U.S. home prices registered their first monthly gain in almost three years, it was reported this week, providing new and strong evidence our current recession has bottomed.
The stock market's been running since March (chart shows S&P) but now Standard & Poor's Case-Shiller index, which measures home prices in 20 metropolitan areas, rose 0.5% for the three-month period ending in May, as compared with the three months ending in April. It marked the index's first increase after 34 straight months of decline.
The Wall Street Journal said economists who discussed the survey focused on the April-to-May rise, saying it represents a significant change in direction. Home prices in 15 of the 20 areas in the survey rose or remained stable.
It's only housing prices, you say? What about the Gross National Product and, more importantly, unemployment? That's next gang. The economy needed to put a floor under these falling home prices and declining real estate assets, or economic activity would never pick up.
Think this is just my opinion? Think I'm guessing? Check out the chart. Look where the big money's been moving since March: The Standard % Poor's 500 index. America's biggest companies.
Thanks to ETrade and the Wall Street Journal