Single-family home prices rose in August, posting their strongest annual gain in more than seven years, according to the S&P/Case Shiller Home Price Index data released Tuesday.
And while Case Shiller data shows home prices have risen 12.8% over last year, data shows the pace of home value appreciation has slowed quarter to quarter this year.
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So how is the the co-founder of the S&P Case/Shiller Home Price Index (also a 2013 Nobel Prize-Winner in economic sciences) thinking about home prices, and is he worried about another housing bubble?
In an interview with The Daily Ticker, Shiller says home prices on a national basis are reasonable and he is not too worried about bubbles right now.
“We just went through the biggest bubble in U.S. history, so I wouldn’t expect that to repeat...maybe not in our lifetimes,” he tells us in the video above.
One reason he cites is homeowner expectations. According to Shiller, in the short-term, homeowners expect price gains of 8%, but over the long-term, homeowners are only expecting 4%, "which is reasonable," he says.
Check out the video to see more of what data he is looking at that indicates to him we are not in bubble territory, but why he’s still not sure about prognosticating the future of housing.
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