In an article posted on Forbes.com on Jan 28, 2009 the objective of seeking out poor markets is highlighted in stats in this article.
This week saw signs of health in the housing market as existing-home sales rose 6.5% in December. As sales have increased, prices have fallen, down 15% to $175,400 for the median home. Home prices are now approaching 2004 levels, which is about a year after the real estate bubble started to form.
That means that home prices could have further to fall. Some of the most bearish analysts out there, like Forbes.com Investor Team member Gary Shilling, believe that home prices could fall another 20% before they begin to recover. But as they fall, and if mortgage rates remain below 6% (and the government can use Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) to achieve that), then sales could continue to pick up.