Case-Shiller Index co-author Robert Shiller spoke with FBN’s Connell McShane about data out that home prices rose 0.7% in April on a non-seasonally-adjusted basis. Shiller said that while he is optimistic about the increase in home prices, “this is mostly just a seasonal thing; every summer home prices tend to go up more.” He went on to say the unrest in Europe is “weighing on our national psyche” and could ultimately impact the United States housing market because home prices “are driven by confidence” and the debt crisis in Greece “is a story about our problem indirectly because it’s the debt problem.” Excerpts from the interview are below, courtesy of Fox Business Network.
On whether unrest in Greece or other European countries could send the United States housing market further downward:
“Yes. These things are driven by confidence. Those film shots of people rioting in the streets; it spreads to another European country which it well might. It is a story about our problem indirectly because it’s the debt problem and that’s weighing on our national psyche right now. We are not Greece. This country has the best reputation financially in the world. That’s why treasuries are selling at such good prices despite our debt crisis because people see this as a stable country. It’s hard to knock the U.S. off the pedestal it has had for the past 100 years.”
On whether he is more optimistic about a recovery based on the latest housing numbers:
“Yeah I am. A little bit. This is mostly just a seasonal thing; every summer home prices tend to go up more. It’s still down on the 20 city index but only incrementally. It could be a good sign. It’s too early to come to any conclusions. We have been in a down trend for five years. That’s why I haven’t been forecasting price declines further but it’s certainly a possibility that it’s not over.”