Home Prices See Highest Gains Since February 2006

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Nov. 26 (Bloomberg) -- Bloomberg LP senior economist Joe Brusuelas breaks down the 13.3 percent gain in home prices in the S&P/Case-Shiller index, what it means for the U.S. economy and what it will take to sustain the gains. He speaks on Bloomberg Television’s “In The Loop.”

We are looking at september data.

What we're seeing is a reflection of the good strong data from 2012-2013. we have seen the celebration.

Or just slower growth in some cases.

Many investors are concerned about a bubble.

If you are going to have a bubble, it will be in the west.

We are seeing signs in some cases of real rapid price gains low wing.

That is a good sign.

I think the most important thing is in order to support prices at these levels, we will need to see increased household formation come increase in jobs and wages and salaries.

If you are an investor looking at this, i would think it is ok.

Pretty good news for the economy.

Housing seems more or less it is back.

Especially the residential investment portion.

We still have problems with mortgages underwater.

That will take a number of years to work itself out.

All in all it looks good.

I like the data reports this morning.

I do think if we can see job gains accelerate next year, you will see a better housing market.

One thing grates are going higher, in the larger context they are historically low.

I have heard this site it from other economists.

This will put a crimp in housing recovery.

When we had the 100 50 basis points in the long-term yield between may and september, it did take it out of interest and autos.

Housing did suffer a bit of a hit.

Without job gains in gains in incomes and salaries, you will see the same thing.

That is why i think that that is likely to be on hold until early next year to give the policymakers time to assess if the job gains we have seen over the past three months continue to accelerate so they feel comfortable moving towards a treasury only monetary policy, which would take a number of years.

[indiscernible] great.

Thank you.

From housing to autos, tesla facing battles across the country.

The decision to sell 70,000 cars to consumers directly, basically cutting out automakers has some fighting back.

Our d.c. correspondent is with us with more.

In some states it is really not easy at all to buy a template.

Pre-k they have showrooms in 19 states, but in some states like texas you cannot buy a car of the show room and cannot even give you pricing information because of state laws.

Potential buyers need to have it shipped in an unmarked car instead.

At least eight states have considered some kind of bill to limit tesla.

Colorado, virginia, new york, minnesota.

Tesla banking on the model of

This text has been automatically generated. It may not be 100% accurate.

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