With the economic recovery sluggish at best, many ask what impact
this has on housing. Over the last several years, most economists
believed that housing would not recover until the overall economy
recovered. However, it now seems that the housing sector may be a
driving influence in the recovery.
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.
