Why do most describe rising house prices as “Appreciation”?

[Daren H.]

Why aren’t rising house prices described as Inflation? Inflation is generally looked at as a bad thing. Appreciation of home prices is viewed as a good thing. If I am a homebuyer buying today as opposed to 8 years ago, I have seen massive price inflation. If I bought 8 years ago and selling today, I have seen massive price appreciation. Even if I sold my house purchased 8 years ago and captured the appreciation, I will have to pay a lot more to buy a similar house in my area today which goes back to inflation in my view. Most homeowners and buyers will still describe rising home prices simply as appreciation. When oil and gas prices rise, I never hear people running around talking about the appreciating oil and gas prices.

Is the difference in the use of the terms simply wordplay pressed upon us by the USG and Financial Services industry to help promote buying houses? I guess my mind wonders about silly stuff at times :)

[Account Closed]

Appreciation is generally applied to assets and inflation to commodities. So homes and stocks appreciate. Milk and gas inflate. But either way it just means it costs more today than before.