option chains Advertisement Fidelity
Home > Boards > Free Zone > User's Groups > HOUSING MARKET AND THE REAL ESTATE BUBBLE (HOUSE)

Housing Prices: Is There a Threat to Economic Recovery?

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
nlightn Member Profile
 
Followed By 82
Posts 21,044
Boards Moderated 16
Alias Born 01/05/04
160x600 placeholder
U.S. Stocks End Choppy Session Higher
The U.S. stock market finished Thursday's volatile session generally higher as positive earnings and stronger-than-expected data outweighed worries over military escalation near Ukrainian border.
Top Equities Stories Of The Day
Tech Companies Agree To Settle Wage Suit
AstraZeneca, Smith & Nephew Push FTSE To 7-week High
GM Profit Falls on Recalls, but Beats Expectations -- 2ed Update
Time Warner Cable Profit Jumps on Higher Subscriptions
Correction to AT&T Earnings Story
GE Is in Talks to Buy Alstom's Energy Business - 2nd Update
Microsoft Posts Smaller-Than-Expected Profit Decline -- Update
Zimmer-Biomet: The Deal That Shook Warsaw, Ind. -- 6th Update
nlightn   Sunday, 01/02/11 08:01:57 AM
Re: None
Post # of 1222 
Housing Prices: Is There a Threat to Economic Recovery?
Mark Perry
January 02, 2011



In a post yesterday, I discussed Alan Reynolds' recent editorial in the IBD titled "Do Falling Home Prices Imperil Recovery?, where he points out that house price declines in a "few troubled cities in a few states [based on the Case-Shiller 20-city composite house price index] do not represent the entire nation." This was in response to a a recent front-page Wall Street Journal article ("Housing Recovery Stalls") that fretted about how "A new bout of declining home prices (based on the October decline in the Case-Shiller house price index) is threatening to hamper the U.S. recovery, just as consumers and the overall economy have been showing signs of healing."

Like the chart in the previous post, the chart above provides further evidence of the significant disconnect between the Case-Shiller Home Price Index (10-city composite above for Boston, Chicago, Denver, Las Vegas, LA, Miami, NYC, San Diego, San Francisco, and Washington D.C.) and the FHFA U.S. House Price Index. As Alan Reynolds pointed out, the FHFA U.S. House Price Index based on 50 states increased by 1.07% in the third quarter of this year vs. the previous quarter, the largest quarterly gain since the 1.30% increase in the fourth quarter of 2006. Based on the FHFA House Price Index, there's no threat to the U.S. economic recovery.

http://seekingalpha.com/article/244368-housing-prices-is-there-a-threat-to-economic-recovery

invest at your own risk, based on your own due diligence, at your own risk tolerance

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist