Money and Finance
Link
- Robert Shiller: A Housing Bottom? What Are They Thinking?
BLODGET: A lot of people have just called the bottom in the housing market in the United States, and there's been some okay data recently. Is that your take? That finally housing prices are bottoming? SHILLER: When people phrase is that way, they...
- Excerpts From The 2006 Fomc Transcripts
Excerpts below were posted by Binyamin Appelbaum at the NY Times. I found via Calculated Risk. The transcripts are located HERE. I think the Galbraith quote from two posts ago is worth repeating here: "There are two types of forecasters; those who don't...
- The End Of Australia’s $2 Trillion Housing Party - By Philip Soos
Found via the Corner of Berkshire & Fairfax. Executive Summary A great deal of debate has occurred in Australia on the notion that the residential property market may be experiencing a bubble, set to burst in a similar fashion to that in the United...
- Rethinking Our Debt Payoff Plan
I'm sure most of you know that last year my wife and I bought a house. While we love the house the unfortunate thing is that we went from renting a fairly small house to owning a much larger one. One of the hidden costs in making that move was...
- Weekly Roundup - November 16,2013
It's been a pretty busy week but also a relaxing week. I've been on vacation this past week, although all I've done is be at the house. I've been working on a bunch of stuff around the house and also with the blog. My wife and I...
Money and Finance
Yale Professor Robert Shiller: Is this Housing Boom Going to Last? I Think Not
Found via ValueWalk. It sounds like Shiller overall still thinks housing is attractive, though prices are vulnerable and can't continue rising at this pace. He basically thinks house prices are about normal right now. He mentioned a bump up in prices in 2009-2010 (upwards of 20% in San Francisco) before prices collapsed again and said that could happen again, though he stressed that these things are hard to predict.
A good quote from the interview: “Buying a house is good for people in a certain situation in life. If you have a steady job, maybe you have a family with children, you expect to stay here a long time…I think it’s, right now, a good idea to buy a house and lock in for 30 years at this mortgage rate of 4.5%. Because that’s still low by historical standards. It’s still pretty good. But if you’re not in that category, and even if you are in that category, you shouldn’t reach for a huge house that you don’t need. And if you’re not in that category, you’re probably better off renting. It’s not like you have to get into this market because it’s soaring. There [are] uncertainties about this market…. And for many people, renting is just more practicable than buying a house.”
A good quote from the interview: “Buying a house is good for people in a certain situation in life. If you have a steady job, maybe you have a family with children, you expect to stay here a long time…I think it’s, right now, a good idea to buy a house and lock in for 30 years at this mortgage rate of 4.5%. Because that’s still low by historical standards. It’s still pretty good. But if you’re not in that category, and even if you are in that category, you shouldn’t reach for a huge house that you don’t need. And if you’re not in that category, you’re probably better off renting. It’s not like you have to get into this market because it’s soaring. There [are] uncertainties about this market…. And for many people, renting is just more practicable than buying a house.”
As a side note, Mark Hanson also had a new post a couple of days ago (HERE) and he seems pretty bearish on prices going forward.
Link
- Robert Shiller: A Housing Bottom? What Are They Thinking?
BLODGET: A lot of people have just called the bottom in the housing market in the United States, and there's been some okay data recently. Is that your take? That finally housing prices are bottoming? SHILLER: When people phrase is that way, they...
- Excerpts From The 2006 Fomc Transcripts
Excerpts below were posted by Binyamin Appelbaum at the NY Times. I found via Calculated Risk. The transcripts are located HERE. I think the Galbraith quote from two posts ago is worth repeating here: "There are two types of forecasters; those who don't...
- The End Of Australia’s $2 Trillion Housing Party - By Philip Soos
Found via the Corner of Berkshire & Fairfax. Executive Summary A great deal of debate has occurred in Australia on the notion that the residential property market may be experiencing a bubble, set to burst in a similar fashion to that in the United...
- Rethinking Our Debt Payoff Plan
I'm sure most of you know that last year my wife and I bought a house. While we love the house the unfortunate thing is that we went from renting a fairly small house to owning a much larger one. One of the hidden costs in making that move was...
- Weekly Roundup - November 16,2013
It's been a pretty busy week but also a relaxing week. I've been on vacation this past week, although all I've done is be at the house. I've been working on a bunch of stuff around the house and also with the blog. My wife and I...