Housing Prices To Collapse Now That The Feds Increased Rates?

[Wendell De Guzman]

Most likely the price will NOT collapse (just want to get your attention) but I wonder if housing prices will go down now that Feds started increasing interest rates. Here's the news from Bloomberg:

http://www.bloomberg.com/news/articles/2015-12-16/fed-ends-zero-rate-era-signals-4-quarter-point-2016-increases

The stock market rallied in view of the stronger economy (or they perceive the economy getting stronger because the Feds increased interest rate?).

Oil went down a bit as commodities usually go down as money becomes more expensive.

But what about real estate prices?

Do you think real estate prices will go down as it's a commodity like oil? Or will it go up because the economy is becoming stronger (hence more buyers)?

I know no one can predict the future...But I know BP has very smart people like @J Scott, @Brian Burke, @Bill Gulley @Ben Leybovich , etc. So, there you go.

Who wants to start?

[Brian Burke]

Speaking as to California, prices have risen quite a bit since the trough. But, I don't see this rate adjustment as having a significant impact. I think our prices were about to plateau for a while anyway and the higher rate will help to encourage that. A decline?  I doubt it, and if it does happen I think it's likely to be minor and short-lived. Now I'll put my crystal ball back on the shelf and wait to see if it was right.