Charles Schwab Chief Investment Strategist Liz Ann Sonders — whose calls on both housing and the economy have been quite accurate over the long term — says housing should continue to give the economy a boost in 2013. “In an economy that continues to grow at a pace below trend, the lift from housing will become very important,” Sonders — who warned of a housing downturn in 2006 when few were thinking of it, and then said housing had bottomed a year ago when few believed it — says in commentary on Schwab’s site. She points to an array of […]
Yale Economist and housing guru Robert Shiller says he thinks housing prices will continue to rise for a few months, but he’s not sure the upswing will continue after that — and he doesn’t think another housing boom is coming any time soon. “A lot of people seem to think that if the market turns around, that means more of the same, meaning another big boom,” Shiller tells CNBC. “I don’t think that’s in the cards. We might see home prices go up a little bit, you know, a little bit above inflation, maybe. Not likely that we’ll see a […]
Yale housing guru Robert Shiller says he’s still not convinced the housing recovery is real. Shiller tells CNBC that some 10 million homeowners are still underwater on their mortgages, and many will end up in foreclosure. Those foreclosures will add inventory to the housing market, he says, and economic risks at home and abroad are also a concern. “I still think it’s a risky market,” he says. Shiller also says that the potential elimination or reduction of the mortgage deduction as part of fiscal cliff negotiations could lead to a big shift from buying homes to renting homes.
Charles Schwab’s Liz Ann Sonders says that a rebounding housing market will have more of an impact than many believe it will have on the economy. “People are still underestimating the impact that this is going to have,” Sonders said at the Schwab Impact 2012 conference, CNBC reports. “What people are underestimating is the ripple effect of confidence.” Sonders says that “just about every metric in housing is starting to turn here,” pointing to builder confidence, home prices, and household formation, among others. “We’re finally having a surge in household formation. We have the right kind of supply and demand […]
Warren Buffett’s firm is continuing to bet on a recovery in the U.S. housing market, with one of its subsidiaries taking the lead in managing a new residential real estate affiliate network. HomeServices of America Inc., a subsidiary of Berkshire’s MidAmerican Energy Holdings Company, will be the majority owner of the affiliate network, teaming with Brookfield Asset Management to offer a new franchise brand, Berkshire Hathaway Home Services, Bloomberg News reports. The move is the latest in a series of housing-related moves Berkshire has made, according to Bloomberg, which notes that Buffett’s firm has bought a brickmaker, won the loan […]