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S&P/Case-Shiller Index Co-Author Robert Shiller on the latest drop in home prices.
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It's actually really testing to see.
About people's psychology in what they're thinking about when these numbers come out and it -- and that's very same -- the one that just talking about the consumer confidence survey.
5% of the respondents only 5%.
Said that they plan to buy a home within the next six months that came from the conference board this morning.
As well if you look and abide may be may be the time because the latest as -- PK Shiller data.
Shows march home prices went down and into cities posting a rise in -- this month over month Seattle.
And Washington DC.
Robert -- the co author of course.
SP Case Shiller -- with -- -- of first on Fox Business interview.
But that's kind of just to follow up on what Jeff is talking -- confidence and a lot of this with the home market.
And the prices has to do with confidence only 5% I think the low was one point 9% last July but still historically that's a low number of people with.
Are interested or thinking about buying -- home.
-- -- -- -- -- -- -- That can confirms what the national association of homebuilders have been saying with there they have a traffic of prospective home -- Index and that's way down people just have lost interest in buying homes.
Tell me what's going on -- right now because as the front cover the New York Times talks about this morning and then your numbers.
Confirm -- the new low in home prices and their contention or their question is does that mean that people.
This whole idea American dream of owning a home is kind of going by the wayside or at least is not as important to people that people that can afford to buy a home or more willing or more content.
To rent -- -- is that a -- Yeah this term American dream with -- in the 1930s by James truth Adams.
After another bust in home prices.
I don't know that it's inherently American that I guess that we probably will be a nation of homeowners for a long time but I think -- you are right -- -- Pulling back we're not so sure after a bubble is changing.
You see that yes and people are less inclined to think of how -- -- as an investment.
They Arab mark I think renting you will come back somewhat but.
Still you know I think this is a country of homeowners.
OK so that that part of it is not necessarily gonna changes you look at some of the numbers today and they were brutal.
The numbers in Europe in death today -- we're gonna say about.
They say that there is a problem if people want more the -- Then housing as south of the existing housing stock is not well suited as rental they're scattered property is that.
Right -- I think that -- secede suggests that maybe home prices will fall further in the in the suburbs and areas like that.
So that's that was going to be my next question because every time you're in we talk about the potential that we've reached the bottom because the prices.
Keep going down if you look at the home prices for -- the home sales on the on the screen right now but the prices keep going down and you.
And you sit and you try to get put yourself in someone's head or your you maybe people watching -- in this position where they're thinking.
All right maybe now finally the bottom has been reached I'm gonna buy a home but what makes that person say.
Now I'm gonna buy verses you know what I'm just gonna -- it -- wait a little while because -- that kept going down they're gonna keep going down and I'll wait another few months or however long.
Well I think people are worried that they might keep going down and how they can do -- they did -- in Japan home prices fell for twenty years and in Japan.
After a bubble -- up takes it from his take a long time to be able to get their enthusiasm that -- home prices fall for twenty years here.
They'd done it before.
At least in real terms in the early twentieth century.
Yes I'm I'm optimistic that things might do that for good way to ahead.
It -- a good thing for America if the housing construction industry gets ever more efficient.
For produces.
They've been doing that they produce more and better houses that's what we want that's the American dream affordable housing for everyone.
I'm in a repeat we just said I'm optimistic.
That home prices could fall for twenty years.
Well it is our income dissolved -- and the presidents and -- more importantly -- are -- I guess sell but it's just say since so startling to hear it.
Is that what you're are you making a prediction or as a normal hold out -- a prediction.
I don't know exactly how to predict the I think there's a risk that they will continue to fall which is.
You know bad for someone who's holding housing as an investment but good for some our children and the next generation that they can -- housing will be affordable so you think there's a risk Bob -- ethics that's the American way we have.
Technical progress we have businesses that -- specialize in home production.
And but what -- they they produce maybe a few too many in the short run -- -- a lot of turmoil in the housing market but they're gonna continue to to.
And and then they'll build rental properties that are highly desirable to could it is so it could be it is a risky to be a twenty year downturn.
-- home for -- you said that but I have to you know I have to say that it happened in Japan.
It is happened in the US before you act could happen while it's -- it's it's not terrible it's.
I don't like getting excited about -- -- not just -- -- the questions here.
You're the one -- I get excited to announce that from the standpoint of someone who bought two houses and is expecting to make a lot of money down but it you know it's not a bad future of this country -- we'll take your word for it we've been right about the stuff a lot of times basket to see about the way and -- that.
The -- of all this great news that Jolie's pregnancy each month we'll look forward to a next month don't have upturn soda and people don't break did dolce and -- thanks for stopping by Bob -- that's.
