Don’t look now but there is serious wealth growth going on as residential real estate improves and stock prices rise.

The prices for homes all across America are on the rise. They are still below their peaks but being up 24% from the housing bust lows feels good. Houses are still very affordable. There remains ample upside. In addition, the bull market in stocks has helped drive household net worth back to the record high level seen in 2007 when debt inflated home prices were creating illusory net worth. Today’s net worth has been accomplished with a reduction in household debt. The appreciation in real estate in a rational fashion and the appreciation in stocks can contribute to a sustained “wealth effect” for the economy. Jeb B Terry, Sr. June 15, 2014

Housing price gains from low 6-13-14

Housing price charts selected cities 6-13-14

Housing affordability chart 6-13-14

Household NW as pct of GDP 6-13-14

Aberdeen Investment Management – a guide service for micro-cap technology investment

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