by Calculated Risk on 3/17/2006 06:32:00 PM

Drs. Leamer and Thornberg from UCLA's Anderson Forecast were quoted today on housing. From Contra Costa Times: Bay Area housing market cools

"We're at the peak and what happens next is a matter of great uncertainty," said Edward Leamer, director of UCLA Anderson Forecast.

And from the San Francisco Chronicle: Bay Area housing market cools

... Christopher Thornberg, economist at the UCLA Anderson Forecast, predicts prices to hit a plateau later in the year, which could persist for an extended period. In addition, the downswing will have a direct impact on the construction, mortgage and real estate industries.

"It's going to take the energy out of the economy, reducing the wealth effect and diminishing retail sales in [California], but it's not going to cause a recession," Thornberg said.

It makes sense that a housing slowdown will impact the overall economy, but by how much remains unclear ... "a matter of great uncertainty".