Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
NEW YORK (CNNMoney) -- In another sign of a housing market rebound, home prices posted the biggest percentage gain in more than two years in the third quarter, according to the closely followed S&P/Case-Shiller index.
Quote:
This latest rise comes as the housing market has shown numerous other signs of recovery in recent months. The rebound is spurred by a combination of record low mortgage rates, an improving jobs market and a drop in foreclosures to a five-year low, reducing the supply of distressed homes available.
The solution to real estate speculation is real estate speculation. Yeah, I don't know why I have a problem with that.
I know you don't like how US housing is set up, but housing can increase in value.
We only have so much housing in the US. The population is growing. As those Americans become financially able to leave their childhood home this does create demand for more housing.
So while I don't necessarily support US housing policy, I see increased home prices as a national increase in the demand, which means more Americans think they are financially able to afford a home, which means they are getting jobs.
I know you don't like how US housing is set up, but housing can increase in value.
It increases in value from wages or credit, meaning its not industrial capital. The house is not going to pay for itself like so much as a nut cracking machine that's for sure. The reason why housing leads recoveries is because its rising equity means it can absorb more debt which is spend in the general economy. For a time it can persist in a fragile equilibrium until it crumbles again.
Quote:
We only have so much housing in the US. The population is growing. As those Americans become financially able to leave their childhood home this does create demand for more housing.
So? Cheap housing means more to spend on everything else. Do you think high rents help US workers compete?
Quote:
So while I don't necessarily support US housing policy, I see increased home prices as a national increase in the demand, which means more Americans think they are financially able to afford a home, which means they are getting jobs.
This is a net positive.
Yes its a lagging indicator, and as I have said it will likely be that we will have very short economic cycles because the new home equity will dry up quickly since there is very little.
What ever the future is, its also about interest rates that cannot go up and razor thin equity trickling bank credit into the economy. If we end up with an economic shock I have to wonder what the plan is?
The thought of President Mitt Romney taking credit for the recovery in the next 4 years would have been too painful to bear...which is why I'm glad the Flip-Flopper got his butt kicked back to Utah!
The thought of President Mitt Romney taking credit for the recovery in the next 4 years would have been too painful to bear...which is why I'm glad the Flip-Flopper got his butt kicked back to Utah!
How warped can one's viewpoint be? it is unfathomable someone actuallys processes information and comes to a conclusion like this post
It increases in value from wages or credit, meaning its not industrial capital. The reason why housing leads recoveries is because its rising equity means it can absorb more debt which is spend in the general economy. For a time it can persist in a fragile equilibrium until it crumbles again.
So? Cheap housing means more to spend on everything else. Do you think high rents help US workers compete?
Yes its a lagging indicator and as I have said it will likely be that we will have very short economic cycles because the new home equity will dry up quickly since their is very little.
What ever the future is, its also about interest rates that cannot go up and razor thin equity trickling bank credit into the economy. If we end up with an economic shock I have to wonder what the plan is?
Everything in economics crumbles.
No, I don't want home prices to be high.
There is a limited amount of housing stock. We have a growing population as those people come of age and do better financially and get jobs those people's desire to own a home can drive up home prices.
So to me an increase of home prices represents workers doing better financially.
You seem to know a lot about the economy. So why do you think that home equity will dry up quickly?
Granted, I am not an economist and have a very simplistic understanding of the economy, but there are economic indicators that point to a positive economic future.
The thought of President Mitt Romney taking credit for the recovery in the next 4 years would have been too painful to bear...which is why I'm glad the Flip-Flopper got his butt kicked back to Utah!
I agree, conservatives would have lied and said the thoroughly discredited supply side economics saved the economy. Thank goodness they can't claim it. Although, I am sure they will invent another lie why President Obama's economic policies failed.
I didn't realize trading low housing prices for an over-leveraged federal reserve holding an excessively risky amount of mortgage debt was recovery.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
