Home Prices: More Room to Fall
CEO of StreetTalk Advisors Lance Roberts sees home prices continuing to fall another 10-15 percent, and overall economic growth will be about one percent, lass than half of other analysts who are predicting 2-2.5 percent growth. In an interview with HousingWire he says, “ There is a current belief that the U.S. can grow even as China slows and the Eurozone goes into recession. But 20% of our exports go to the Eurozone. If they go into recession, it is going to be difficult for us to avoid a recession without some type of stimulus program.” He says the recession was created when government subsidized people reaching for home ownership they could not afford, but cheap credit made it look possible. In order for people to come up with a 20 percent down payment to buy a house, prices will have to fall a lot farther.
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