Academic

MR. SUNSHINE: Gary Shilling: Here?s Why House Prices Will Now Drop Another 20%. The homes in my n?

By Glenn Reynolds

MR. SUNSHINE: Gary Shilling: Here’s Why House Prices Will Now Drop Another 20%. The homes in my neighborhood that actually sell have dropped that much. But plenty are still on the market at prices above their 2005-06 level. Those need to drop 20% if they’re to sell.

Related: Goldman’s Top Economist Says There Are Only Two Scenarios, Bad And Very Bad. So have we reached the point where there’s irrational negativity, instead of irrational exuberance? Or is that a rosy scenario? And if things are so grim, why has the market gone up lately?

Full post as published by Instapundit.com on October 05, 2010 (boomark / email).