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Yale University professor Robert Shiller gives his outlook for the housing market.
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Quarter at their lowest levels since the housing crisis started.
Back in mid 2006.
Can you need that's been going on for six years -- according to Standard and Poor's case Shiller home price index.
One of the co authors of that Bob Shiller is joining us now but he is also author of finance.
And the good society and think back when home prices they can it really is stunning that they are still falling out.
Well falling depending on how you want to look at unchanged month over month in the non seasonally adjusted and.
You know yes.
Yeah that downtrend but you know we had home prices going up for almost a decade before that Aaron.
So home prices show a lot of momentum they're not like the stock market.
And the real question is do we still have downward momentum there's a lot of positive signs now.
But you know a skeptic who believes in momentum and has this been going on now for six years might well say that and I -- it's a little bit of that -- -- Might well -- is gonna keep going down after after this season -- you know blip is over and we.
It may not be over.
I was at what point what's it gonna take to stop that downward momentum you think.
Good if you couldn't you got a record low mortgage rates may that is not well.
You know one thing is that home prices are way down and they -- affordable now they've been not overpriced anymore.
Mortgage rates by the problem is that people can't get mortgages.
And the problem in there's lot of anxiety about the future with the national debt with FCK with.
Fannie Mae and Freddie Mac under consideration of what are we gonna do what's gonna.
-- outlook for selling your house in five years and that's.
Weighing on people's cell.
Let me use this inverse logic if it longer term interest rates started going -- Would that get people off -- home buyers off the sidelines if they thought they couldn't wait any longer.
They're not going up how high that it -- bottoming but Bob all quarters said that like.
You know Jazeera asked him for vanguard just to Europe have the potential to just to make our treasuries like grossly overvalued and they answers right.
You got it exactly that it looks very affordable now and it.
It might be an opportunity of a lifetime but then again the might be even better opportunity and another year and that.
And when people have you know some still anxiety about their employment and -- I think people are waiting.
Bob one last thing to what.
Look at the markets what do you what is the healthiest market out there the housing market.
But what is the healthiest or you can answer that well I don't know what is -- is tetanus toxin -- -- Suddenly the housing market -- that the market that looks most impressive -- -- Phoenix.
And I wouldn't say healthy.
There -- any there there seems to be a bit of a boom going on there and and there's excitement.
And is interesting to see that it is speculative excitement can come back to the housing market at least in Phoenix -- deflating.
Good question you know we saw that.
-- seen that kind of thing haven't San Francisco and in -- 2009.
Head of really strong up.
Uptick and then it disappeared -- these -- -- not guaranteed to continue but you have these that looks exciting in Phoenix at the moment.
I had to again animal spirits can stirring comeback -- event and you guys are obvious great to -- thank lynch Bob Schiller of case -- also a professor yeah.
