“Yale professor Robert Shiller is one of the pre-eminent experts in house prices.
Shiller created the “Case-Shiller Index,” which tracks changes in house prices on a monthly basis and is the most closely followed house-price index in the country.
We sat down with Professor Shiller in Davos to get his take on the future of the housing market.
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Henry Blodget: Everybody in the U.S. seems convinced that the housing market is going to come roaring back, it’s going to save the economy, house prices are going to rise, houses are a great investment again. Are they right?
Professor Shiller: First of all, I challenge your statement a little bit. The Pulsenomics survey of experts – they had 105 experts in their December survey – and not one of them predicted a return to the boom that we had. The most optimistic had a real return for the next 4/5 years of something like 6 percent.
Blodget: But that’s way better than zero.
Shiller: I’m taking the most optimistic out of 105….”
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