Economist Warns U.S. Home Prices Must Drop 30 to 50 Percent

What was said

"Prices need to come down 30 to 50% from where they are now to get to a level where they're affordable. The problem is there are very few buyers who can afford to pay them unless the price collapses, which ultimately is what's going to happen because home prices are ultimately set by the buyers."

Economist Peter Schiff told Redacted that U.S. housing prices, inflated by a decade of zero percent Fed rates, must fall 30 to 50 percent to reach affordability as mortgage rates hover near 7 percent. He said homeowners with low-rate mortgages are locked in, creating a frozen market, but eventually forced sales will trigger collapse. Schiff criticized Trump's stated policy goal of keeping prices high to preserve boomer wealth at the expense of young buyers.