Housing: have we reached the "point of maximum pessimism"?

Blanche Evans of Realty Times thinks the most of the bad news in housing has already been built into the market; she was interviewed on iTulip a couple of years ago, predicting a downturn but also saying that housing would be supported by the government, to some extent.

Benjamin Graham said we should “buy from pessimists and sell to optimists”. The smart money has done the second part, maybe it should look out for the first soon.