Shiller created the "Case-Shiller Index," which tracks changes in house prices on a monthly basis and is the most closely followed house-price index in the country.

We sat down with Professor Shiller in Davos to get his take on the future of the housing market.

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Henry Blodget: Everybody in the U.S. seems convinced that the housing market is going to come roaring back, it’s going to save the economy, house prices are going to rise, houses are a great investment again. Are they right?