Have housing prices bottomed out? The answer is not yet, according to Robert Shiller of the now famous S&P Case-Shiller Home Price Index. In fact, Shiller believes that housing prices still have a lot of room for correction. Tim Iacono takes a look at a recent interview Shiller had on Fox Business in his blog post below.
Yale economist Robert Shiller talks about the latest release of the S&P Case-Shiller Home Price Index and, again this month, is exceptionally gloomy about the path forward.
Shiller thinks that there are just too many forces working against the housing market this year and that rising oil prices and the threat of a new recession make the idea of prices “bumping along the bottom” an optimistic scenario.
I worry that home price might fall – not just a little – but 15, 20, 25 percent in real terms … that would bring us back down to the long run average. You know, home prices haven’t really trended up in real terms over the last century.
He also spoke with Tom Keene at Bloomberg yesterday – that interview is here.
This post was republished with permission from The Mess That Greenspan Made.