In response to:

Phony Jobs Math Not Helping Housing

eevans Wrote: Feb 15, 2013 9:28 AM
The Dodd-Frank bill let people get mortgages for 120% of the house value.......a recipe for disaster for sure! Right now in our area the gas & oil fracking operations are moving in and they are buying and renting every house and apartment available. Most of them will be here several years and when they move out, there are going to be houses all over for sale.

What will drive demand for housing in 2013? Will it be pent up demand? That was the primary driver in 2012 when interest rates fell to the lowest on record for mortgages. Will it be investors who accounted for approximately 28% of all sales last year? Or will it be good old fashioned job growth adding to demand for homes?

Pent up demand is finite. After a certain period of time that demand becomes satisfied. Any sudden increase in interest rates and that demand disappears.

Investors are price sensitive buyers. They are driven by the bottom line. It...