….Shiff is not persuaded that any of the government interventions undertaken to revive the housing market have had any positive effect. He is persuaded, instead, that when the housing market clears, and reverts to the trend line, it may very well overshoot that trend, with possible declines in housing prices approaching 30 percent from current levels. He explains:
In trying to maintain artificial prices, government policies are keeping new buyers from entering the market, exposing taxpayers to untold trillions in liabilities and delaying a real recovery. We should recognize this reality and not pin our hopes on a return to price normalcy that never was that normal to begin with.