Thursday, June 9, 2011

Shiller predicts further home price declines up to 25%

Shiller prediction is making the housing industry shutter.

While other people expect home prices to bounce along the bottom for a while without going up much, Robert Shiller is inclined to be more pessimistic.
There is room for home prices to decline another 10% to 25% in real terms over the next five years, according to Shiller.
Speaking at a Standard & Poor’s Housing Summit in New York on Thursday, the Yale University professor and co-founder of the S&P Case-Shiller Home Price Indices, noted that the current downturn is the biggest ever in U.S. history in terms of the peak to trough housing price collapse.
After adjusting for inflation, home prices were not down so much even during the Great Depression, according to Shiller.
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