Economist Robert Shiller: We may never see rebound in home prices in suburbs

If you’re interested in the cultural and financial ramifications of the housing bust, this Q&A with Robert Shiller (of Case-Shiller) is absolutely worth a watch.

He notes that we could be in a long Japan-like slump and that we could be in a long period of stagnant or declining home prices, especially for older homes that don’t meet modern standards and expectations.

“Dispersed suburban housing may not do well in decades to come,” he notes at one point. He takes pains to qualify it, but he also seems to think it likely that home prices in America’s suburbs might never rebound.

2 comments for “Economist Robert Shiller: We may never see rebound in home prices in suburbs

  1. March 28, 2012 at 11:21 am

    Bill: I’m curious – is it time to buy something in your neighborhood, or will prices fall more? I’d love to relocate, but don’t want to overpay, even if I’m paying cash

    • bill dawers
      March 28, 2012 at 5:37 pm

      I think we’re pretty close to the bottom or even at it in many neighborhoods in the Savannah area. But there is still a very high level of inventory in more expensive areas, especially. That would suggest continued price declines, but there are some other factors — like job growth and a strengthening economy generally and the fact that we’re headed into the busy buying season — that will work to buoy prices. It’s hard to know what will happen at this point.

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