Housing Market "Falter" and Future Trends

[Jim Froehlich]

Smart Real Estate Market analysts please step forward!  My head continues to hurt as I read through where we are in the real estate cycle and where the safe money is going for next 5-7 years.  WSJ post article titled: "Housing Market is Faltering and Strong Economy Offers No Cure".  Some of the reasons didn't seem to make sense to me.  One factor blamed was the big tax cut bill...the claim being that because people have lost large Mortgage Interest Tax deductions, they have disincentive to buy a home - really?  Did any of you ever think about Mortgage Interest Rate deductions when buying your first home?!  "you know, I would rather just rent since I can't get that deduction." - maybe?  I was thinking about my family and settling in a place that was ours...Thanksgiving, Christmases by the fire place...not Mtg Interest.

They also mention rising interest rates - that makes a lot more sense to me.  Affordability seems like a good argument too - BUT...I see young people paying a bunch of high rent, with no equity for their future.

Do these future housing projections make rental market even stronger?  Fix-and-flips becoming riskier?  I think yes (rentals=good) and no (flips=risky) based on layman's view of the world.  Any of you Pros care to help us others avoid risky future?  

(please respond quick...I just saw a sausage stand for sale outside my favorite Home Depot yesterday for $70K with van included...for a moment, I thought it might be better than going back/forth to our current rehab project site...probably just the smell of onions and peppers and sausages temporarily blinded me...still I think people will always be hungry...especially when walking out of home depot in a daze...day after day after day...I'm hoping someone's response sways me one way or another - sausage stands or real estate...I'm on the fence...)