Yes, once again it’s the academics squaring off against the Realtors®. Not too surprisingly, they offer two wildly different views. Play along and see if you can match the forecast to the group:
1. [M]edian home prices across the state will rise 15 percent year-over-year in 2005, down from 21 percent last year. In 2006, prices will probably increase less than 15 percent, but well above zero.
2. Prices are not associated with reality…[they] are gambling on massive amounts of appreciation, and it’s not worth the price compared to the rental value. It’s a house of cards.
That’s right, the first is credited to Leslie Appleton-Young, economist at the California Association of Realtors. And number two? A pesky academic economist at UCLA named Christopher Thornberg.
· Housing market tumble forecast [Chronicle]