Yale University economist Robert Shiller who long ago predicted the housing market bubble, said today that the slump in the U.S. housing market could cause prices to fall more than they did in the Great Depression
“there’s a good chance housing prices will fall further than the 30 percent drop in the historic depression of the 1930s. Home prices nationwide already have dropped 15 percent since their peak in 2006”
“I think there is a scenario that they could be down substantially more,” Shiller said during a speech at the New Haven Lawn Club.
Home prices rose about 85 percent from 1997 to 2006 adjusted for inflation, the biggest national housing boom in U.S. history, Shiller said.
On Tuesday, the National Association of Realtors said that sales of existing homes fell in March while the median home price declined to $200,700, a decline of 7.7 percent from the median price a year ago.
Housing Prices: A Scary Prediction – what can you expect when the average weekly wage (and fixed salary) in the USA is very low and the house prices have increased which results that the family on a average wage (man and woman working) with a child can not make ends meet.
Australia will go that way as well since many family’s in Australia are already suffering – what is going on in the USA will also happen in Australia (give it 2 years from now).
What goes up must come down
Damir
As you say
“What goes up must come down”
Always the case
So, So, Sorry folks, we haven’t hit bottom yet.
Ed – Michigan