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U.S. home prices increase by biggest margin in seven years

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  • Brave Sir Robin San Diego, CA
    June 4, 2013 5:13 p.m.

    No Chris, it's not a simple concept. If your home appreciates in value by $50k, then the next home you buy is also $50k more expensive than it used to be. So unless you're planning on living in a tent or you're a house flipper, home values are a zero-sum game.

  • Chris B Salt Lake City, UT
    June 4, 2013 2:41 p.m.

    Robin,

    Your home is an asset and yes it will mean you'll have more money, assuming you do sell it and buy a new one. Regardless of what the price of my next home is, if my current home is worth $50k more now than it was 7 years ago, I'll be $50k richer whenever I sell the home, assuming prices stay.

    Yes I have to buy a new one. But assuming prices hadn't increased, I'd bet $50k poorer when I bought that new house and sold the old one.

    Simple concept really.

  • Brave Sir Robin San Diego, CA
    June 4, 2013 9:43 a.m.

    Why do people look at their home as an asset? I thought a home was a place to live? In other words, if you were to liquidate your home (i.e. sell it), where would you live? The only solution is to buy or rent another home - hence, a home cannot be truly considered an asset because you can't live without one.

    Home values are a red herring. Just because you house is increasing in "value" doesn't mean you suddenly have more money.

  • Irony Guy Bountiful, Utah
    June 4, 2013 9:23 a.m.

    It's Obama's fault.

  • JoeBlow Far East USA, SC
    June 4, 2013 7:16 a.m.

    People complain about the state of the economy.

    However, when you compare the stock market( read 401k) the housing market, and unemployment
    to the second half of 2009, I have a hard time believing that the wealthy have not fared extremely well on the last 4-5 years.

    How bout looking at the good for a change.

  • luv2organize Gainesville, VA
    June 4, 2013 6:50 a.m.

    With the increase I am finally able to refinance because my home has over 20% equity. Rates are still at an all time low so don't miss out!