Inventories of previously owned homes at an 11-year low and Ben Bernanke is printing money. You don't need much else to push prices higher.
Thursday, December 27, 2012
Home Prices On Track for First Yearly Gain Since 2006
The latest confirmation came yeterday, when the Standard & Poor's/Case-Shiller 20-city index showed that prices rose by 4.3% from a year ago in October. Since January, prices are up 6.9% so far this year, the largest year-to-date gain since 2005.
Inventories of previously owned homes at an 11-year low and Ben Bernanke is printing money. You don't need much else to push prices higher.
Inventories of previously owned homes at an 11-year low and Ben Bernanke is printing money. You don't need much else to push prices higher.
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Why can't our "leaders" have as good an understanding of economics as you, Bob? It's very depressing.
ReplyDeleteI continue to disagree with your housing thesis. Prices have stabilized, but nothing more. Recent stats give an incorrect impression, because they are based on median prices. With fewer foreclosures and short-sales, but sales of a few million & multi-million dollar homes, & the median prices goes up.
ReplyDeleteBut track the same house, or similar houses, & you will see a different picture.
Too many are aware of the end-game with a bubble, whether it be housing, or stocks, to have it repeated so soon. The recent uptick in long-term bond rates, which may continue, is likely to put a damper on the even modest housing price rally.
Add real estate taxes, maintenance, and realtor buy/sell commission, & it is unlikely a purchase 6 months ago would show much of a profit.
A weaker world economy, as the continued retirement of baby boomers, & the case for housing -- and stocks -- is somewhat bearish.
Recent declines in copper, silver, gold, also does not support the inflation-housing arguement.