I have referred to the case-Shiller Index several times on my blog. On February 22, 2011, CNNMoney referred to this index in an article indicating that a decrease in home prices should be expected this year. Since I share a similar prediction, I decided to continue reading. Much of the information was redundant; however a comment made by Yale economist Robert Shiller, one of the men behind the Case- Shiller Index, took me by surprise. He recently told reporters, “there is a substantial risk of home prices falling another 15%, 20% or 25%." This is without a doubt the harshest prediction I have heard to date. I believe this forecast will substantially reduce investors’ confidence in the real estate market. Rather than purchasing properties, investors will wait for a better deal in the future in anticipation of lower prices.
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