Of course this could also motivate banks to start releasing their shadow inventory at a greater rate, meeting demand and causing prices to stabilize.In sum, it’s anyone’s guess, but it’s clear (to me at least) that basic supply and demand economics are too simplistic to predict the relationship between interest rates and home prices.The sources for this chart are:30 Year Interest Rates from Freddie Mac (averaged by quarter): http://www.freddiemac.com/pmms/pmms30.htmHome prices from John Shiller’s “Irrational Exuberance†website: http://www.irrationalexuberance.com/

Hey all - I was curious about your thoughts and predictions for the real estate / housing market for 2012.

I'm not sure how well they will fare in the 3 feet of snow you've been predicting. ;)

While I believe observations about larger markets are somewhat useful to make predictions about the economy in general I believe to make money in real estate you need to pay attention to what is happening in your local market.

My prediction is that bank lending in the U.S. will tighten up even more, as the European debt crisis worsens.

Difficult to predict.

If I were the Census Bureau, I would predict that Steve will pass Will and Rich in a couple of months.

I wonder if the author did any regression analysis to see how well his model predicted the prior falls.One thing that is different this time around (nothing to do with the model) is the number of people who could borrow 100%. 100% financing was much easier to raise for jumbo sized loans than in past cycles.As to falling 20% more.

The prediction, now in 2020, by economists, those who study economic data, is that the U.S.

A recent Z-Report from Zeldman predicts 2019 to pick up steam again.