Home prices are rising and bolstering consumer confidence and financial health

The Carpe Diem blog reported home prices posted a 6.3% year-over-year gain in October, which was the largest annual increase in home prices nationwide in more than six years, since June 2006.  It also marked a period of eight consecutive monthly increases in home prices on a year-over-year basis starting in March.  The CEO of CoreLogic stated . . .“The housing recovery that started earlier in 2012 continues to gain momentum. The recovery is geographically broad-based with almost all markets experiencing some appreciation.” Rising home prices have a long way to go to be considered near a peak.  Rising home prices lead to rising consumer wealth and sentiment.  A strengthening home market is consistent with an expanding economy that can withstand the impact of a “fiscal cliff”.  This is particularly the case in light of continuing accommodative Fed monetary policy.  Jeb Terry, Sr. Dec. 9, 2012.

Chart courtesy of Mark Perry, Carpe Diem blog

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