Housing: Still sluggish
What it is Home values affect all property owners, so the change in prices of homes sold by homeowners is one of the more informative readings on the health of the housing market.
Why it's important: Home prices serve as a key measure of consumers' wealth and the financial sector's overall stability. When home prices rise, consumers have more funds to borrow and spend. Rising prices also mean the value of financial institutions' large real estate portfolios increase, which, in theory, gives banks more of a cushion to lend.
Where we're headed: Home prices began to stabilize as sales rose on the back of the Recovery Act's homebuyer tax credit. But sales and prices have since fallen back. Home foreclosures, which have totaled 8.4 million during the recession, are still trending higher.
NEXT: Inflation: Uncomfortably low
Last updated November 23 2010: 10:39 AM ET
