America's Wealth Effect From Rising Home Prices Has Been Cut in Half

``... around the middle of 2005, households would spend an extra $3.40 in the event that their home gained in value by $100. Near the end of 2015, households would increase outlays by just $1.70 if real estate values rose by the same amount. "In other words, home prices in 2015 need to rise double as fast as in 2005 in order to generate the same impact on consumer spending," writes Torsten Slok, chief international economist at Deutsche Bank AG. "This weaker wealth effect is a key reason why the recovery since 2009 has been so weak."''