Shiller: Housing Prices Are Boring Now

The transcript discusses the housing market's trends, including price changes since the financial crisis, regional market differences, and the impact of inflation. It highlights the shift towards renting due to low confidence in home values and examines the potential effects of interest rate changes on the economy. The discussion also covers future housing price trends and their implications for economic growth.

What was the trend in housing prices around 2012?

• They fluctuated unpredictably.

• They increased rapidly.

• They decreased significantly.

• They remained stable.

Why might people prefer renting over buying homes currently?

• High confidence in housing market value.

• Expectations of significant price increases.

• Ease of renting and low profit expectations from homeownership.

• Government incentives for renters.

What is the expected impact of higher interest rates on the economy?

• It will definitely boost the housing market.

• It will make borrowing more difficult and create investment competition.

• It will lead to a decrease in construction activity.

• It will have no effect on the stock market.

How might breaking the pattern of low interest rates affect the markets?

• It will stabilize the stock market.

• It might lead to a correction in stock or housing markets.

• It will have no impact on housing prices.

• It will cause a decrease in economic growth.

What role do rising home prices play in the economy?

• They discourage construction activity.

• They lead to a decrease in consumer spending.

• They are irrelevant to economic growth.

• They encourage construction activity and strengthen the economy.