Housing Market: Lifting the Economy
Now that the election is decided, attention is turning from who our next leader will be to what this election means to the economy. Lately, the housing market is the one good thing the economy has going for it. “Higher sales, prices, and building, albeit modest so far, are a welcome boost as other drivers of the economy falter,” Reuters reports.
Some economists predict residential investment has the ability to add 2/10-3/10 of a percent to the GDP next year. Beyond the sales transactions adding to economic development, housing-related jobs are on the rise as well (increasing on average of 11,000 each month this year). This number is estimated to elevate to 30,000/month helping to reach the total goal of 150,000 new job devlopement needed in order to keep unemployment rates steady.
“Housing may also help lift consumer spending, another important factor that needs to increase to give the economy a jolt. Real estate wealth can help, economists say. As more home owners refinance into record low mortgage rates, more households may in turn then have more to spend.”
Source: “Housing Market Rebound Fails to Recharge Economy,” Reuters (Nov. 5, 2012)