Economy watchdog Tim Iacono touts Bill McBrides blog, Calculated Risk, as a reliable resource for housing market predictions, and McBrides latest post The Housing Bottom Is Here has Iaconos attention. Iacono notes that McBrides blog was one of the few that identified and provided warning for the 2004-05 housing bubble that lifted Southern California home prices only to watch them plummet, giving supposed credence to more current predictions. Much like McBride in his own blog, however, Iacono stops short of suggesting that he, McBride or anyone else can predict what will happen in todays U.S. housing market.
While the debate about whether the U.S.
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So what is going to happen with the housing market?
Many people want to repair their credit so that they can actually buy a house and the truth is that the housing market affects us all, whether we rent or own, the housing market affects you unless you are living under a viaduct and if that is the case then housing is even more important just not accessible.
So what is going to happen with the housing market?
Well, interest rates have increased to about 5% up from 4.61% last week. Some analysts’ suspect that the rising interest rates will spur some buying because of the fear of rates raising even more and 5% is still relatively low. House prices are also down, so the combination of low interest rates and low house prices may be a good sign.
Except that house prices are expected to decline further. Several million homes are still in the foreclosure pipeline and have yet to hit the market. If they all hit the market around the same time, supply will be up, prices must come down, that is just basic economics 101. <
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— Thomas Potts @ 4:51 pm — 
February 8, 2012