Recent housing and employment data suggests the economy is at a tipping point, while home prices could have much further to fall. "My gut feeling is we might see a continuation of the decline (in home prices)," Shiller said.
He added that a 10 to 25 percent slump in real home prices "wouldn't surprise me at all," though he cautioned that was not a forecast.
Speaking at the Standard & Poor's housing summit, Shiller said recent data showing U.S. home prices fell into a double dip in March could prove to be either a seasonal effect over the winter months or part of a downward trend.
Another uptick in the unemployment rate might also start to point to a double-dip recession, he said.
Shiller is the co-founder of the S&P/Case-Shiller home price index and is known for warning about bubbles in the stock market and housing market.
