people today and they were asking about the RE market and what I think of the "slowdown" as if it was such big news. The market has been slowing since mid last july. I was reading an article on line and they were saying the same thing. as if this was a big surprise. http://news.yahoo.com/s/afp/20060730/bs_afp/useconomyproperty
In it they say people in contract now who thought they were in a booming market will be backing out. that's a load of crap. anyone who didn't see this train comming, was not looking around. Sure there's the folk that got on the band wagon late, but if they are that stupid, they'll likely go through with the sale. That's my 2 cents. They go on to say that because of this, the "real" housing inventory is much higher, really, I cannot see the people backing out of deals now, making a big difference on the current inventory.

Later they say that anyone who has any hope of getting out [of the market w/ their skin I suppose] has already got it on the market... They guy talks as if we've all lost our shirts already.

I guess my last point is this: everyone keeps talking about the over built situation. Las Vagas, San Diego, Florida. Well, certainly, San Francisco has built quite a few large scale condos, but SF I feel has really not seen that much building (relative to the other cities I've mentioned). Thus, My feeling is that while supply is up, I don't think it is going to be quite so devestating as some of these other cities. San Francisco, (thanks to our friendly tenants union) will for the forseeable future, be in need of condos. Especially, for those of the small scale variety (i.e. in less than 10 unit buildings).

well that's my 2 cents for the week.

Mike