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Rather, it adds to a supply overhang that depresses prices as the economy sags.
The answer is that, while the supply overhang may exert some short-term downward pressure, the long-term trend remains inexorably upwards.
"The enormous supply overhang of existing homes (particularly factoring in all those in foreclosure or soon to be) promises to keep pressure on prices for some time," Joshua Shapiro, chief United States economist at MFR Inc., wrote in an analysis of the Case-Shiller data.
"The enormous supply overhang of existing homes — particularly factoring in all those in foreclosure or soon to be — promises to keep pressure on prices for some time," said Joshua Shapiro, the chief United States economist of MFR Inc. Mitch Kaminer, the president-elect of the Atlanta Board of Realtors, said the November Case-Shiller numbers were ancient history.
Barclays Capital analyst Nicholas Snowdon expressed surprise at the metal's recent price gains given supply overhang and possible restarted production in China.
Analysts estimate that Micron is pumping out around 45 million 64 MB DRAM chips every month, creating a severe supply overhang in the market.
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It may be about to demonstrate that the supply overhangs intimidating precious metal markets can be exaggerated.
"We haven't seen such a large overhang of supply in some time," said Linda R. Killian, a principal at Renaissance.
"You still have a big overhang of supply out there," said Eric G. Takaha, director of corporate and high-yield debt at Franklin Templeton, the investment company.
Extensive bank lending and a 53 percent increase in two years in the broadly measured money supply has left an overhang of inflation and spiraling home prices that China is still trying to quell.
Consumption in the European Union will grow marginally if at all this year and will not be sufficient to clear an overhang of supplies, contracted through take-or-pay agreements signed in the dash for gas of the past decade.
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