Shiller sees possible return of housing bubble
July 13, 2009 01:15PM
Robert Shiller
Once the excess housing inventory now on the market has been sold, Yale economist Robert Shiller says another housing bubble is possible. Shiller, co-creator of the Case-Shiller Index, which measures housing prices nationwide, said people are speculative enough about buying real estate that a bubble could happen. Boston is one housing market where such a bubble might take place, because the city's property market has not fallen as drastically as other cities' housing markets.
[Yahoo]
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Comments
Anonymous
probably the same holds true for NYC. People buying thinking the market is near bottom, when it actually hasn't fallen enough.
Comment #1 Posted By: Anonymous 07/13/09
Anonymous
The reason that another bubble will not happen anytime soon is tougher lending standards, the eradication of wealth/savings, rising unemployment and, most importantly, the fact that prices have not come back down to the historical trend. Sure, foreclosures are sparking some sales activity, but the prices are upwards of over half off the bubble price and are dragging the resale prices down in tandem.
Comment #2 Posted By: Anonymous 07/13/09
Anonymous
Shiller did some good fundamental research on the relationship of incomes to debt service, but he is completely ignoring the effects of the "stimulus" in the future, i.e. massive inflation. The government is directly TRYING to create another bubble, but simultaneously raise incomes as well. With any luck, the presently unsustainable debt levels will be inflated away. If it doesn't work, well.. look at Argentina.
Comment #3 Posted By: Anonymous 07/13/09
Anonymous
I'm partial to Costa Rica.
Comment #4 Posted By: Anonymous 07/13/09
Anonymous
The bubble in Costa Rica has already begun, I just sold my sugar plantation and am moving to israel to live with Shaya Boymelgreen and the Shvo
Comment #5 Posted By: Anonymous 07/13/09
Anonymous
No, no, no. Schiller is wrong. Babs Corcoran says it's a "great time to buy", so we REALLY need to be listening to her, not some data guru. Bet he won't flirt with us, either.
Comment #6 Posted By: Anonymous 07/13/09
Anonymous
Is this kind getting paid off by developers to say such non sense? I smell corruption.
Comment #7 Posted By: Anonymous 07/13/09
Anonymous
i'm with the guy moving to israel. we all need to hide. we all need to shvo.
Comment #8 Posted By: Anonymous 07/14/09
Anonymous
Hmmm. I think Bubbles are less about demand and more supply-side driven (supply of money, leveraged or otherwise). Did'nt this crisis show us that? Agree that lending standards and leverage ratios play a big part in deciding whether or not there are going to be more bubbles in real estate.
Comment #9 Posted By: Anonymous 07/14/09
Anonymous
shiller is afraid of his own shadow, and has been for many many years
Comment #10 Posted By: Anonymous 07/18/09
Anonymous
no need to worry about paying to much for property in israel just steal the property from a palestinian. Its worked for more than 60 years and still no bubble. Maybe you can get free military aid to protect the land you stole as well. Seems to be working for them. Or move into a settlement and get a stipend. Israel really hs it figurd out. No bubble in site.
Comment #11 Posted By: Anonymous 09/07/09