housing will only fall if rental prices fall. Rental prices are going strong. It's so crazy that people are paying in rent little less than what they'd pay to own a house/condo.
Rental prices are "strong" because the the amount full is at an all time low on average. If you have half your room full, you need to charge 2x the price to make up the same revenue.
Check the stats. Rental "prices" are strong, not rental quantity. Yes we have a record amount of people renting, but also a record amount of people choosing to live with their parents.
You also have to factor in we are having record full time non gov. job losses. Jobs are only up because part time and government work is at record high. 15-20k people fired PER WEEK is not a small amount, and record amount of defaults on housing/car payments.
AND you must factor in the fact (and yes, this is fact) that all of these numbers are being forged, faked, cooked, whatever, to keep the scam train going a little longer. Always factor in a margin of 2x for reality, so 40k fired not 20, in reality. You think we don't fake numbers worse than china? LOL Go check BoA's recent financial statement, then tell me why on earth people think its doing well when its nearly 1 trillion in unrealized losses.
EDIT: The only way housing will not fail, is if we go back to QE, pump the system of the 115 trillion dollars it is missing (yes, 115) and then proceed to just get hammered by 15-20% yoy inflation, but in the end, that is what will happen but it will be too late. Inflation is better than deflation, but they will try to inflate AFTER the prices have already started to plummet, and with 3-6 month lag, thats not good. For more interesting stuff, look up the EuroDollar documentary.
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