Calculated Risk: Housing outlook is ‘uncertain’

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For those of you who aren’t regular followers of the Calculated Risk economics blog, here’s a link to CR’s Thursday post in which he characterizes the housing market’s future as ‘uncertain.’

As many call a housing market bottom, CR contends foreclosure delays and possibly shaky loan modifications are constricting the supply of homes that should otherwise be on the market. On top of that, CR sees demand being inflated by the home-buyer tax credit and FHA loans. The two also work together, with some buyers using their $8,000 tax credit as a down payment when purchasing with an FHA loan -- thus having no skin in the transaction.

He predicts another downturn in house prices next year, but says prices at the low-end have in many places bottomed. Read the full post on the uncertain housing market here.

-- Peter Y. Hong