American economic recoveries can be seen from two places: the first is that the housing sector traditionally leads the economy out of recession. The second is that there is no chance of the housing sector leading the present economy anywhere, except deeper into the mire. The housing market still looks grim, but the rental side hints at recovery. Rising house values boost confidence and spending, and home construction is more labor-intensive than other sectors. A housing recovery should also give monetary policy more traction; low interest rates do less to perk up the economy when housing markets are depressed.

AnonymousNovember 6, 2011 at 10:14 AM
I think its a balancing act from reading this article since the two places for recoveries contradict itself.
ReplyDelete
Replies
AnonymousNovember 6, 2011 at 11:15 AM
I think the housing market will pick up. First, the rise in the number of renters and the fall in vacancies is a good sign, not to mention that those things will drive up rent. The increase in the cost of renting will push more people to buy. It also seems like the majority of Americans dream of owning their own home and I think after a certain amount of time people won't let a depressed housing market stop them from buying.
ReplyDelete
Replies