Finding a “new bottom” in U.S. housing prices is “within the realm of possibility,” Robert Shiller, a Yale economics professor and co-founder of the Case-Shiller price index, told CNBC Friday.
“On an unadjusted seasonal basis, prices have been declining for five months,” said Shiller, describing the housing market as “kind of iffy” and warning of a possible double-dip recession. A double dip recession is when GDP returns to negative after a couple of quarters of growth.
Earlier this week, the latest Case-Shiller index showed a 0.9 percent drop in February on an unadjusted seasonal basis, which was worse than expected, and fell 0.1 percent on a seasonally adjusted basis after eight straight increases. A federal home buyers' tax credit expires Friday.
Shiller acknowledged the resurgence in the stock market since President Obama took office. However, he cautioned, “a lot of people think it’s (the recession) is over, but I’m not sure it is over.”
The high unemployment figures and a general anger toward Wall Street also occurred during the Great Depression, Shiller said.