Case-Shiller released their index of home prices in 20 cities and it rose 0.6 percent in February over last year. Existing home prices advanced 0.4%, as sales climbed for the first time in four months.

We’ve turned a corner with housing,” said economist Karl Case, who with Robert Shiller created the index. “As long as mortgage rates don’t jump and employment continues to improve, we should see housing play a key role in preventing a double-dip recession. Via Seeking Alpha

Monetary Policy; The Fed kept monetary placed a hold stating that conditions requiring low rates were likely to remain for an extended period.

Inflation: The economy is in a sweet spot with solid growth and inflation is low. Why the Fed is keeping rates low, to put behind us several quarters of growth and stimulate job growth and consumer confidence.

Counter Trends

Jobs: The economy will still have to expand at a decent rate for several more quarters before we get decent job growth

Defaults: 13.6 million homeowners have no equity or negative equity and therefore have little incentive to continue to pay high monthly mortgage debt.

Steep Losses: It will take quite a while to dig out. Note: The chart above compares this very steep decline with the last bust in the 1990’s. See chart courtesy of papereconomy.com

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