Robert Shiller On The Current State Of The Housing Market

While there are many ‘experts’ on the Street who make a living from predictions, only few of them can boast of having a consistent track record of accurately predicting the market moves. Nobel Laureate economist and Case-Shiller Index co-founder, Robert Shiller, is one of those rare gems.

Shiller was recently on CNBC to discuss the moderated price gains in the housing market.

Moderated Price Growth And Sluggishness In The Housing Market

“Well, what we are seeing is a, yeah, they are still going up, they are going up just about on expectation […] people are expecting something like 4.5p price increase per year for the next 10 years, so far we are right on track. I think, our optimism came up really rebounded from the bottom […] and is tempering a bit, but it’s not a dramatic change,” Shiller said.

When asked regarding whether some cities showing higher growth than the national average is a sign of growth accelerating in the housing market from here on, Shiller replied, “Yeah, the two best cities on a 12-month basis are Miami and San Francisco and this is apparent here I think. It is glamour cities, beautiful places that have been the most bubbly in the past. I don’t know what accounts exactly for this big price increases in those cities, but I suspect it’s something to do with their history of speculative bias. I don’t think of it as a good sign, I think it is getting a little too bubbly in San Francisco.”