Growing homebuyer reluctance could bring down real estate prices: Robert Shiller
July home prices cool at fastest rate in history of Case-Shiller Index as mortgage rates near 7%
Yale economist Robert Shiller provides professional analysis of the real estate market as the U.S. stock markets continue to slip on ‘Cavuto: Coast to Coast.’
During an interview on "Cavuto: Coast to Coast," Thursday, Yale economist Robert Shiller analyzed America's red-hot housing market, arguing that the average home price is "slowly" beginning to soften amid buyer "uncertainty."
ROBERT SHILLER: Florida is a volatile state. It's glamorous. It's beautiful. They're the most famous early home price bubble occurred in Florida in the 1920s...I think that we are living in an uncertain time. People feel very uncertain and anxious. So there could be a reluctance to buy in the near future. And that would bring prices down.
NEIL CAVUTO: But would those prices crash?
A for sale sign stands in front of a house, Tuesday, Oct. 6, 2020, in Westwood, Mas (AP Photo/Steven Senne) ( (AP Photo/Steven Senne) / AP Newsroom)
ROBERT SHILLER: I don't like the word crash. It took six years to reach bottom after the 2005 peak. I'd like to talk in real terms. Real housing prices corrected for the CPI. And the peak was actually in December 2005, not 2007, 2008, as we think of. That was a delayed effect. It took six years. It wasn't until 2012 that home prices started going up again. So these things are very slow, and it's not like the stock market.
MORTGAGE RATES RISE FOR THE SIXTH CONSECUTIVE WEEK
WATCH THE FULL INTERVIEW HERE:
Yale economist Robert Shiller surveys the real estate market as mortgage rates race towards 7% on ‘Cavuto: Coast to Coast.’