“Home values could surge 35% without stretching housing affordability.”

Household wealth in the U.S. has climbed in the fourth quarter to the highest level in five years. Good news is abounding. Household wealth is approaching pre-recession levels and that, in conjunction with the Federal Reserve pushing to keep lending rates low, consumer confidence is surging. “Growing wealth puts households in a better position,” said Paul Edelstein, director of financial economics at IHS Global Insight in Lexington, Massachusetts. “They’ve acquired a lot of financial assets, and that’s a positive for spending.”

The housing market is surely making its way to recovery. Single family home prices have risen in 88% of U.S. cities. Making claims that home values is predicted to surge seems to be substantiated based upon all the evidence. "During the peak of the housing run-up, affordability was stretched as the market sold off," Dosaj, vice president of the home price index at LPS Applied Analytics, said. "As home prices dropped, affordability dropped." (http://realtormag.realtor.org/daily-news/2013/03/01/economist-makes-bold-statement-home-prices?om_rid=AACuz5&om_mid=_BRMNeLB8xIsqgB&om_ntype=RMODaily)

 

 

 ATHOMEINBOZEMAN