ROBERT SHILLER: 'I'm Still In The Market'

In an appearance on CNBC following the release of the latest S&P/Case-Shiller home price index, Shiller discussed not only the latest housing report, but his views on the stock market.

"I'm still in the market," Shiller told CNBC. "I think it's still reasonable to have exposure to the stock market. Not excessive exposure because it does look kind of pricey, but you've got to put your money somewhere."

Over the weekend, Business Insider's Henry Blodget wrote about the Shiller CAPE ratio, a stock market valuation measure, noting that though the measure is historically high and doesn't portend good returns from stocks going forward, there isn't a lot else to do with your money right now. (Note: Blodget also said he wasn't selling stocks.)

In his comments on CNBC on Tuesday, Shiller echoed a similar sentiment, and added that while he's in the market, he isn't owning stocks "enthusiastically."

On the housing market, the Case-Shiller report showed that month-on-month, home prices rose in September for the first time since April, with year-over-year prices rising 4.9%.

Shiller said that housing, "isn't an exciting investment" as home prices are rising, but not at the rate previously seen, though in this environment with rates low and returns hard to come by, housing looks more attractive.

Shiller noted that the futures market is expecting a 10% increase in home prices over the next two years, and an increase of 5%/year looks reasonable to Shiller.

And while expectations for home price increases are well below the 12% they were ahead of the housing crisis, Shiller said that expectations are starting to come up a little.