Robert Shiller says that home prices may keep falling for years
Bailout News, California Housing Crash, Florida Housing Crash, The Economy, Real Estate June 8th, 2009
Robert Shiller, the guy who predicted the housing bubble and bust and one of the few economists who warned us about it while realtors and the government were saying that the subprime mess was contained, is now telling that despite what you might hear from the permabulls (ie realtors, mortgage brokers, the government, Jim Cramer, and Larry Kudlow), home prices might very well continue to fall for several years. In an article in the New York Times, Shiller says:
HOME prices in the United States have been falling for nearly three years, and the decline may well continue for some time.
But something is definitely different about real estate. Long declines do happen with some regularity. And despite the uptick last week in pending home sales and recent improvement in consumer confidence, we still appear to be in a continuing price decline.
Read the whole article here.
Now, you can believe the permabulls that never warned you about the housing bubble and kept telling you to buy, or you can believe Robert Shiller who is a well respected economist and doesn’t make money by selling real estate.
