Home markets are rebounding. That is the message that is being proclaimed all over the US. But as a cautionary note, there is still a long way to go. Freddie Mac’s 2012 Economic Outlook reports “The housing market is showing some signs of shaking off the depression-like conditions that have plagued it for much of the past few years. As if awakening from hibernation, housing starts and home sales moved to higher levels of activity.”
A primary factors helping the housing market get back on track is the drop in unemployment. Half of the recent increase is directly due to rising construction rates building rentals and multi-unit buildings.
Source: “Freddie Mac: Economic Growth Expected to Stabilize Housing Market,” Dow Jones Newswires (March 28, 2012)