I'll forward this thread through the 4th of July. Here are some predictions from the end of 2007. "rob: i predict that 2008 is when the housing bubble outside the US starts to deflate. This includes Canada, Mexico, UK, Spain, and others. The rest of the world is still in 'it's different here' denial, but in the end, economic principals suggest that while everywhere is 'different,' nowhere is really that different when it comes to over-valued and over-build housing markets."

"This will cause the world-wide credit crunch to be more severe, as borrowers in other parts of the world start defaulting like their US cousins."

"crispy&cole: I predict prices down nationally another 5-10%, inventory increases and a minor rescession in 2008, 2009 will be the worse..."

"FB wants a do over: Realtors will continue spouting the bottom was just reached - all throughout the year."

"oxide: 1. I predict that the real 'affordable housing" is going to be re-partmented condos, or condos at fire sale prices. Condos were late to the party so they can hang on a little longer, but they too will crash. Right around next Halloween."

"2. I predict I will NOT buy a house in 2008. I thought I would, but I'm just not as interested yet. 3. I predict that at least one bailout bill will make it to the floor of either House of Congress to pander to voters, but will die there."

"4. At least one mid-size bank, one major builder, and one major loan originator will give up on taking on new debt, and do the business version of jingle mail."

"dennis: I predict the Stock Market below 12,000 by June. It will get ugly as panic sets in when the FEd is unable to control the pundits on wall street."

"LILLL: I predict that the MSM will still deny that we are in a recession. Home prices in SoCal willfall off a cliff and nobody will ever again have to promise to feed the squirrels. Credit will get crunchier."

"I will buy a repo SFH cheaper than a condo with 25% down Shendiand live happily ever after. I will start lowballing early summer. I'll buy for under 400k in the SFV. I shall share my journey with HBB. Happy New Year All!"

"Shendi: Some MSMs will lose market share due to people shunning the misleading, incomplete and shill type articles on the state of RE. Eventually some will die a slow death due to lack of RE ads Increase in divorce rate. Increase in obesity and health related issues for the paycheck to paycheck families."

"cayo_ron: Increase in bubble-related violence, i.e. multiple shootings/suicides."

"em3: Rates of sales decline will taper off in the next few months into a more or less static number of sales nationwide; that constant won't change much for a long time out. Prices, however, are going to continue to fall for many years to come (more than 10). Vulture fund money will try to catch knives by buying improved land this year."

"A few smaller banks go belly up in ‘08, but none of the major banks-some of which rather will see more receipt of multi-billion dollar infusions of cash from a trusting middle-east and east."

"The big story of 2008, however, is non-construction, non-manufacturing layoffs-in finance, banking, automotive, government, some academia."

"barnaby33: I predict we're already in recession, especially counting for inflation. We will continue to see inflation and deflation at the same time depending on what you are looking at. The worst of the housing declines will occur late in 08 as the banks are loaded to the gills and see the next wave building, at the same time that credit is getting harder to come by."

"BayAreaRog: Inventory swells in late January. Normal sellers who'd been waiting out the holiday season + a few FBs. Buyers drink the RE agent Kool-Aid and start trying to buy again, but can't get loans. Expect lots of aborted escrows in March. Good buyers with money can still buy, so sales volume goes up temporarily and median price plateaus or inches up."

"Spring brings a huge wave of FB listings due to ARM resets. Early ‘08 listings still haven't sold. By May, inventory spikes to 'unprecedented levels.' Leslie Appleton-Young calls this 'the best buyer's market in history.'"

"Through September, sellers and REO-rich banks still act as if it's early 2006 and don't budge much on prices. True lowball offers (20% or more off asking price) still get rejected, by and large. Would-be buyers finally realize foreclosures and REOs aren't better deals than regular listings and lose interest. Inventory keeps growing."

"Groundhogday: We'll see builders drastically undercutting the existing home market through 2008 and competing with bank foreclosures."

"It will be almost impossible for anyone to get a home loan by the end of 2008. Even Fannie and Freddie will struggle to securitize mortgages. FHA might be the only game in town, but not a game that will support even slightly bubbly prices due to tight lending guidelines."

"SDGreg: One of the stories for 2008 and especially 2009 will be one of increasing fiscal problems for state and local governments. It will be evident by the end of 2008 that the current fiscal problems in California, which will eventually seem minor in comparison, will be increasingly severe in the two years that follow."

"JimmyB: The big story of 2008 will be the mass extinction of homebuilders. A huge majority will go BK as sales continue to fall, margins are zero or negative, and mass over-capacity becomes painfully obvious."

"stanleyjohnson: I predict no matter how bad things are in RE Larry Kuntlow, Bob Pisani, Tom Atkins, NAR, CAR and Babara Corcoran will all say it is a buyers market, so buy now."

"cactus: Recession in 2008 and the FED will continue to lower interest rates down to 3.5%. Stock market will go down 10-20%. Home prices will fall 10%-20%. US dollar will trend lower against other currencies especially fast growing Asian countries. Commodities will go up against the US Dollar. RE agents and Loan brokers will be mocked and parodied often in 2008."

"Ouro Verde: I think that so much happened last year that the worst is already here. From here on out will be a few years of 'working out the kinks.' The only thing that hasn't happened is drastic price reductions and we may never see that in SoCal."

"combotechie: It will be revealed that EVERYONE saw the coming decline, that it was so obvious only a blind fool could have missed it. The absolute, final, solid, rock-bottom prices in RE will be reached many times in 2008 and into 2009. Cash will be scarce, debt expensive. The American people will begin saving money."

"jbunniii: Call me crazy, but I think that in 2008, the Bay Area will finally crack. I predict at least 10% YOY median price declines in San Francisco, Marin, San Mateo, and Santa Clara counties."

"janna: I just have one little prediction for 2008, though I think it could be 2009 or 2010 even before it happens. I think that local sheriffs will stop enforcing evictions for foreclosed borrowers. I think the volume will so grow so large, that they will be overburdened and seek to charge fees to the lender."

"In addition, I think the pushback will be so fierce, that in some municipalities and counties, the departments will decide that the task poses too much risk to their officers. There will either be indefinite squatting, or private enforcers of the blackwater type enforcing evictions, as they do not have to be voted into office as many sheriffs have to be."

"vozworth: Multiple municipality bankruptcies.... runs on non-depository institutions continues..."

"Curt: I predict 2008 will be exactly like 2007.......only much worse."

"johnbanner: I predict Gary Watts will get hired by Burger King in May. After 2 weeks on the job, the manager will fire him for lying to customers about the weight of the all beef patties."