The NY Times argues that the effect will be small. An old friend of mine, Jed Kolko, is quoted in the article. Here is his quote;
Jed Kolko, the chief economist at Trulia, a real-estate analytics firm, anticipated a muted effect on sales.
“The big obstacles for people who want to buy are saving enough for a down payment and qualifying for mortgage, because credit is still tight,” Mr. Kolko said, saying that the Fed program would not directly address those problems.
Still, Mr. Kolko and other analysts said that any effort by the Fed to make borrowing cheaper and to aid the economy would help the housing recovery.