The Real Deal Miami

Housing market decline will continue, Shiller says

June 08, 2009 02:05PM

Home prices in the U.S. may continue to fall for some time, economist Robert Shiller wrote in the New York Times, even though such price declines seem to go against common sense and standard economic principles. Shiller explains why price declines are likely to continue once they’ve started. Retirees are likely to move to retirement communities now and put their homes on the market, increasing the supply of available homes. But renters, seeing the uncertain employment climate, may not enter the market, so there will be fewer buyers for that larger amount of inventory. The high supply and low demand could keep prices down for at least several more years.