Real estate prices can collapse 35% in the next three years and that translates to a 10% fall in GDP.
Sam Adelton
Sep. 19, 2006

The real estate market finally have started sliding downward and it can slide 35% from the peak very fast in three years. Real estate prices can collapse 35% in the next three years and that translates to a 10% fall in GDP.

As the prices of real estate collapse, consumer retail buying will come to a halt. 70% of the US economy depends on the retail sales and consumer buying. According to some econometric models, the economy can slide 10 to 18% in the next three years because of falling real estate prices and resulting lack of retail buying by consumers.

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