Housing market could be Bernanke’s greatest challenge

Miami /
Aug.August 26, 2009 12:09 PM

 

CNBC’s Erin Burnett led a discussion yesterday on why the housing market could be Fed Chairman Ben Bernanke’s biggest challenge to economic recovery. Citing a comment from Case-Shiller co-creator Robert Shiller, in which the Yale professor predicted that home prices would increase by just 6 percent in the next five years, CNBC correspondent Diana Olick commented that the housing market outlook could be even bleaker. “Three factors were left out [of Shiller’s report] that could be actually juicing the numbers to the upside,” Olick said, referring to the first-time homebuyer tax credit, the second-quarter foreclosure moratorium, and the fact that Shiller’s data was not seasonally adjusted. Bianco Research CEO James Bianco agreed that the market future could be rougher than thought. “The low-end home prices are really moving up,” Bianco said, but added that this was largely due to the $8,000 tax credit for first-time buyers. “The middle- and high-end [are] not moving up. What happens when those tax credits come off and the moratoriums come off — does the market sink back down?”


Related Articles

arrow_forward_ios
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
Knock expands home lending program into South Florida 
Knock expands home lending program into South Florida 
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley
Baptist, Belmont gain approval for luxury senior living in Coral Gables
Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)
Sunrise affordable senior housing facility sells for $30M
Sunrise affordable senior housing facility sells for $30M
Mark Zilbert
Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...