Home prices fell 6.7% in October, a record decline according to CNNMoney.
It was the largest drop in more than 16 years and marked the 10th consecutive month of price depreciation and 23 months of decelerating returns.
“No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim,” said Robert J. Shiller, chief economist at MacroMarkets, in a statement.
The shocking, revelation that housing prices were being artificially inflated by speculators who are now now off speculating on something else is finally hitting people:
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.”
Today, however, that demand has all but disappeared. “More people want – or have – to sell,” said Schiff, “because prices aren’t going up, so buyers have to look at the actual cost of owning a home.”