A report today at The Financial Times puts some perspective on where things are at in the U.S. housing recovery. While noting the significant role of financial investors in driving house price gains to date, the authors declare prices “are at something like fair value” now.
Among other market watchers quoted in the piece, Robert Shiller is consulted. When Shiller speaks, people listen – thanks in large part to his warnings of the U.S. housing market bubble long before it burst. Shiller continues to bring an intriguing air of caution to excited media circles surrounding recovery expectations. “There’s no good way to define fair value for houses” says Shiller, while adding: “With prices about right relative to history, there is no reason to expect big moves up and down over the next decade or two.”
The article, linked below as a PDF file, features several success stories in midst of the market crash; one Florida homebuilder, on the brink of bankruptcy, adapted to change with dramatic results.
“The Greens bought a foreclosed house for about $31,000. They renovated it, rented it out – and discovered a successful new business model. Today they own 76 homes, most of them painted with a signature blue front door.”