Robert Shiller: Housing Is Improving But Don't Get Excited

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Jan 18, 2013
Well-known Yale professor and co-creator of the Case-Shiller Housing price index was on CNBC to discuss his outlook for housing in the long term in light of recent data showing positive up trends.

-- Housing appears to be improving.

-- But don't get excited; we have seen a similar six-month up trend turn negative so we should wait more before we can call victory.

-- But at this point the housing recovery seems to have legs.

-- In some ways the scenario in the U.S. is similar to Japan given very high unemployment and there is risk of deflation.

-- Number of homes underwater is declining as home prices increase and if the trend continues, the whole problem of bad mortgages and shadow inventory with banks will disappear

-- But until that happens we are going to see more foreclosures and shadow inventories with banks.

Credit and source: www.cnbc.com, CNBC

Here is the video: