Robert Shiller, Yale Economics Professor and co-creator of the S&P/Case-Shiller Home Price Index, was on WSJ Hub Extra talking about the recent trend in home prices. The recent price decline was not expected according to a Bloomberg survey. Shiller was wondering if the 3-month downtrend would continue, and if so, the market follow suit. However, Congress could step in again with an additional tax credit or stimulus measure. The odds of that happening compared to 2009 are lower.
Light at the end of the tunnel: Shiller's professional forecasters (on average) at his firm Macro Markets see home prices up 7% by 2014, but could get pessimistic after this read. Just a blip? For a housing battle read Housing: Bill Ackman vs Gary Shilling at Felix Salmon's blog. Also read Roubini: 'Housing Prices Can Only Move Down' at CNBC NetNet. See the WSJ video after the jump.
"U.S. Home Prices Weaken Further as Six Cities Make New Lows According to the S&P/Case-Shiller Home Price Indices