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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