Shiller notes that housing is much less attractive this year than it was a year ago. This is because housing prices have increased but also because interest rates are up a full percentage point.
He does still think that for many people buying a house is good. For people with a steady job and plans to stay in the house for a long time, buying a house and locking in a rate at 4.5% is a good idea.
What makes him nervous though is the presence of giant investment firms like Blackstone which will start selling huge volumes of houses at some point when they think prices are higher.
Overall Shiller thinks that houses are at a normal level.
He does still think that for many people buying a house is good. For people with a steady job and plans to stay in the house for a long time, buying a house and locking in a rate at 4.5% is a good idea.
What makes him nervous though is the presence of giant investment firms like Blackstone which will start selling huge volumes of houses at some point when they think prices are higher.
Overall Shiller thinks that houses are at a normal level.
