Home Prices Are Still Too High

In this Op-Ed piece, Peter Schiff makes the argument that housing prices could fall another 20-28% from current levels.  “From my perspective, homes are still overvalued not just because of these long-term price trends, but from a sober analysis of the current economy. The country is overly indebted, savings-depleted and underemployed. Without government guarantees no private lenders would be active in the mortgage market, and without ridiculously low interest rates from the Federal Reserve any available credit would cost home buyers much more. These are not conditions that inspire confidence for a recovery in prices.”

Wall Street Journal 12/30/10