(Reuters) - The Housing market is likely to remain weak and may take a generation or more to rebound, Yale economics professor Robert Shiller told Reuters Insider on Tuesday.
Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, said a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.
"I worry that we might not see a really major turnaround in our lifetimes," Shiller said.
I think the scenario Professor Shiller worries about is highly unlikely. We still have some years in which to work out our oversupply of housing but supply and demand will eventually hit equilibrium, and then increases in housing value should match inflation,