One of the most prominent thought leaders in housing is looking at the market with significant apprehension.
In an interview with the Daily Ticker, Robert Shiller, co-creator of the S&P/Case-Shiller Index and a professor of economics and finance at Yale University, expresses concern that the housing market ‘is becoming more of a speculative asset.’ He stresses that housing remains ‘very abnormal’ because the federal government underwrites the majority of new mortgages, and he warns that a rapid recovery is not in the foreseeable future.
‘People shouldn't assume the housing market is off to the races,’ says Shiller. ‘[For] the country as a whole, it's rather unlikely that we'll have another boom like the one we recently had because that's such a rare and unusual event.’
Shiller adds that investors should view housing as a risky asset and consider renting a house while placing money for a home purchase into a ‘real diversified portfolio.’