Shiller: No homebuyer excitement

Shiller: No homebuyer excitement

Shiller says that we cannot trust momentum in the housing market anymore and this is because of volatility and lack of participation of first time buyers. Cramer says sales stopped in October.

Unusual demand from investors is the market and that is unsustainable. The market has been driven by psychology. But there is no excitement like in the early 2000's regarding the housing bubble.

Shiller says that the big guys like Blackstone will exit if momentum slows in the housing market. The rental market is coming back, but these investors may not say they are going to dump houses but he believes they will dump the houses. We will see.

I have said that cash buyers make volatility much more likely. Shiller is basically saying the same thing. But will the private equity guys exit the housing market. Will easy money have to come back into the system for the middle class or marginal buyers so there will be a place they can unload the houses onto? That is the real question. 

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