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Shilling: Housing Market Could Fall Another 20 Percent

Posted Jan 06, 2009 08:30am EST by Aaron Task in Investing, Recession, Housing
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The already crumbling housing market could plummet an additional 20%, says Gary Shilling, president of A. Gary Shilling & Co., and author of the popular INSIGHT newsletter.

Although housing is already down 25% peak-to-trough based on the latest S&P/Case-Shiller numbers, there's no near-term bottom in sight, says Shilling, one economist who presciently saw the crash coming.

Excess inventory - nearly a year's worth supply - is the "mortal enemy" of any recovery in housing, says Shilling, who does not believe the Fed's efforts to lower mortgage rates will resolve the crisis.  

Barring a prolonged period of weaker prices, Shilling believes only radical action - like bulldozing homes or letting immigrants into America to buy homes - can solve the crisis, as detailed here last month.  

Plus, Shilling's predictions for 2009. 

Click "more" to embed the new video. 

 
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