Housing analysts this week called into question economist Robert Shiller’s recent comments that the housing market was starting to look “a little bubbly.”
Shiller, who co-developed the S&P/Case-Shiller Composite 10 Home Price Index, has said he’s concerned some markets across the country may be over-correcting and starting to resemble a housing bubble.
However, a group of housing experts disagreed during the ABS East 2013 conference in Miami. Price appreciation is slowing, said Mark Fleming, CoreLogic’s chief economist. Fleming said that the rapid growth in appreciation in previous months was a correction after an overshoot in prices falling during the housing crisis.
“We are certainly not in a housing bubble,” added Laurie Goodman, who heads the Urban Institute.
Even if interest rates continue to move higher, the housing market would still be OK, according to Goodman and Fleming. Goodman said that even with a 6 percent interest rate, affordability would remain at 2000-2003 levels.