Maybe no housing rebound for a generation: Shiller

NEW YORK Tue Apr 24, 2012 11:20am EDT

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NEW YORK (Reuters) - The Housing market is likely to remain weak and may take a generation or more to rebound, Yale economics professor Robert Shiller told Reuters Insider on Tuesday.

Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, said a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.

"I worry that we might not see a really major turnaround in our lifetimes," Shiller said.

The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.2 percent in February on a seasonally adjusted basis, the first uptick in prices in 10 months.

But Shiller called it "a very mixed bag." Nine of the 20 cities recorded falling or flat prices on the month.

He said suburban areas in particular might endure further price declines as high gas prices increase demand for "walkable cities."

(Reporting by Steven C. Johnson; Editing by James Dalgleish)

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Comments (4)
USAHouses wrote:
I am a Real Estate Broker and have been in Real Estate for many years, yet in recent years have seen many things which confuse me. It baffles me how experts can study the market and share facts like these, but most of the idiots reporting the news simply regurgitate what their foolish peers publish and mislead people time and time again, to the demise of America. We are seeing much of the media’s spin playing out with a failed economy, millions of jobs lost by Obama in the past 40 months, and trillions of dollars given away to his business associates, yet the White House and the media is reporting the jobs market and economy and housing market are improving since Obama has taken over. We have more than $5 trillion in US debt added since Obama was declared by the media to be our President (but the guy isn’t even eligible to be our President) and since that time over 6.5 million jobs have been lost!

Many have lost their savings and credit lines purchasing and maintaining and improving their homes, and then the banks have forced them out illegally, and then the steal their homes and then the government gives the banks more money on top of all that, to further insult Americans and steal from them.

WTF? Where’s The Future? You are right, no improvement in sight.

Thank you Reuter’s for sharing this as the facts are, and not spinning the lies most do. You have stated who this expert is and what his opinion is. You have not made people believe foolish idiot statements like Obama makes telling the world “Republicans want you to have dirtier air, dirtier water, less people with health insurance” etc.

Apr 24, 2012 6:49pm EDT  --  Report as abuse
ckbryant wrote:
Rebound? Why would there be a rebound? House prices are roughly at their long-term trend right now. We would expect them to grow at roughly zero percent, after adjusting for inflation–as they have done for the last hundred and twenty years. Professor Schiller should know that better than anyone. Why would he be talking about a rebound? There was a bubble, it burst, and now this is the world we live in.

Apr 25, 2012 3:08pm EDT  --  Report as abuse
TrueTrue wrote:
“I worry that we might not see a really major turnaround in our lifetimes,” Shiller said.
Is Shiller merely saying ‘no more bubbles’ for a very long while? The New York Times here
“Two gains in recent decades were followed by returns to levels consistent since the late 1950s.”
Following the 2006 price peak, we are again down close to “levels consistent since the late 1950s.”. See:

How about: “No more bubbles is what we want!”.

Apr 25, 2012 4:38pm EDT  --  Report as abuse
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