It could be a long slump.
Housing prices in Massachusetts and the nation likely will keep falling through next year and beyond, according to a growing chorus of economic forecasters.
Eric Rosengren, president of the Federal Reserve Bank of Boston, told a Hartford audience yesterday that the current housing slump could be the longest in 50 years, increasing the risk of a broader economic downturn.
Rosengren said spending by home buyers has declined in every three-month period since the beginning of 2006, and likely will continue to fall through at least June 2008. That would be the longest downturn since 1958.
Falling home prices hurt the broader economy, in part by reducing consumer spending, Rosengren said. In turn, a broader economic decline cuts spending on housing. The back-and-forth can create a downward spiral.
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