NEW YORK (Reuters) - It is very difficult to predict when U.S. housing prices will hit bottom because the economy is deteriorating so quickly, economist Robert Shiller, co-creator of the S&P/Case Shiller index, told Reuters on Friday.
The U.S. housing market is experiencing its worst downturn in modern history. On a national basis, homes have lost about a quarter of their value, and economists foresee at least an additional 10 percent decline.
What the future holds depends on what sort of traction government programs gain to help stem foreclosures, Shiller said.
“It’s hard to predict this market because we’ve just been through the biggest bubble in history and it’s at the time of the worst financial crisis since the Great Depression,” he said in an interview with Reuters television.
Shiller noted that prices have been falling quite rapidly every month, adding, “That has a good chance of continuing.”
Reporting by Pedro Nicolaci da Costa; Editing by Leslie Adler