ACCOUNTANT

Shiller: Expect More Home Price Declines

Schiller also bases some of his assumptions on the fact that, when compared to inflation, housing is still 50% above where it was in 1900. But he completely ignores productivity increases made over the past 109 years - his was totally based on inflation.

For what it is worth, housing prices are up the last two months in California, one of the hardest hit areas. And in Arizona, there was a young couple highlighted on ABC that had just lost out on their attempt to buy a house for the eighth time - and they were pre-approved for a $150,000 loan. Housing market tghere can't be quite as bad as some would have us believe.

From personal experience, it took my daughter three attempts before she was recently successful in buying a house - and even on the last one, she got it because she was willing to be more flexible on the closing date - there was another offer significantly higher than hers.