Finally, they speak!

From CBS Marketwatch, we have Steve Kerch reporting on: Housing still on down slope.

"I don't think we've seen the bottom," said David Berson, chief economist for Fannie Mae. "We're going to see a much bigger drop in investor demand this year. But by the second half of the year the market will stabilize, if investors pull out quickly."

"Real home-price gains, adjusted for inflation, will be negative this year, next year and possibly the year after that."

This is such a bunch of bollocky-talk from the chief economist of Fannie Mae.

What is so magical about the second half of the year that will cause prices to stabilize?

I'll give you a better prediction:

Real home prices will fall in nominal terms this year, next year, and possibly the year after that.

In fact, I'll give you a stronger prediction:

Since home prices have traditionally been 3-4x income, and now in places like California, they are skirting 11-12x income, I'll go out on a limb and say that real home prices will never in my lifetime reach the same amount in inflation-adjusted terms.

Put that in your pipe, and smoke it!