The Real Deal Miami

Roubini says home prices will fall further

October 09, 2009 10:35AM

U.S. home prices may fall another 10 percent, according to economist Nouriel Roubini, co-founder and chairman of RGE monitor. Roubini, who is widely considered one of the most accurate predictors of the economic crisis, said that the residential market is still unstable and that a shaky commercial industry could compound problems. “The stress is moving from residential mortgages that are still in deep trouble, to commercial real estate, where they are just starting to recognize that they’re going to have massive, massive losses,” Roubini said. While he said that housing inventory may have bottomed out, Roubini argued that prices could drop more, despite the recent uptick in average home asking prices.