Economy at tipping point and housing bad: Shiller
Recent housing and employment data suggests the economy is at a tipping point, while home prices could have much further to fall, veteran economist Robert Shiller said on Thursday.
My gut feeling is we might see a continuation of the decline (in home prices), Shiller said.
He added that a 10 to 25 percent slump in real home prices wouldn't surprise me at all, though he cautioned that was not a forecast.
Speaking at the Standard & Poor's housing summit, Shiller said recent data showing U.S. home prices fell into a double dip in March could prove to be either a seasonal effect over the winter months or part of a downward trend.
Another uptick in the unemployment rate might also start to point to a double-dip recession, he said.
Shiller is the co-founder of the S&P/Case-Shiller home price index and is known for warning about bubbles in the stock market and housing market.
(Reporting by Leah Schnurr; Editing by James Dalgleish)
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