Robert Shiller, a professor of Economy at Yale and co-author of Case/Shiller Housing Price Index, was recently interviewed on Fox Business network.
the interview took place in May when there was much less talk of a double dip, and housing prices were rising. General sentiment was much more positive when the interview took place. Shiller stated that the tax credit had a huge effect on housing prices, and were responsible for the positive numbers. However, Shiller states that going forward with no tax credit it is impossible to predict what home prices will do.
If he had to make a prediction he would guess a decrease in home prices of 10%. He thinks we might see a dip in both the housing market, and the economy. The long term unemployment rate really bothers Shiller, and he does not see progress being made on that front.
Shiller recommends scaling back Fannie Mae, and Freddie Mac but still keeping them intact. He also recommends cutting the mortgage rate deduction that people can claim on tax returns.
Below is the video:
the interview took place in May when there was much less talk of a double dip, and housing prices were rising. General sentiment was much more positive when the interview took place. Shiller stated that the tax credit had a huge effect on housing prices, and were responsible for the positive numbers. However, Shiller states that going forward with no tax credit it is impossible to predict what home prices will do.
If he had to make a prediction he would guess a decrease in home prices of 10%. He thinks we might see a dip in both the housing market, and the economy. The long term unemployment rate really bothers Shiller, and he does not see progress being made on that front.
Shiller recommends scaling back Fannie Mae, and Freddie Mac but still keeping them intact. He also recommends cutting the mortgage rate deduction that people can claim on tax returns.
Below is the video:
