For a while, it seemed the housing crisis had been averted. Earlier this year, prices started inching back up, foreclosures slowed and falling mortgage rates were expected to boost sales. The government's housing credit of $8,000 helped cause a spike in home sales, but the effect quickly wore off.

Now, Gary Shilling, president of economic consulting firm A. Gary Shilling & Co., says an excess of homes on the market remain unsold. Because of that, he believes that instead of getting better, housing prices could fall another 20%, which would lead to a rise in foreclosures.

Watch the short video above for Shilling's insight.

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