Robert Shiller: This Could Be a Really Good Time to Invest in Real Estate
As stocks hover near record highs, and housing prices notched higher in September, according to the most recent S&P/Case-Shiller report, could there be a real estate bubble looming?
Robert Shiller, who helped develop the housing survey, addressed these concerns and explained why he believes now could actually be the time to buy into the real estate sector on FOX Business Network’s Cavuto: Coast to Coast.
“Mortgage rates are still low and there could be an upswing—a continuation of the upswing we’ve seen since 2012,” Shiller said regarding the housing market. “It seems like if you look at the bond market it’s not exactly the bubble story. But there are big turning points in the bond market. One of them was around 1979-1980 when Paul Volcker took over the Fed. And interest rates were way in the double digit range. And they’ve been just coming down ever since. It’s not just the financial crisis—it has been a long trend down. And now they kind of hit zero. They can’t go much lower recently.”
Shiller added that with Donald Trump and his “very strong personality” about to move into the White House, there could be a reversal of the trend.
“We could be in for higher interest rates, both at long and short end,” he said, adding that since inflation is still “under control” the Fed won’t do any “reckless raise” of interest rates.