I disagree about the direction of housing. This gets worse before it gets better, across the board, and into 2010. Historic unemployment is the driving factor at this point. Widespread job losses and wage deflation, terrible delinquency and foreclosure rates, a wave of prime resets still to come, large shadow inventory, tight credit and failing banks — all of it points to continued downward pressure on housing.
Overall, the banking/financial industry now overshadows real estate as the primary concern, situation is precarious and could lead to currency failures in the next 6-12 months. If the dollar goes up in smoke, what happens to interest rates, cash positions and dollar-denominated assets, pensions and retirement savings, business operations, inventories, employment rates, etc?
Anyone care to predict what happens to housing at that point?
