Posted by on

Shiller: American Economy At Tipping Point

Recent housing and employment data suggests the economy is at a tipping point, while home prices could have much further to fall, veteran economist Robert Shiller said on Thursday.

“My gut feeling is we might see a continuation of the decline (in home prices),” Shiller said.

He added that a 10 percent to 25 percent slump in real home prices “wouldn’t surprise me at all,” though he cautioned that was not a forecast.

Speaking at the Standard & Poor’s housing summit, Shiller said recent data showing national home prices fell into a double dip in March could prove to be either a seasonal effect over the winter months or part of a downward trend.

Another uptick in the unemployment rate might also start to point to a double-dip recession, he said.

Shiller is the co-founder of the S&P/Case-Shiller home price index and is known for warning about bubbles in the stock market and housing market.

Source: Banker and Tradesman

Leave a Reply

Your email address will not be published. Required fields are marked *