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Robert Shiller On The Current State Of The Housing Market

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Nobel Laureate economist and Case-Shiller Index co-founder, Robert 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, yeah, they are still going up. They are going up just about on expectation […] people are expecting something like 4.5 percent 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. This is a pattern here, I think. It is glamor cities, beautiful places that have been the most bubbly in the past. I don't know what accounts exactly for the 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."

 

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