By Matthew Kerkhoff
One area that has received little attention at DTL recently is housing. As an integral part of our economy and one of the main drivers of the financial crisis, I thought we would check in and see how this market is faring.
Let’s begin with a look at how overall U.S. home prices are trending, as measured by the S&P/Case-Shiller 20-City Composite Home Price Index. The chart below shows the year-over-year change in home prices, and as you can see, home prices across the nation are rising by about 5% per year. Real estate markets are local in nature, so specific areas may be well above or below this mark, but this provides a good aggregate benchmark.
So what does this mean?
For those fortunate enough to own one or multiple homes, the value of each home is currently increasing by about $5,000 per year for every $100,000 that the home is ... Log in or subscribe to continue reading.