Economist who called 2008 housing crash predicts another 15% drop in home prices
https://www.foxbusiness.com/economy/economist-who-called-2008-housing-crash-predicts-another-drop-home-pricesA U.S. economist famous for predicting the 2008 housing crash believes that home prices could plunge another 15% this year.
In a recent analyst note, Ian Shepherdson – the founder and chief economist of Pantheon Macroeconomics – suggested that home price declines will accelerate further in 2023 as a result of low affordability and growing inventory.
"We estimate that single-family home prices have fallen by 5.4% from their recent peak in May 2022, but they still need to fall by a further 15% or so before they return to their long-run average, compared to disposable incomes," he wrote in a recent note to clients.
Although consumer demand likely is bouncing back from a low point in the fall as mortgage rates fall from a record-high, Shepherdson – who predicted the mid-2000s housing bubble and subsequent recession – believes that prices have a ways to go before they hit bottom.
Ian Shepherdson predicted the 2008 housing crash. He predicts housing price will drop this year.
