In light of the latest Case Shiller data was out this morning, I wanted to draw your attention to a fascinating chart from the Irvine Housing Blog.

Its a Real Estate focused variant of the market cycle/psychological chart we have run in the past. I have annotated it in red, to show where we are.

Note what they call a bear rally is actually just the result of government programs, mortgage mods, HAMP, etc.

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Real Estate Cycle of Sentiment

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Irvine Housing Blog interprets the chart as “a sign that people are clinging to the hope of a real estate recovery. We are not yet at the bottom.”

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Previously:

5 Stages of Market Grief (January 7th, 2008)

Lagging Psychology at Turning Points (April 15th, 2010)

Psychology Cheat Sheet (June 29th, 2010)