Good chance that this housing recession will go on for years

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Robert Shiller is a Professor of Economics at Yale University and one of the most respected experts in Real Estate. He predicted the burst of the internet bubble and have been predicting the burst of the housing bubble for the past two years.

This is what Professor Schiller has said in a recent interview on housing and real estate.

"American real estate values have already lost around $1 trillion [£503 billion]. That could easily increase threefold over the next few years. This is a much bigger issue than sub-prime. We are talking trillions of dollars’ worth of losses.

"Over the next five years, the futures contracts are pointing to losses of around 35 per cent in some areas, such as Florida, California and Las Vegas. There is a good chance that this housing recession will go on for years."

Source: By NationalBubble.com

Armen Hareyan's picture

Posted January 8th, 2008 by Armen Hareyan

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Your comments...

Expect the housing values to fall farther then the experts expec

mlimberg's picture
Submitted by mlimberg (not verified) on Wed, 2008-01-09 02:47.

50 % plus is likely. Look for a secondary fall when speculators take a second hit as they get in too early.

Crash in N. California now

Tracy's picture
Submitted by Tracy (not verified) on Thu, 2008-01-10 18:20.

What do you call this:

The East Bay Board of Realtors in N. California reports the areas of Hayward, Castro Valley, and San Leandro having an average sales price of up to 120K less than the average sales prices in June 2007. REOs and short sales are common and avg. days on market are almost double from 6 months ago....

There is no way this area can sustain these price drops for much longer.
At this rate, houses will drop to 2/3 their original value by this summer compared to prices in Jan. 2006. Can you say CRASH!!!!