What realtors really mean when they say they expect housing prices to stabilize

Hat-tip to HP reader Jeff for this article today from up-state NY.

My question is, when the realtors and builders are continually having to justify prices, and tell people not to panic, why? Are they sensing prices are too high? And that panic is in the air?

We'll see more and more of these in the coming days - where realtors give their "expert opinion" and say things like "don't panic" and "we're seeing the market come back to reality" when what they're truly saying is "holy crap - we're in major trouble here" and "there are no more suckers left - the market's crashing". Lots more fun quotes in this read, including these gems...

After defying economics and reason for several years, the housing market in New York's northern suburbs is coming back to reality (translation: house prices are going to crash - the only way to get back to the mean)

"The market is in transition," said Kevin Joyce, president of Joyce Realty and a former president of the Rockland County Board of Realtors. "It is regaining some balance, and returning to more normal conditions." (translation: to get to normal, we need to crash)

However, they insist there is no reason for panic and stress the market remains healthy. The consensus is that sales and price increases have slowed, but the market is in no danger of collapse (translation: it's time to panic, the market is post-peak, the last suckers in are getting killed, and there is a 100% danger of collapse)

Unfortunately, due to interest rates, higher gas prices and projected higher home heating costs, buyers are becoming more cautious and wary. We are already seeing many price reductions across the board in all price ranges (translation: the only way to move a house now is to dramatically drop the price, cause there ain't any more buyers)

"If we have a correction or a return to more classic times, it will be a positive move for the market. It will entice buyers back to take another look," Lindsey said. (translation: a home price crash is a good thing - really!)