Economist Calls Housing Market “Neutral”
Wall Street Journal, by Neal Lipshutz
That is the one-word answer given by Yale University professor and noted housing and markets expert Robert J. Shiller when asked to describe the current state of the U.S. housing market.
“It’s going up in the short run. What it will do in the longer run is hard to say. Maybe it will go down,” Mr. Shiller said in an interview on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland.
Housing is still a “somewhat risky investment,” said Mr. Shiller.
Asked if his view is more pessimistic than others who see housing prices and sales rebounding after a late-2000s collapse that ignited the financial crisis, Mr. Shiller responded that those who study housing closely don’t have extremely rosy views.
“Experts do not seem to think, any of them, that we are going back to the same boom,” he said. There might be “cheap talk” that housing is “off to the races again,” but people “who think about it seriously doubt it,” Mr. Shiller said.