http://qz.com/75930/yep-home-prices-have-bottomed-and-its-a-game-changer/
Yep, US home prices have bottomed, and it’s a game changer
By Matt Phillips @MatthewPhillips 15 minutes ago
Société Génerale analysts are mincing no words: The US housing market
has bounced off its bottom. And that’s something that will effect
everyone from well-heeled private equity investors to working schmoes
that can swing a hammer. They write:
Rising home prices imply that the deflationary dynamic that has
plagued the housing market and the broader economy is now over. Until
now, the rebuilding of tangible wealth has been accomplished largely
through the liability side of the household balance sheet, i.e. via
defaults and debt repayments. Not only is this type of deleveraging
painful; it also tends to reinforce the economic weakness. Going
forward, we believe that balance sheet repair will become a lot easier
as rising home prices lift asset values and wealth positions. This
trend has already begun, but will continue for some time.
For the record, we’ve been rocking on this hobby-horse for a while,
and you can check out some of our recent coverage here, here and here.
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