Everyone thinks the housing market in the U.S. looks like it's starting to bottom.
Famed economist Gary Shilling is not one of them—you could call him notably bearish on housing.
In fact, he expects prices to drop another 20 percent from here and doesn't think we will see a bottom in the market for another several years.
The main reasons Shilling is so pessimistic: There is a huge supply of excess inventory not being accounted for, and prices still have not fallen to anywhere near long-term historical averages.
In his monthly INSIGHT client newsletter, Shilling outlined his bearish housing thesis and used several charts to illustrate why he thinks there is no bottom in sight for the U.S. housing market, and more pain is ahead for American homeowners.
Note: Thanks to Gary Shilling for giving us permission to feature his charts.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
3 comments:
I love Salisbury.I would not want to live anywhere else,but every time I even think about buying another house the sellers won't budge on their asking price.Very little has changed locally.Potential sellers have so much money invested in their homes that any semblance to a bargain is off the table.No one can blame them for not wanting to get skinned alive when they sell,but we do not adhere to the national average in SBY.Real estate has dropped very little here.
949-If a seller must sell, eventually the price will come down.
SBY hasn't done much in the way of appreciation/depreciation, atleast over the past decade. We sold our home in a popular neighborhood on the west side of town in 2004 for 172K. Today, there is another home in the same neighborhood, 600sq ft larger, with a much larger lot(.33 compared to .52), with an in-ground pool for 3K more than we sold ours for. Hard to drop when nothing went up.
10:49-When you stated "if a seller must sell" did you mean that some people have no other choice?
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