Political Economy
Housing Market Picks Up Steam

This may mean more for Trump’s political future than all the drama in DC. From the WSJ:

U.S. home prices rose in January at their fastest rate since mid-2014, a trend that bodes well for sellers but could start to eat into demand as buyers get priced out of the market.

The S&P CoreLogic Case-Shiller Indices, which cover the entire nation, rose 5.9% in the 12 months ended in January, the strongest increase in 31 months, up from a 5.7% year-over-year increase in December. […]

The accelerating gains are being driven by job growth, a large demographic of people entering their 30s and looking to buy homes, and limited supply of homes on the market.

Add home prices to the list of economic indicators—including consumer confidence, employment, and the stock market—that have improved significantly in the months since the election.

It’s been said that presidents get more credit than they deserve when the economy performs well and more blame than they deserve when it performs poorly. The truth is that Trump inherited an economy that was gathering momentum on its own. But if that momentum persists, he may once again prove harder to stop than his opponents imagine.

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