11 Jun '11, 7pm

Home Prices Could Drop For "Another 20 Years" Warns One Economist:

Home Prices Could Drop For "Another 20 Years" Warns One Economist:

How likely are we to fall into yet another recession? Prospects are looking pretty bad, with a new report showing that housing prices are not only falling, but may continue to fall for as long as two more decades. Via CNBC.com : "My gut feeling is we might see a continuation of the decline" in home prices, [Robert Shiller, co-founder of the S&P/Case-Shiller home price index] said earlier Thursday at a Standard & Poor's housing summit. He added that a 10 percent to 25 percent slump in real home prices "wouldn't surprise me at all," though he cautioned that was not a forecast. Shiller pointed to the glut of unsold homes on the market and the large amount of homeowners under water on their mortgages as pressuring prices. As for when home prices might bottom, Shiller told Insider that was unclear and it was possible prices could slide for 20 years. "We've seen five years of de...

Full article: http://www.care2.com/causes/politics/blog/home-prices-cou...

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