This week some have predicted real estate doom and gloom while others have said now is a perfect buying opportunity (I remember lots of people saying this as the market slid in 2000.) Economist Nouriel Roubini of Roubini Global Economics is leaning on the doom and gloom side of things:

“‘This is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices,” Roubini said. The decline in investment in the housing sector will exceed the drop in investment when the Nasdaq collapsed in 2000 and 2001, he said. And the impact of the bursting of the bubble will affect every household in America, not just the few people who owned significant shares in technology companies during the dot-com boom, he said. Prices are falling even in the Midwest, which never experienced a bubble, ‘a scary signal’ of how much pain the drop in household wealth could cause.”

Via MarketWatch