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If you want to see what the market is predicting, you can look at the futures based on the S&P Case-Shiller index, traded on the CME. I am not quite sure how to read these prices, but theoretically you can derive an implied prediction from them. Also, I think they are fairly thinly traded, so that would also call into question the strength of their predictive power.
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Could you point me to where to find those prices?
Edit - Found it:
http://housingrdc.cme.com/?