December 21, 2024

housing marketThe Case/Shiller index, which covers 20 local markets and a national average, showed third-quarter home prices have dropped 1.7 percent from the second quarter. Yale economist Robert Shiller said, "You're talking about [home-price] declines of 50 percent, in real terms. That's not out of the question."

Shiller said the latest declines were notable for two reasons. "First, the third quarter decline, at 1.7%, was the largest quarterly decline in the index's 21-year history. And, second, the year-over-year decline posted its second consecutive record low at minus 4.5%." "We are in the aftermath of the biggest housing boom in history," he said, "and, even though a lot of peoples' models don't reflect [the problems], I think there's a significant chance of recession, over 50 percent." [tags]home values, San Diego real estate, real estate market, real estate bubble, housing bubble, housing bust[/tags] San Diego California real estate

3 thoughts on “50% Home Price Declines Possible?

  1. Houses will only fall 30% if everyone rushes for the exits. 5 years ago many markets were underpriced and it’s highly unlikely they’ll go back to that level. There’s still a lot of demand for housing and THERE ALWAYS WILL BE! Anyone predicting a 40% decline is making a prediction because he earns money by making predictions!

    John
    San Diego Bail Bonds

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