ken rosen, chairman of the fisher center for uc berkeley and aneika kahn, at wells fargo security.u heard diana's report. i understand buyers may not be excited but doesn't appear sellers are either. i don't think we hit enough on the low inventory story on areas where you live like seattle an new york, not a lot of good homes to sell, why would we expect the housing numbers to go up? >> the key thing that's happening here is that price growth that happened in a lot of these markets was artificially boosted by people buying foreclosed properties in large numbers. i think bob schiller is right, that's over. so the price growth that we've seen is not going to continue. our best guess is this will be a 12 or 13% year and then next year will be 2 to 3%. but housing sales, while they soften some because of higher house prices, affordability comes down, take a look at the graph we have, affordability has come down substantially, two reasons, house prices going up 12, 13% and some markets like san francisco 25%, the second reason interest rates are up 100 b basis points over a year ago. i

let's explain our thinking and bring in aneika from wells fargo. good enough along with the stronger gdp number we got this week, to make the fed decide to pull back on quantitative easing, aka taper in december. >> that's the question of the hour. and we think that it raises the possibility but we still think this is a very data dependent federal reserve and that we still look for the announcement to come in march. we really have to look to that november nonfarm payroll number and see if these numbers stick. however there is a clear disconnect and some of the indicators we're watching. so we don't know yet. if we have a real argument for the fed to taper in december. >> let's turn this on its head a little bit here, because aneika said we're still data dependent but is it possible the fed is not so much data dependent at the moment as it might be market dependent? and if we continue to see the rates move to the upside might that hold the hans of the fed a little longer as well? i definitely think so. the fed has been taking about being data depend