According to this mini article by CNN, prices in several major housing markets have seemingly recovered.
Home prices are hitting new highs in these reported cities: Dallas, Houston, Denver, Pittsburgh, San Antonio, San Jose, California and Austin, Texas. While home values nationwide are still down 13.5% from their pre-housing bust peaks, according to the article, there are significant progresses made in the aforementioned cities.
The article is divided into 7 slides, each compares home value now and during the housing boom peak. The slides also mention shortly about the major driving factors of house cost in each individual city.
For example:
In Austin, Texas, the home value now is at $221,300 while at the boom peak it was at $192,600.
The biggest driver is said to be Tech jobs, which explain the high-paying median salary which attributes to rising house price.
Is this a positive sign of the recovery of the economy?
Feel free to leave your comments below and check out the short and sweet article at House Price Rising
I think this is a great sign of economic recovery. There is more consumer confidence in the economy which is causing consumers to want to purchase homes as a store of their wealth. I think as the economy continues to recover, the demand for housing will rise.
ReplyDeleteagreed.
DeleteDefinitely a good sign for the economy. Not so good for the relatively lower income folks in those areas who are being priced out of the market.
ReplyDeletehttp://www.businessinsider.com/new-housing-alone-wont-fix-san-francisco-real-estate-2014-4
This absolutely shows positive upward movement of the economy. Housing prices are an obvious indicator of economic strength, and these numbers are very hopeful. I'm interested how these prices can be spread to more cities around the country though.
ReplyDeleteI do too.
DeleteTech intensive industries have been emerging in growing cities in the past few years so this shows great potential for the nations upcoming economic growth; this is definitely positive for the growth of the US economy. Biomedical research company's have been upcoming around cities such as Pittsburgh and Cleveland, among others.
ReplyDeleteI think that deregulatory expansionary policies are to be seen in the near future by banks (we have already seen some of this). I believe that this is 'ok' as long as we keep in mind the lessons of our past... Im looking at you 07'-08'.
ReplyDelete