Consumer confidence surged to its highest level in over 4 years.
Looking at the latest numbers released by the Conference Board, the consumer confidence index rose to 73.7 in November from 73.1 in October. That's the best readings since February 2008.
Why is the consumer so buoyant when Washington grows ever closer to falling off the fiscal cliff. Read More: Sen. Reid Reports Little Progress in 'Fiscal Cliff' Talks
"There could be two reasons," said Jim Cramer on Tuesday's broadcast.
Reason 1. Homes prices are finally starting to increase and that matters much more to the nation's economic well being than anything Washington may say or do.
And there's no doubt that home prices are going up. The S&P/Case-Shiller index of property values in 20 cities climbed 3 percent from September 2011.
"When property values go up, consumers start to feel wealthier," said Cramer.
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That may be especially true among people who bought houses within the past few years. "Millions of households may be transitioning from being in the hole on their house to being in the black again."
Because buying a house is the largest purchase most Americans will ever make, it stands to reason an improvement in the housing market will not only boost sentiment, but also generate a positive ripple in the economy.