Home prices increased during the second quarter of 2009, offering additional signs of hope that the worst may be behind us. This represents the first increase in three years. A thawing of the frozen housing market would be a positive sign. For the average American, a home is the largest and most significant investment. As values drop, we feel less wealthy. This is known as the wealth effect. When we see the value of our assets decline, we tend to spend less.
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