Posted by John Mauldin

We are going to quickly review a few charts from Gary Shilling’s latest letter, where he reviewed the housing market in depth. Bottom line, the housing market has not yet begun to recover and it is not only going to take longer but the decline in prices may be greater than many have forecast. I wrote three years ago that it could be well into 2011 before we get to a “bottom.” That may have been optimistic, given what we will cover in this letter.

This seems to be a realistic view of the market. I’m not sure we’ve seen the bottom and I certainly haven’t seen any increase in activity.