Mary: This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program asks if home prices in cities could fall. Mike, ever since the Great Recession a decade ago, owners have worried about the prices of their homes. They worry that home prices could drop again like they did during the Great Recession. Now a renowned economist is saying home prices could drop again as a result of the coronavirus. Give us more details.
Mike: Summary Answer
- Prediction is from Robert Shiller, a Yale Nobel-Prize winning economist who was one of the few to predict the Great Recession
- Says home prices in big cities could drop, especially if virus lingers
- Reason is because virus spreads most easily in density
- Shiller says families, especially, are already moving to lower density suburbs to protect themselves – could mean lower prices in homes they sell
- Especially facilitated if can remote work
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.