Economist Robert Shiller foresees double-digit home price declines

After years of strong housing market activity, which saw significant home price appreciation and record-high home prices, noted economist Robert Shiller foresees home prices dropping by as much as 10 percent in the next couple of years. Shiller, a Yale economist who presaged the housing bust in the late 2000s, brings some significant credibility with his perspective. A housing bubble requires three elements: rampant speculation, overvaluation and declining prices. The industry has definitely seen the first two – time will tell if prices indeed decline as Shiller foresees, and we officially have another popped housing bubble.