Home Values Continue to Rise

The Federal Reserve said Thursday, the value of Americans’ real estate holdings jumped approximately $400 billion dollars to $19.1 trillion or 2.1%, in the second quarter to the highest level since the 4th quarter of 2008. This increase is a of the similar rise in the 1st quarter of this year. This news follows the rise in home prices and new construction activity which T&C BLOGGED about yesterday. CoreLogic Inc said home prices rose 6.9% in the 2nd quarter from the 1st quarter. Consumer confidence is a critical factor to this recovery, as consumer spending fuels 2/3rd of the US economic activity. With household debt down and real estate values rising, we are poised for a steady recovery.