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Why the Housing Market Won't Crash Like 2008: Robert Shiller

Mark Kolakowski

A sharp slowdown in the housing market has led to worries that a repeat of the subprime meltdown of 2007–08 might be brewing, but the Nobel Laureate economist who predicted that crisis believes that such fears are overblown today. While noting that home prices having been rising since 2012, Professor Robert Shiller of Yale University told CNBC: "A housing bubble is not much in evidence...It's not the same. The SPDR Homebuilders ETF ( XHB) plummeted by 81% between March 17, 2006 and March 9, 2009, based on adjusted closing prices from  Yahoo Finance. This year, as of the Oct. 29 close, it is down by 32% from its 52-week high set in intraday trading on Jan. 24. Some recent signs of stress in the housing market are summarized in the table below.