I always like to keep an eye out to see who predicts what and who gets it right. So far, Calculated Risk has been pretty accurate.

This is a recap of his prediction.

It makes for an interesting reading because he gives a lot of short market history. With a quick review of how supply and demand effects the market, he goes on to explain how the inventory levels are still climbing. The quick and easy culprits are not enough owner owned homes on the markets. Too many investors and some stuck with loans that are rising faster then income.

One thing our governments could do, both locally and country wide would be to lower or review housing taxes. People paying $400 a year for home because they lived there 10 or 20 years, makes a hard sell when buyers realize they could pay $1,500 to 15,000. If push comes to shove, I’m sure a rewrite in taxes will have to happen.