Schiller: further 10- 25% Home Price Drop Possible

Discussion in 'Economy' started by Trajan, Jun 10, 2011.

  1. Trajan
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    Trajan conscientia mille testes

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    yea, wonderful....lets prop the market some more...:doubt:


    You are here: Home / Recommended / Schiller: 25% Home Price Drop Possible
    Schiller: 25% Home Price Drop Possible
    June 10, 2011 By Financial Bin Leave a Comment

    BLOOMBERG: Robert Shiller, the economist who co-founded the S&P/Case-Shiller index of U.S. home prices, said a further decline in property values of 10 percent to 25 percent in the next five years “wouldn’t surprise me at all.”

    “There’s no precedent for this statistically, so no way to predict,” Shiller said today at a conference hosted by Standard& Poor’s in New York.

    U.S. home prices plunged 33 percent in 20 cities through March from their 2006 peak, reaching their lowest level since 2003, according to a Case-Shiller report on May 31. The decline signaled a “double dip” as the index fell below its previous post-housing-bubble low set in April 2009. Prices more than doubled from 2000 to July 2006.

    A backlog of foreclosures poised to hit the market means prices may stay depressed, dissuading builders from starting new construction. Unemployment, which rose to 9.1 percent in May, and stricter lending conditions are signs that any recovery in housing may take years.

    more at-

    Schiller: 25% Home Price Drop Possible
     
  2. Anachronism
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    Anachronism BANNED

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    Just another reason why I am so glad I do not own property. I'm a rentor for life. No yard to deal with. No maintenance to worry about. No resale value considerations to keep me up at night.
     
  3. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    You mean they're gonna' go down to where they should have been and where they would have ended up had we not bailed out Fannie and Freddie?

    Didn't see that coming.
     
  4. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    I don't see a bottom until the economy improves and we start creating more jobs consistently enough to where people believe the corner has been turned. I don't see that happening until Obama is out of the WH. Not saying it's all his fault cuz it isn't. But his policies are putting a damper on economic growth IMHO, and we need a change.
     
  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    I can believe another 30-40% on the $300k properties.
    The homes that were sold to folks with $50k incomes....you know...McMansions...cheap cookie cutter 2500-3000 sq. ft homes built barely to code.

    I can easily see these selling for less than half what they were at the height of the bubble. These things are empty all over the country.
     
  6. martybegan
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    martybegan Gold Member

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    Except in some markets like NYC where in a few years when i want to buy a condo or a coop I will still have to shell out $200k for a decent 1 bedroom, and thats in Queens.
     
  7. Trajan
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    Trajan conscientia mille testes

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    I could never get my head around buying an apt....*shrugs*
     
  8. Trajan
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    Trajan conscientia mille testes

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    yea, basically......hey we need to keep F&F employed.....Goerlick and Raines need their dividend checks you know...
     
    Last edited: Jun 10, 2011
  9. iamwhatiseem
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    iamwhatiseem Gold Member

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    Me neither.
    Never really understood this condo thing.
     
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  10. martybegan
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    martybegan Gold Member

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    it only works in markets like this. a condo starts at 200k, a house? 400k minimum.
     

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