Yahoo News on the Daily Ticker has the spectacular headline of “Shiller: Housing Could Fall Another 25% But Is Harder to Predict Than the Weather.”
The media is not to be trusted on delivering worthwhile news. Remember, they are in the business of driving traffic which allows them to sell more advertising impressions. Shiller is misrepresented in this headline in my opinion but it will drive traffic and get attention.
Robert Shiller, Yale Professor, and co-developer of the Case-Shiller Home Price Index, did make an interesting statement that housing prices have remained flat adjusted for inflation from 1890-1990. After 1990, home prices took off. Right now we are back to 2000-2003 depending on which index you look at. Could housing fall to 1990 levels? It’s hard to say and is almost impossible for anyone to predict.
Related articles
- HOLY COW: Robert Shiller Could Easily See Another 25% Drop In Home Prices (businessinsider.com)
- Case-Shiller Index: Minneapolis Leads Decline in Home Prices – Down 10% Year Over Year (johnmurphyreports.com)
- Shiller: More Expectations Theory, Less Efficient Market Hypothesis (ritholtz.com)
- USA house prices, ok or not? (propellresearch.wordpress.com)
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