you can't count on this prediction. It's possible that the US economy could have another recession -- or, more likely, continue its current stagnation for several more years -- which would hit the housing sector hard.
On Thu, Apr 18, 2013 at 9:54 AM, c b <[email protected]> wrote: > 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. > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
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