If there was any talk about the housing recovery, two pieces of good news should end that conversation!  The Department of Commerce just reported that new home sales rose by 2.1%.  Not only were more homes being sold, but at prices 12.1% higher, according to the highly regarded Case-Shiller Index.

The good news in the housing recovery from The Great Recession is sweeping across the entire spectrum of real estate investing.  Every sector is doing well: private mortgage notes, turnkey properties, small apartment buildings, and flipping properties.

As reported by the Case-Shiller data, prices rose in the 20 cities across the United States that it covers.  Prices have been very strong in urban areas such as Chicago.  Investors from around the world are piling into the Chicago real estate market.  An article in The Wall Street Journal detailed that Mirae Asset Global Investments, a South Korean firm, just paid $218 million for an office tower on Wicker Drive in Chicago.  The Financial Times featured Chicago in an article, "The Rebirth of the American City" by Edward Luce, which was covered previously on this site.

There has been a trend of bullish news for the housing market.  Prices, sales, starts, permits, etc... are all soaring.  Real estate agents in Chicago and other areas are reporting multiple offers on properties when put up for sale.

Most important of all, Americans are more optimistic about the future.  Consumer confidence continues to climb.  As the US economy continues to recover from The Great Recession, more feel confident enough to buy a home again, rather than rent.  That is increasing demand for homes across the country.

Shaun Cohen, President of EquityBuild Finance, the funding arm of EquityBuild, a real estate investment firm, commented about this good news, "We just closed ten deals.  Of those, seven were repeat deals with members of the EquityBuild Family.  This is great news about housing and it confirms what the EquityBuild family has always known: for the passive investor with a long term outlook, real estate cannot be beaten as an asset class."

Agreeing with that was Jerry Cohen, President and Founder of EquityBuild.  A principal in more than 1000 real estate transactions since 1984, he added that, "Real estate creates more wealth than all of the other asset classes combined: it is not even close.  During The Great Recession, when stocks and bonds fell in price, the level of rents actually rose in the United States."

For those concerned that rising mortgage rates might derail the housing recovery, David Blitzer, Chairman of the S&P Index committee, sought to alleviate this fear by advising that all remember how, "Home buyers have survived rising mortgage rates in the past, often by shifting from fixed-rate to adjustable rate loans.  In the housing boom, bustand recovery, bank's credit quality standards were more important than the level of mortgage rates."