Robert Shiller’s take on RE market
Monday, November 12th, 2007From the latest issue of business week magazine, Robert Shiller has these several points:
1) Housing price is going through a peaking process, … will have 10% to 30# decline over the next five years.
2) Developers are disguising the price decline by throwing in SUV or granite countertops to hide the actual price drop.
3) He could not find correlation between interest rate and housing boom. High interest rate in the late 70s did not prevent a housing boom.
4) Still strength in the market: NAHB is reporting a higher traffic for prospective buyers. Short term revival is possible because human psychology may make it a self-fulfilling prophesy.




investment property