ROBERT SHILLER: THERE’S MORE DOWNSIDE IN HOUSING PRICES

Robert Shiller of Yale, one of the few economists with a good long-term track record calling house prices, sat down with the Wall Street Journal to discuss the latest house price data. Although we’ve been seeing a few signs of stability in recent data Shiller is not terribly optimistic about the long-term outlook. The key points from his comments:

The trend looks steady down.
Prices are back to their 2002 levels.
Bubbles tend to overshoot on the downside.
He doesn’t think home prices are likely to climb any time soon.
Without a change in consumer sentiment home prices will remain in a funk.

See the full interview here:

About Post Author

Cullen Roche

Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds. Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.

See author's posts