Housing Prices - If It Looks Like a Bubble, It's Probably a Bubble

The chart of housing prices in the United States as measured by Robert Shiller, an economics professor at Yale University and the author of Irrational Exuberance Second Edition, shows that house prices have almost doubled as they have ascended in a nearly vertical rise since 1997. The last such increase occurred after World War II in the 1940s.

The homebuilding stocks are signaling the bubble is over and house prices are moving to the downside.

Posted March 10, 2006.