Robert Shiller, Yale professor, author and co-creator of the S&P Case-Shiller Index, has several concerns about the condition of the national real estate markets. Mainly, the size of the shadow inventory of homes that have been taken back by banks through foreclosure but have not yet been marketed to prevent a flood of inventory driving market prices lower. As a result of this action, the Case-Shiller Index has reported home prices increasing for seven months in a row through December. In addition to this so-called shadow inventory, "I think people will become less resistant to defaulting on their mortgage," Shiller says.
To see a five minute video interview, from Yahoo Finance, click on "read more".