Yale Economics Professor Robert Shiller | Maybe No Housing Rebound for a Generation

Maybe no housing rebound for a generation: Shiller

NEW YORK (Reuters) – The Housing market is likely to remain weak and may take a generation or more to rebound, Yale economics professor Robert Shiller told Reuters Insider on Tuesday.

Shiller, the co-creator of the Standard & Poor’s/Case-Shiller home price index, said a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.

“I worry that we might not see a really major turnaround in our lifetimes,” Shiller said.

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4 Responses to “Yale Economics Professor Robert Shiller | Maybe No Housing Rebound for a Generation”
  1. Eric Welch says:

    The elephant in the room, it seems to me, is title ownership. I’ve told all seven of my kids that for the foreseeable future they shouldn’t even consider buying a house until the banks can prove they actually have clear title to a home and that it’s registered with the appropriate county clerk. The way mortgages were tranched and split up I seriously doubt if anyone could guarantee clear title. Fortunately, I bought a house to live in, rather than as an investment, and it’s totally paid off, no mortgage. You might ask about title insurance? That’s a joke. If the title company that insured your mortgage’s title is purchased by another company, they are under no obligation to do anything should there be a challenge to the title. This happened to me when we took over the mortgage to my daughter’s house and then sold it. The County Clerk where the deed was registered said it was missing a particular paper which had not been filed. The title company used at the time of the transfer had been purchased by the title company doing the work on the sale and they refused to have anything to do with the problem. Fortunately, my daughter had kept all of her paperwork, had the needed form, and we were good to go. If she had not had that form, I doubt if the sale would have happened. Houses are to live in, not to use as an atm. If they gain in value over 20 or 30 years, that’s fine, but it should not be the primary reason for buying a house.

  2. I remember when experts told us interest rates would never fall below 7%.; house prices would only go up but never down; mortgage foreclosures in the worst RECESSION since the Great Depression never exceeded 2 1/2%; FNMA and FRMAC were highly profitable and rock solid financially; and AIG was the reigning titan of the insurance industry. The roller coaster of the economic cycle has not ceased operation. The economic engine that enables the economy to roll down to the bottom also allows it to climb back to the top.

  3. Peter Everts says:

    Pitchforks and torches. Kill the monster in its castle.

  4. Lets see, two foreclosures, one short sell, exiting condition so no medical coverage for the other 20%, retired prior to when a person wanted too retire!! There are more stories like mine than you would think! Rents will go up, as well as prices for the homes, the banks know this, that is why they refuse to assist anyone, a young family that paid 600+ for a home, no assistance to lower their mortgage, moved down the street to pay 2000, another family moved to pay 2300, both their homes were off 75?% no one came to help them and they both had good jobs!!! My home that I was tryijng to keep they had advertised/sold prior to court date and refused even a short sale!! that was Federal Housing, they are not looking to help anyone that had purchased a home prior?? on owned more than one?? requirement was personal residence?? well if they take away one wouldn;t the one you moved into qualify! I disagree about the market, it will turn around and it is turning around, it just is very selective who is going to get back on top, and it doesn’t look like seniors stand a fighting chance unless they live until 80 without any health issues, no gaurentee for that!

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