SHILLER: House Prices Probably Won’t Hit Bottom For Years

THE TRUTH IS YOU DON'T WANT TO OWN A HOUSE THAT IS OVER INFLATED AND OWE THE BANK A TON OF MONEY!!!!

This is such crap!!!! Housing prices have fallen for the last 4 yrs ... Why are property taxes so high,,, Rip offs

Try to get a loan from a bank, despite low interest rates! The banks now even CHARGE us for depositing in their banks. What happened to banks PAYING interest ? I remember the Great Depression as a child, when you had to remove your cap when you entered a bank and speak only in whispers, just like being in a library or a church!! I guess what goes around does come around!!!

we need more JOBS JOBS JOBS... And the housing market is very unstable till the foreclosures are all put to rest.

The economy hasn't deteriorated much since July. You obviously haven't noticed that it's been in gradual decline since 2007. The recession never ended -- it just paused long enough to pick up all of the free money from the stimulus.

Recently sold my house at 70% loss. Many would have walked away or done strategic default. The lesson I learnt is in buying and selling, the usual agents - realtors, banks, title insurance, even tenants, will always get their cut. Never foresaw house prices going down that much as building it costs much more than the sell price. So buyer beware. That is capitalism for us.

Look if you want a house, find one that has a selling price equal to 1996-97 selling prices, that is fair today...and if you can't find one in that range in your area, then move on to a seller that wants to deal and sell a house. It's your market and it's great rates, and rentals are only going up. My rent is more than my mortgage will be with taxes included...sure I'm not buying my dream house, BUT it's nice and the American Dream is not being in debt to creditors it's living and growing while providing basic needs for your family. A family of four does NOT need a 4 bedroom home of 2000 sqft! UN-consumerize yourself and live happily, because of location and price, NOT SIZE!

When the house prices are low enough then people can actually afford to buy a home. The goal of the government is to support the banks and make it obligatory to use their "services" and pay them interest for 30 years. A better idea is to buy or sell your home on a contract directly and bypass the banks altogether. There really is a bright side to the housing crash.

inflation will bail out people especially those who have low rate fixed mortgages

Offer fell through. Now, another listing, $224,900, then down to $208,900, that was firm at $199,900, Bank, earlier rejected our offer of $200K, is now $189,900. We would re-offer $184,900? Can you figure what is going on with the Banks?

The housing market bubble was created and inflated to distract you from stagnant wages and the dissolve of employee benefits and retirements...so F em! You want a happy life, then live WAY below your means, save your money and spend it only on things that will enhance your life, WHICH INCLUDE ONLY AMERICAN MADE, those dollars will come back into your community and we will rebuild America. Shop local, eat at home or at mom and pop, it's better for you in any and all ways.

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Thomas Jefferson

Repeat after me, "Artificially Inflated Market!" The banks post pricing of homes. They are intentionally sitting on a LOT of inventory. No one is auditing them. So what do we get? Housing prices at unreal levels and kept unaffordable to "the Average American." So much for the American Dream. Banking is so god #$%$ corrupt house prices won't fall until the real economic disaster settles in! The best is yet to come.

in a healthy economy home values are supposed to appreciate as real incomes grow. this is rather hard to accomplish in reality when so many are suffering from stagnant wages and declining wages in some markets.

My guess is, is
1. Until we use up the pipeline of underwater and bankrupt home inventory the prices will keep falling until the number of underwater home drops
2. Until the economy starts going up, there will still be instability. This is contingent on political stability - by far the dysfunctional nature of politics is the main driver behind the failing US economy, coupled with the impact of a period of change in core technologies.
3. Over the short to mid-term (5 years) house prices are going to keep falling. Even if the economy improves, until housing inventory goes down, I don't expect improvement.
4. After that I expect a long-term boom to fill pent-up demand and the expected boom in the US economy.

Well, I am putting my money where my mouth is and am appropriately investing.

Typical 2 articles on Yahoo saying the opposite thing. http://finance.yahoo.com/news/Spring-buying-boosts-US-home-apf-2702336463.html?x=0&sec=topStories&pos=7&asset=&ccode=

Remeber Shiller is a real estate hedge fund manager. It is in his interest to get swings of home prices to go as far in both directions as possible. Do your DD.

with recession, joblessness and continued jobloss, there will be more downward pressure on home prices as foreclousures will continue

We'd love to buy a house. But I'm not stupid. I know our local market has significant room to drop. Why would anyone buy today, when they know it will fall tomorrow?

Holding foreclosures off the market does slow the decline in house prices. Less supply for the current demand does slow the decline. But mostly the government doesn't want to start a panic. They know if home prices start dropping quickly then people will panic in large numbers and the government will have to come up with 5-10 trillion to prevent the country from going back to the dark ages. Our government is wasting all the money they are comfortable with. If they waste much more it will cost them their jobs and they can't have that.