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WASHINGTON — U.S. home prices jumped 12.2 percent in May compared with a year ago, the biggest annual gain since March 2006. The increase shows the housing recovery is strengthening.
The Standard & Poor's/Case-Shiller 20-city home price index released Tuesday also surged 2.4 percent in May from April. The month-over-month gain nearly matched the 2.6 percent increase in April from March — the highest on record.
[h=1]US home prices rise 12.2 percent, best in 6 years[/h]
Good news!
OK, time for the Democrats to tout Obama's economic policies for the recovery, and for Republicans to say it isn't good enough and has nothing to do with Obama anyway.
Commence.
If you give credit to President Obama for the artificially low interest rates and the foreclosure market winding down, then Obama's your guy. 'Course if you believe that a 12.5% jump in real estate values is the beginning of yet another bubble? Be my guest.
If you give credit to President Obama for the artificially low interest rates and the foreclosure market winding down, then Obama's your guy. 'Course if you believe that a 12.5% jump in real estate values is the beginning of yet another bubble? Be my guest.
Artificially low as opposed to the "natural" interest rate? What's that? Some ideal number floating inside von Mises' head?
[h=1]US home prices rise 12.2 percent, best in 6 years[/h]
Good news!
OK, time for the Democrats to tout Obama's economic policies for the recovery, and for Republicans to say it isn't good enough and has nothing to do with Obama anyway.
Commence.
You think we're looking at free-market interest rates? We're not. They're being kept artificially low as the government helps the banks, presumably, get well.
You use the term "free market" interest rates as if that's meaningful. I'd love to have you define it without reference to monetary supply.
This ought to be fun.
You think we're looking at free-market interest rates? We're not. They're being kept artificially low as the government helps the banks, presumably, get well.
Passive savers are not in any way entitled to "money for free", and we should be thankful that we get any rate of return for the money that we save.
[h=1]US home prices rise 12.2 percent, best in 6 years[/h]
Good news!
OK, time for the Democrats to tout Obama's economic policies for the recovery, and for Republicans to say it isn't good enough and has nothing to do with Obama anyway.
Commence.
When a bank takes my money and loans it to people to buy homes at anywhere from 4 to 9%, I'm entitled to a return on that money.
fWhen a bank takes my money and invests in the stock market, derivatives, whatever? I'm entitled to a return on that money.
If I gave you my car and let you use it for three years, I'd expect you to pay me for its use. Same thing.
Why? See, you just proved my point about entitlement. People think that they should get something, even if they are not being productive. The only thing you are entitled to is whatever deal you work out with your bank. If thats the service of them holding your money, in exchange for their right to temporarily lending it to someone else at a profit, so that they can cover their operating cost and possibly make a buck or two for the non-passive investors, then so be it.
You are only entitled to the best deal that you can negotiate.
Sure, and if I told you that I couldn't pay you any money for the use of your car, and you still agreed to lend it to me, then you shouldn't expect me to pay you, you should only expect whatever we mutually agreed upon. No one is forcing you to lend me your car, or for you to put your money into a bank account. You would only do those things because you chose to.
I don't disagree with anything you've said here.
Lets keep it that way, and we can be best buddies for life!
Much of the jump in housing prices has come from investors who are buying houses as quickly as possible while they are still below their intrinsic value. These investors have cash and that, more than interest rates or anything else, have driven this rise.
So inflation apparently hasn't harmed them to much.
Does this mean a house in Saginaw is worth more than a 2005 F150?
If the house wasn't worth anything before, then 0 + 12.2% is still zero.
Generally, if you avoid the weirdness of failed conservative economic policies (like austerity) an economy of our size and diversity is going to recover from a recession. It will do it sooner if you use lots of stimulus, but even the minor stimulus Obama was able to pass over the squawking crows of the Republicans in Congress was good enough from moderate growth and the slow recovery of the housing market.
This makes no sense.. 3 facts.
Obama's stimulus was passed and spent in a Democratic House and Senate.
Obama stimulus ended 2 years ago.
We are 8 months into austerity and the sky isn't falling.
[h=1]US home prices rise 12.2 percent, best in 6 years[/h]
Good news!
OK, time for the Democrats to tout Obama's economic policies for the recovery, and for Republicans to say it isn't good enough and has nothing to do with Obama anyway.
Commence.
A 3.7 teradollar budget is austerity?
I wonder what profligate spending would look like?
I think you should send a big shout-out to all those Canadians investing cash in the southern US states buying up cheap real-estate. With the average price of a detached home in Toronto averaging just under $600,000, a lot of boomers with the kids gone are selling, buying a condo, and using the balance to purchase vacation and winter properties down south.
You're welcome.
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