When the numbers are in, 2000 will go down as one of those rare years in which Americans count their houses, not stocks, as their best-performing assets.

According to mortgage giant Freddie Mac, home values across the USA grew about 7% this year over last. The National Association of Realtors pegs the growth at a more modest 4.4%.

Both measures trounce the Standard & Poor's 500-stock index, which appears ready to finish in negative territory this year for the first time since 1990. Even slow-but-steady money market mutual funds-which have earned about 5.5%-will be hard-pressed to match the performance of the average house.

"It's going to be an unbelievable year," says David Lereah, chief economist for the National Association of Realtors, although the number of homes sold is slightly below 1999's record.

Homes beat stocks in value The average value of a home increased more this year than many investments.
Home	7%
1-year CD	4.97%
Money Market Fund	5.5%
Dow Jones Industrials	-6.9%
Nasdaq composite	-39.6%
Source:CSI, Freddie Mac, USA TODAY research

Stoking demand, Lereah says: high employment, modest mortgage rate and, until lately, a strong stock market.

During the past five years, home values soared 29%, according to Freddie Mac.

Ron McElhaney Jr. of Savannah, Ga. says the strong market prompted him to put his house on the market and look for a bigger one. He estimates it will bring $240,000, about $90,000 more than he paid in 1996.

Last week, average interest rates on 30-year mortgages fell to 7.17%, the lowest since May 1999.

NAR expects rates to remain below 8% for at least two years-which bodes well for strong home prices, Lereah says.

But a steep economic decline- the dreaded "hard landing"-could dry up housing demand and lead to a price slump, he says.