Shiller Raises Possibility of “Trump Boom” in Housing

One of the most prominent housing economists has inched his way out on the proverbial limb to raise the possibility of a stronger housing market under President-Elect Donald Trump.

In an interview with Bloomberg Television, Yale professor and Nobel laureate Robert Shiller speculated that the new administration could coincide with a renewed enthusiasm in housing.

“I think we’re at a turning point,” Shiller said. “The numbers that we’re reporting today are October, before the Trump election, and everything looks different now. There might be a Trump boom coming.”

However, Shiller would not commit to a full-throttle prediction of better days for housing once the Obama administration is gone.

“I’m not forecasting a boom,” Shiller continued. “I find it very hard to forecast at this point in our history because it’s such an important change in government and we just don’t know where it’s going. I want to see Trump’s actual policies and see how successful he is in getting them through.”

Shiller added that he was uncertain how a new environment with higher rates would impact the market.

“I don’t know how people react to rising mortgage rates,” Shiller said. “One thought is they want to lock it in now. And that’s why we’ve had good home sales recently. And it might continue as mortgage rates rise. This thing could feed a boom. I’m not saying it will.”