Global Warming Examiner

NAR's Lawrence Yun Continues to Mislead on Housing

The two extremes: things are much better than you think and the sky is falling.
The prices are going to come down/ be weak until supply equals demand. This will happen when the overhang of people needing or wanting to sell their homes is cleared by people who have a chance to buy more now more affordable homes. The Fed is doing all it can to create easy money for people to buy homes by making mortgages more affordable and increasing inflation which will drive up the value in dollars of real assets like homes.

Are home prices weak - yes
Will home prices keep dropping - maybe
Will home prices fall to 1999 levels - not with current Fed policy

Probably a good time to start looking at the builders again, especially the strongly capitalized ones.