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Shiller: ‘Not Ready Yet’ to Call Housing Bottom

Tuesday, 18 Sep 2012 | 1:02 PM ET

It would take at least a year of price increases to call a recovery in the housing market, Yale University economist and housing expert Robert Shiller said Tuesday on CNBC.

(Read More: REIT Outlook Strong for 2013, Kimco CEO Says)

“There are a lot of positive indicators, but I think people tend to overreact to these. And if you look at the trend, which has been down since 2006, it’s a pretty strong trend that we have to see reversed. I might call it later this year, that we’ve reached the bottom, but I’m not ready yet,” he said on “Fast Money.”

Shiller: 'Not Ready Yet' to Call Housing Bottom
Yale University economist and housing expert Robert Shiller says it's still too soon to say housing prices have bottomed.

(Read More: Shiller Backs Off ‘Late Great Depression’ Remark)

“The question is will this continue through the fall and the winter. We’ll wait and see,” he said. “I believe in momentum in the housing market. It looks like upward momentum, but I think it’s too soon to call.”

Shiller noted that improvement in the market has been seasonal so far and said that “at least a solid year of price increases,” as well as other factors, would be needed to call the bottom.

(Read More: Home Prices Hit Lows, but ‘We See Signs of Hope’)

“It’s starting to look better, I have to admit,” he said. “For someone who wants to buy a home now, you also have to factor in that mortgage rates are at record lows, so I’m not telling people not to buy a house.”

Trader disclosure: On Sept. 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long FB; Mike Murphy is long FDX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in GOOG; Jon Najarian is long call spreads in BRCM; Jon Najarian is long call spreads in PHM; Jon Najarian is long call spreads in DHI; Jon Najarian is long call spreads in LEN; Jon Najarian is long call spreads in FFIV; Jon Najarian is long call spreads in MPEL; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLUU; Jon Najarian is long STSI.

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