Speaking at a recent Standard & Poor's conference in New York, Shiller stated that property values could be moving down by another 25 percent before bottoming out.
"A 10 to 25 percent further decline in real home prices over the next five years would not surprise me at all," Shiller stated. "There's no precedent for this statistically, so no way to predict."
After home values peaked in 2006, they have fallen by 33 percent through March across 20 cities. The decline has now put values at their lowest level since 2003. Furthermore, prices experienced a double dip when the decline continued and surpassed the index's previous low mark, experienced in April 2009. By comparison, home prices had doubled between 2000 and July 2006.
Other experts at the conference also expressed their pessimism regarding the real estate industry. Bank of America CEO Brian Moynihian recently stated that any further declines will be "incremental."
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