The MSM loves to call the end of the housing bust. These are the problems with the housing market:
- Huge shadow inventory of homes in the foreclosure process.
- A lot of people are underwater on their mortgages, and these people would love to sell upon a rise in the market. This means that an increase in housing prices will be quick to breed new inventory thereby keeping a lid on prices.
- Low employment levels are depressing new household formation levels.
- The real rate for a mortgage is pretty high, because the rate of inflation is so low.
- The increased levels the author is touting are from such low baselines that it is disingenuous to use them as proof of a rising market.
- If all economists agree on something, watch out. Groupthink is in play here.
Analyzing the charts and other information in this article, I believe a more accurate conclusion is that housing has hit the bottom. It probably will not get worse for some time.