The New York Times
Housing Offers Hope of Strength in the Economy
A funny thing is happening to the United States housing market. It is getting better at an accelerating rate.
And therein could lie hope for a surprisingly strong economy this year.
It has been a long time, as the economy worked off the excesses of the boom and cleared out the inventory of homes that should never have been built or were “sold” to people who could not hope to afford the payments. But now the inventory of houses for sale — both new and used — is as low as it has been in decades. Home prices are rising in most markets. Sales have picked up, though they are still low by historical standards.
“We had 48 months of depression in the housing industry,” said Karl E. Case, an emeritus professor of economics at Wellesley College and the co-developer of the Standard & Poor’s/Case-Shiller house price index. “Housing has brought us out of every recession in the past, and it was not available.”...Read More>>>