What's going to happen the second half of 2007?

For the past two years now, real estate has been slowing down in terms of sales, and price increases have pretty well come to a halt. In some areas of Orange County, prices have fallen back to where they were this time last year. I think this summer we will find more and more sellers putting their homes up for sale, and being more reasonable about prices. The ones who are just "testing" the market, will take their homes off the market by the end of the year. Interest rates will hold steady, or perhaps decline a little; which will encourage buyers to come back into the market when they see how interest rates improve their personal affordability. I believe prices will probably keep up with inflation.