Here's his answer:

I would like to say that a turnaround is imminent but there is nothing in the data or in conversations with industry contacts that would suggest a turnaround. I have heard that in the most sought-after zip codes there have been signs of price stabilization and sales have improved. In addition, there has been some activity this spring. However, it is still too early to say if that activity will be sustained -- we experienced a similar pickup in activity in 2007.

There is still a significant imbalance in terms of supply and demand in the market, and it will take some time to work through these imbalances. Inventory levels of homes for sale remain very high, delinquencies and foreclosures continue to rise, and prices are declining in many areas. To underscore the inventory situation, in the Baltimore-Towson metropolitan area it would take 13 months at the current sales pace to sell a single family home. This figure is up dramatically from 2 months during the years before the housing boom. The question for 2008 is how much further will prices need to adjust in order to clear the excess inventory on the market.