Building on housing's 'wealth effect'

For the first time since the recession, there is potential for rising property values to boost consumer spending and give the United States' economy a nudge.

Housing's so-called wealth effect has been a drag on household purchases since 2008. A projected 2 per cent gain in home values next year will start to lift consumer spending in the second half of next year, according to Michelle Meyer, a senior economist at Bank of America in New York.

via Business feed http://www.scmp.com/business/economy/article/1040943/building-housings-wealth-effect