I wanted to share this short video, in which Robert Shiller elaborates on his views on home prices and the fundamentals that may lead to overshooting. According to Shiller – who is among the 100 most influential economists of the world and eponym of the S&P Case-Shiller index – animal spirits is what substantially drives economies – and homes prices alike. Shiller, together with Nobel Prize winner George Akerlof, wrote a book on the subject (please read my earlier post) conveniently titled “Animal Spirits”.
Anyone who’s interested in experiencing the Case-Shiller inflation-adjusted US Home prices index somewhat differently, take a roller coaster ride here. If you want to try out the Canadian version of the ride, fasten your seatbelts here.