ECONOMY, NEWSROOM AMERICA STAFF
Yale economics professor Robert Shiller says the housing market is likely to remain weak and could take as much as a generation to recover.
Shiller, the co-founder of the Standard & Poor’s/Case-Shiller home price index, told Reuters Insider that a combination of high gas prices, a weak labor market and a general unease among consumers was trumping low mortgage rates and would likely keep prices depressed for the foreseeable future.
“I worry that we might not see a really major turnaround in our lifetimes,” Shiller said.
The S&P/Case-Shiller composite index of 20 metropolitan areas rose 0.2 percent – the first increase in prices in 10 months – in February, on a seasonably adjusted basis, Reuters reported.
But Shiller cautioned that in nine of the 20 cities prices were flat or fell for the month.
He said suburban areas could fall even further as high gas prices caused more Americans to move to “walkable cities.”
© 2012 Newsroom America.