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".