Almost 2 months ago we wrote:
"Chip Case and Robert Shiller are known for the gauge of home prices that bears their name, but as that indicator continues to draw cheers for a U.S. housing recovery the pair warn that things are not quite as rosy as they appear.
The latest S&P/Case-Shiller reading showed that the 20-city average of prices was up 9.3% in February from the prior year, driving talk that the housing market is ready to be a driving force for the American economy once again.
Not necessarily so, warns Shiller, who says that while housing is normalizing, the uptrend in prices is not particularly big on a historical basis and underlying indicators of economic health are not overwhelming."
Now two months later almost all signs point to a continuing increase in real estate prices and shortage of inventory. Some are even talking about new real estate bubbles that may be forming in some markets.
And yet Shiller continues to look at "the glass as half empty". Shiller does a great job with their Shiller-Case index, which is HISTORICAL data.
We think they should stick to history and stop trying to predict the future.