Consumers have taken a much more positive view of homeownership amid a recent meteoric rise in home prices. That’s raised fears that the self-reinforcing belief in always-rising home prices that helped inflate the housing bubble may again be taking hold.

But Robert J. Shiller, co-creator of the S&P/Case-Shiller Indices, writes in The New York Times that a survey he’s conducting provides three primary indications that Americans are still far from “irrationally exuberant” about the housing market: Price expectations are still far below where they stood during the housing boom; a substantially smaller proportion of people believe that homeownership is a superior investment; and a much larger proportion of buyers purchase homes for the purpose of renting them.

Source: The New York Times

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
New sessions have been added to Connect Now Agenda on October 20th! Check out the power-packed lineup. SEE THE AGENDA×