(See recent posts on Phoenix Case-Shiller Home Price Index.)
I know people suspect real estate analysis from a Realtor but now even the hero of the housing bust, Dr. Robert Shiller of Case-Shiller Home Price Index fame, sometimes uses the word “overcorrection.”
Phoenix Home Prices and Overcorrection
In passing, during this long video with economic stars Robert Shiller and Nouriel Roubini, Dr. Shiller mentioned a possible overcorrection of housing prices in some places and threw out the name of one city, Phoenix.
U.S. Home Prices “about in the normal range”
Dr. Shiller said about the U.S. home market in this interview, “Right now home prices are, in terms of price to rent or price to construction cost, they are about in the normal range.”
On the other hand, he also said the home market may be in the “doldrums for years.”