The latest price data on the housing market show that it's slowing down, says Nobel laureate economist Robert Shiller of Yale University.
The S&P/Case-Shiller index of home prices for 20 cities rose 4.9 percent in the 12 months through September, the smallest gain since October 2012. Prices climbed 0.3 percent seasonally-adjusted in September from August.
"I think it's a slow season, and we haven't expected exciting growth for a while,"
Shiller told CNBC. But he's still "somewhat optimistic" about coming months.
The futures market predicts about a 10 percent increase in home prices over the next two years, he said. "That's 5 percent a year. That sounds possible, reasonable. It's not an exciting investment, except maybe in these times, some might find that exciting."
Others have an upbeat view on the housing market too.
"You’re getting to a market that’s a little bit healthier, it isn’t subject to these boom-bust cycles,"
Thomas Simons, an economist at Jefferies, told Bloomberg. "I view the market as generally being in the process of stabilizing. When prices are stable, the market functions a little better."
As for the stock market, "I think that it is reasonable to have exposure, not excessive exposure, because it does look pricey now,"
Shiller said. "You've got to put your money somewhere. I'm still in the market."
But keep in mind that reversals are "a definite risk when prices are high like this," he said.
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