• US house prices still look very high, according to Yale economist Robert Shiller.
  • "Maybe if you have a good chance to delay your purchase, it might be a good time to do so," he told CNBC.
  • Shiller added that he's expecting the US economy's struggles to continue for the next six months.

US house prices still look very high – so potential buyers should consider delaying their purchase for another six months with the economy's struggles likely to continue, according to Robert Shiller.

"It's easy to forecast the short-run in the housing market, if you're a long-term buyer it's not clear," the Yale economist told CNBC's "Closing Bell: Overtime" Monday. "Home prices are very, very high by historical standards." 

"I would extrapolate the downturn somewhat – it's going to continue," he added. "Maybe if you have a good chance to delay your purchase, it might be a good time to do it."

"It might get a little cheaper after another six months."

The S&P CoreLogic Case-Shiller Index, which is based on Shiller's own analysis of US housing with fellow economist Karl Case, shows that home prices fell six months in a row between July and the last available reading from December.

Rising interest rates have helped fuel the housing slowdown. The Federal Reserve has lifted borrowing costs from near-zero to around 5% over the past year – and that's pushed national average 30-year mortgage rates to just below 7%, according to Bankrate data.

But Shiller believes that there's at least six months of declines left to come, based on his view that key policymakers will eventually accept a recession that helps to drag down prices.

When there's an economic downturn, unemployment is likely to go up – and that reduces the number of Americans who can afford houses and stops landlords from raising rents.

"That's the capitalist system with a central bank," Shiller told CNBC. "I think it works pretty well most of the time and I wouldn't tinker too much with it."

"We have smart people on the Fed and the Treasury Secretary I admire, Janet Yellen," he added. "They may have to accept something of a recession."

The latest edition of the Case-Shiller Index, set to be released at 9am Eastern Time Tuesday, will show the extent to which US house prices rose or fell in January 2023.

Read more: Jeremy Grantham warns the 'everything bubble' is bursting, the S&P 500 could nosedive 50%, and a recession looks certain. Here are the elite investor's 12 best quotes from a new interview.

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