http://money.cnn.com/2013/01/27/news/economy/housing-economic-growth/index.html?iid=SF_E_Highlight
According to the article, over half of the economists surveyed by CNNMoney identified a housing recovery as the primary driver of economic growth this year.
Home sales rebounded to the strongest level in five years in 2012, as home building bounced back to levels not seen since early in the recession. Near record low mortgage rates, rising home prices and a drop in foreclosures have combined to bring buyers back to the market. Moody's Analytics is forecasting a 50% rise in home building both this year and next year, which it estimates will create more than 1 million new jobs!
Joseph LaVorgna, chief U.S. economist of Deutsche Bank said: "One of the most significant indirect effects from the housing recovery is the 'wealth effect' on consumers due to the recovery in home prices,". According to him, better home values can affect both consumer psychology on spending as well as their actual finances.
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