Although it is apparent that the real estate market is on the rebound, Robert Shiller, professor at Yale and co-creator of the Standard & Poor's/Case-Shiller home price indices, said that the recovery isn't "resounding."
"There are positive signs, the problem is that it's not a really strong positive sign yet," Shiller said in an interview on Bloomberg Television's "In the Loop." "It is not a resounding recovery."
Shiller added that the country needs to get back a private-sector mortgage market without dominance from the government in order to spur the recovery. Additionally, he believes that the country needs to find a system that doesn't "invite" a crisis where there are 10 million homeowners underwater on their mortgages.
Underwater mortgages have been a major problem since the housing crisis. Many of those people have been forced into foreclosure, while others have had difficulty selling their homes because of a loss of equity. With recent rises in home prices, this situation has improved, but there is still a long way to go before there is a full recovery.