Is it Economic or Psychologic?

According to an article in the Rocky Mountain News, foreclosures will be down significantly in 2008 vs. 2007.

There were 14 percent fewer completed foreclosures in the first nine months of this year compared to the same period in 2007, according to the report released on Thursday by the Colorado Department of Local Affairs’ Division of Housing.

It is the first time that there has been a year-over-year drop in foreclosures since at least 2003, when the division began gathering statewide data.

Good news indeed, but they are preaching to the choir.  We’ve been bullish on the Denver Real Estate market for almost a year now.  The foreclosure market in Denver, is only a piece of the overall market.  The numbers of Bank Owned properties contribute, certainly, but they are only a piece of the puzzle.

The real issue this market is having today, is Psychologic, not Economic!  The national media, has been pounding bad news into our heads for so long, that we, as a housing market, are scared to death to act.

Once the buyer population gets off the couch and into the game, the domino effect will be significant!

What do you think?