Photo: Reuters Insider
Westwood Capital founder Daniel Alpert believes housing prices could decline another 7 per cent before they hit bottom.In an interview with Reuters Insider, Alpert said the housing recovery still faces “enormous headwinds” from a combination of shadow inventory, flat demand and a collapse in wages.
Comparing any static figure, like today’s home sales figures, to the larger picture is “apples and oranges,” he said.
He also said he agreed with Amherst Securities’ Laurie Goodman’s assessment that defaults over the next six years will reach at least 7.5 million.
“Her rationale is about the best in the market,” he said.
Finally, the housing recovery could be hampered by what he sees as an oncoming post-liquidity bubble “retrenchment,” though this would also have the perverse effect of keeping interest rates low.