Housing Builds on Recovery; Prices up 4.3% YoY

[Jordan]

The S&P/Case-Shiller index of property values in 20 cities increased 4.3 percent from October 2011, the biggest 12-month advance since May 2010, the group said today in New York.

The price increase accelerated from a 3 percent advance in the 12 months ended September. The Case-Shiller index is based on a three-month average, which means the October data were influenced by transactions in August and September.

Residential homebuilding has contributed 0.3 percentage point to gross domestic product on average in the first three quarters of 2012, according to Commerce Department data. The last time it added to growth for an entire year was in 2005, when it boosted the economy by 0.36 point.

http://www.bloomberg.com/news/2012-1...-rebounds.html

Housing is back.

[Seraphim]

I would not say housing is back - it will most likely muddle along mostly flat for a few years.

I do however think that US housing in a lot of areas has bottomed and there is little downside left.

This is nominally speaking - The Bernank is actively debasing the dollar and housing is a real asset that cannot just be created out of thin air.

http://www.bloomberg.com/news/2012-1...-rebounds.html

Housing is back.

[Acala]

The nominal price of housing will increase at some point. Unlikely that the exchange value of housing in terms of other goods will ever revisit its peak.

[Jordan]

The nominal price of housing will increase at some point. Unlikely that the exchange value of housing in terms of other goods will ever revisit its peak.

I totally agree, mostly because there is enough supply out there. I don't think housing is going back to its peak, but it is undervalued.

[malkusm]

Housing markets are vastly different and the degree of competition between markets is not enough to make such a homogeneous index accurate, IMO. I think there are certain characteristics which have caused certain markets to fall much more than others....namely, anywhere that people would buy second homes: beach properties, warm climates, waterfront areas that aren't more than a couple hours from metropolitan areas.

Places like New York and San Francisco, I'm not sure there's really been a huge crunch...a dip, sure, but those markets could rebound well above their previous highs. Places like my hometown, which doubled in housing units from 2000 to 2008 and still has about 40-50% of those new units for sale.....those types of markets will be hurting for another decade, at least.

[Zippyjuan]

"Back" as in back to where it was during the bubble- heck no. But it has definately been rising off the bottom and a wise investor will want to get in if they can while they are more affordable.

[John F Kennedy III]

http://www.bloomberg.com/news/2012-1...-rebounds.html

Housing is back.

[Brian4Liberty]

Are we there yet?

http://www.ronpaulforums.com/showthr...m-is-emerging/

[BucksforPaul]

Housing is not back and the current gain is as artificial as the housing bubble 7 years ago. It's true that current prices are not the same as 2005 but government backed low interest rate loans are still there to entice investors into buying secondary investment properties. Also, it would be wise not to ignore the millions of foreclosed and currently bank owned vacant houses that are part of the shadow inventory. These banksters will hold on to these in order to get more free money during the next bailout.

[NoOneButPaul]

hahahahahahaha

Alright... keep thinking that... I work in real estate as a legal clerk and 80% of sales are from the HUD! YES THE FUCKING HUD! The HUD is the ONLY Thing keeping housing afloat (at least here in Chicago). Without it prices would die another 30-40%

Keep thinking what you want to think but I know the reality... property is nowhere near a bottom... what we're seeing now is the sheep lining back up in confidence like some kind of recovery is around the corner.

Little do they know the second they start thinking this the money velocity, which is at all time lows, would skyrocket and we would get hit with the massive inflation of the last 5 years.

Nothing has bottomed, nothing is real... everything is being propped up by an illusionary mirage of 85billion a month being printed by the fed... in 12 months that's another trillion and a 25% increase in base money supply...

Yes... things are all better... go back to sleep!