Watching ABC World News. The big story tonight: "surging" home prices!
So is it time to sell your house!!??! Diane asks her colleague, beaming.
The colleague speaks with authority. If your house has regained its value, then yes. Time to sell.
The increase year-over-year is 5.5%. Given that house prices dropped at least 27% from peak (was it closer to 33%?) and then flatlined for 6 years, a 5.5% gain cannot properly be called a "surge," and it doesn't put anybody back where they were. (With the possible exceptions of Denver, Dallas, Charlotte, and maybe Cleveland, if I'm reading the chart right.)
If you're Diane Sawyer and you're determined to call a 5.5% gain after 6 years a "surge," then you need to include the 6-year figure for context, along with the 27% figure. Also for context.
Why is this not happening?
Why am I hearing "surging home prices"?
Can our national news programs not hire someone who can read a graph?
Meanwhile Debbie S tells me everyone says "housing is back" except two people: me, and her realtor.
I remember Diane, a couple of years ago, joyously announcing jobs were back. That wasn't true, either.
Housing’s Rise and Fall in 20 Cities Last updated 9/25/2012
Case-Shiller: House Prices increased 5.5% year-over-year in November
December Employment Report: 155,000 Jobs, 7.8% Unemployment Rate