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.
Real Estate Cycle of Sentiment
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.”
5 Stages of Market Grief (January 7th, 2008)
Lagging Psychology at Turning Points (April 15th, 2010)
Psychology Cheat Sheet (June 29th, 2010)