Industry NewsMarkets & Economy

Home-price slide approaches $4.5 trillion

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A University of California, Los Angeles, economic forecast report notes that U.S. home-price declines since 2006 amount to an estimated $4.5 trillion loss in wealth. "Perhaps more astonishingly, stock prices are on track to either having their biggest decline in history or, if not that, their worst performance since either 1931 or 1937," concludes the latest UCLA Anderson Forecast, released today. The wealth loss estimate is based on a national Case-Shiller price index, which estimates that home prices have dropped about 22 percent since their 2006 peak. And that is coupled with a stock-price decline valued at about $7.4 trillion since December 2007. It is "no accident that the industries linked to the two most durable and most tied to wealth and credit of consumer assets -- houses and cars -- are suffering," concludes David Shulman, senior economist for the Anderson Forecast, in a section of the forecast report titled, "The Balance Sheet Reces...