Is the Housing Market Recovering or Ready to Fall?

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Dec. 3 (Bloomberg) -- S&P's David Blitzer and Miller Samuel's Jonathan Miller discuss the outlook for the U.S. housing market with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Yellen?

Each month of the last six, home prices go up less than the month before.

More importantly, we don't hear what we heard in the bubble.

We don't hear people saying they are not making any more land than this is your last choice to buy a house.

The only place you should ever put your money is in a house.

We don't hear that but we know it's a lot of investors out there buying.

Is that a good nor bad iago?

It goes up and you cannot afford a monthly payments.

They crunched the numbers and bottom line, it is getting skinnier and skinnier.

Let me throw it out there.

Interest rates going up.

Making the point that it will be harder to sell points off the lot.

What happens to houses.

We already saw what happened when the tapering message was unclear.

We saw the mortgage rates spiked.

We have seen pending home sales decline and that's what happens when interest rates derived in uc sales activity slow and the pace of price growth.

It's not as strong as it's been.

One of the things that i think people are missing from the equation is that in this argument, and i'm not on the bubble side.

If we did not see mortgage rates spiked, i was getting worried.

Credit, as tight as it was since the days of the lehman collapse -- and it's a good thing.

It keeps us as honest to a certain degree but it's also why prices are rising which sounds counterintuitive.

This is keeping many homeowners and there are not as many buyers.

Just to be clear.

It's ironic.

The seller cannot sell because they cannot trade or make a lateral move because they do not qualify.

If they do not qualify but they are not under duress, what do they do?

Nothing.

40% of those with a mortgage have lower negative equity.

Naturally, i would have said the fact that it is so much more difficult to get a mortgage these days and the fact that i think it's roughly 67% of all transactions are cash -- a huge number -- i would have intuitively said it's good to keep a lid on the bubble.

Your point is maybe it's not.

It's restrict in.

David was talking about the growth rate slowing.

If you look at the case shiller numbers, 12% plus growth, credit is historically tied and unemployment is unacceptably high.

How does that translate into 12% plus price growth?

Collects roughly, back to 2004 we have two cities out of 20 that have hit new highs, denver and dallas, they had the least the bubble of any of the 20 that we have covered.

More to jonathan's point, with restrictions on credit, you will not get as much money as you hoped.

Second of all, you have to live some place.

Unless you suddenly go to rental, it will be hard to qualify for a mortgage.

Your salary is probably where it was four or five years ago, your cash is less because you did not get much out of the house because the price is still four or five years old.

There you go.

It's going to be hard to get this mad rush and no crazy people out there.

I hope you're both right and we are not seeing a bubble.

Great to have you here.

Coming up, meet the man

This text has been automatically generated. It may not be 100% accurate.

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