Shiller: Housing Market Is ‘Very Abnormal’

Posted by Orb Staff on March 19, 2013 No Comments
Categories : Residential Mortgage

13494_robert_shiller Shiller: Housing Market Is 'Very Abnormal' One of the most prominent thought leaders in housing is looking at the market with significant apprehension.

In an interview with the Daily Ticker, Robert Shiller, co-creator of the S&P/Case-Shiller Index and a professor of economics and finance at Yale University, expresses concern that the housing market ‘is becoming more of a speculative asset.’ He stresses that housing remains ‘very abnormal’ because the federal government underwrites the majority of new mortgages, and he warns that a rapid recovery is not in the foreseeable future.

‘People shouldn't assume the housing market is off to the races,’ says Shiller. ‘[For] the country as a whole, it's rather unlikely that we'll have another boom like the one we recently had because that's such a rare and unusual event.’

Shiller adds that investors should view housing as a risky asset and consider renting a house while placing money for a home purchase into a ‘real diversified portfolio.’

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