DS News
The U.S. housing market may be headed for a crash, according to 2013 Nobel Laureate for Economic Sciences Dr. Robert J. Shiller. Shiller, citing the S&P CoreLogic Case-Shiller index, notes that property values in 20 cities decelerated for a 15th month in June, increasing 2.1% from a year earlier. Shiller noted that adjusting for inflation, prices had already flattened.
“It would suggest declining home prices in the near future,” Shiller told Bloomberg Television on Thursday. “I wouldn’t be at all surprised if house prices started falling.”
Also falling were price gains in 10-city composite, which dropped from 2.2% to 1.8% in June. The 20-city composite posted a 2.1% annual gain, down from 2.4% the prior month.
“The reality here in Arizona continues to prove different than in other parts of the country. Home prices increases are accelerating rather than decelerating, along with demand. The habitual shortage of housing and falling mortgage rates are accommodating, allowing sellers to charge more. With both new and resale demand increasing at near-double-digit paces relative to the same period a year ago, price gains are not expected to slow; they are far more likely to rise.
The reality here in Arizona continues to prove different than in other parts of the country. Home prices increases are accelerating rather than decelerating, along with demand. The habitual shortage of housing and falling mortgage rates are accommodating, allowing sellers to charge more. With both new and resale demand increasing at near-double-digit paces relative to the same period a year ago, price gains are not expected to slow; they are far more likely to rise.”
~Jim Belfiore , founder and president Belfiore Real Estate Consulting
