Housing Now Driving Recovery?

Housing Market a Complicated Mix

A long-term solution is needed and that means having a stable monetary policy with a tax policy that makes sense so business owners can make plans. While the Federal Government can make-believe with such insane tools like a “continuing resolution”, small business owners don’t have such a luxury. The current state of political affairs provides proof that central planning is a failure. Business must sit side by side with governance without holding hands.

Here are four reports released in the last 30 days affirming this point:

Morgan Stanley

“In terms of its contribution to real GDP, residential fixed investment has been a positive – albeit modest – force over the most recent four quarters, marking its longest span of back-to-back positive results since 2005.”

Deutsche Bank

“The [overall] resumption in residential activity cannot be understated as the long-awaited housing recovery should help buoy consumer confidence and provide a mild lift to second half economic output after what was likely a disappointing first half of the year.”

Fannie Mae

“The data from the past month collectively point to decelerating economic growth, but growth nonetheless…However, despite signs of deteriorating momentum for economic activity, housing continues to be a bright spot as news from the housing market has been relatively upbeat, presenting a rare upside boost to the economy.”

Goldman Sachs

“As we look back at previous major housing recoveries, 1975 and 1991 began with negative jobs growth…In each case, the home sales recovery was fueled by home price improvement, driving new job growth and those jobs creating a fresh wave of demand that supported a multi-year recovery in housing.”

Is housing a victim to the current economic malaise? No. It may even be the cure.

Attention Subscribers:

We will be going over each of these reports in detail in August posts. We will supply you with graphs, charts and links to the reports. The information will help you understand to a greater depth how the uncertainty in the economy may or may not impact the housing market.

About FineHomesDigest

The Fine Homes Team, Mark Finchem, Associate Broker with Long Realty Company, provides service to buyers, seller and builders where fine homes are concerned. With extensive experience in residential real estate transactions we can help you with the home you'd rather have.
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