Bottom Dwellers Waiting to Pounce
The Wall Street Journal and The New York Times both published articles in the past six weeks stating that the housing market has reached a bottom. But hold on for just a minute… It seems that not everyone believes it.
Even Yale professor Robert Shiller, co-founder of the S&P/Case-Shiller Home Price Index, admits to being a little bit skeptical. In fact, he even told Fox Business last week that he’s not entirely convinced that a bottom has been reached yet.
“It’s possible, but I’m not confident. This is partly seasonal,” Shiller said regarding the recent rise in home prices that have been documented over the past few months.
Only one thing is certain when it comes to economics: there is no certainty as to when an economic cycle has bottomed out until it’s already past. This is especially true in real estate — one of the biggest driving forces behind our national economy.