Here's the quote of the day...OK two quotes...on housing news. This is in response to data showing a 6.7% FALL in housing prices in October from a year earlier:
"This is just the beginning," said Peter Schiff, a Darien, Conn.-based investment adviser known for his bearish views of the housing market. "Pressure is there for much, much lower prices." According to Schiff, one factor that will drive prices lower is a change in buyer psychology. "The prices that existed were completely artificial, a function of speculators who are no longer in the market," he said. "Some buyers thought they were going to get rich."
Lawrence Yun, chief economist for the National Association of Realtors and among the most optimistic of industry insiders, conceded that large inventories will mean further price declines. "Price growth during the boom was clearly unsustainable. This is the payback," he said.
(Emphasis added in bold). Looks like we're in for an exciting 2008. Here's the full article with these quotes: http://money.cnn.com/2007/12/26/real_estate/Case_Shiller_down/index.htm?postversion=2007122613
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