Nov 27 2012
Housing: The Little Engine that Could
Posted in News
No Comments
Posted on: November 27, 2012
By Frank Anton
A weak housing market often gets blamed for the Great Recession as well as the anemic economic recovery.
But, if the pattern portrayed in the accompanying chart holds, housing should, as it always has, come to the
economy’s rescue.
With NAHB’s Home Builder Sentiment Index at 47 (the highest level since 2006), it’s reasonable to assume
that housing’s contribution to GDP should move back to its traditional average of about 5%. That percentage
was as low as 2.5% in 2010, when the Index was at 8, an all-time low, and it was as high as 6.2% when the
Index peaked at about 75 in 2006.
Economists now see housing generating up to 20% of overall GDP growth in QIV 2012. GDP growth means jobs;
jobs mean a stronger housing market; and that means more jobs and so on and so on, which means the end of
the vicious economic cycle triggered by housing’s collapse and the real start of a robust recovery.
Featured Properties
1616 Circa Del Lago San Marcos CA 92078 $ 153,000.00
Completely turn-key, third floor, vaulted ceiling unit in a desirable, gated 55+ community. The kitchen is bright with updated light fixtures, a beautiful mosaic backsplash, granite countertops, new flooring, and new stainless steel appliances. The updated bathroom boasts a huge walk-in shower, two medicine cabinets, granite countertops, new flooring, and modernized light fixtures. Plantation shutters,…
2700 Golf Club Palm Springs CA 92264 $ 154,500.00
Don’t miss this cute and clean south Palm Springs condo! Great lower level location in Espirit with multiple pools, spas, tennis & pickleball courts. Low HOA dues and within walking distance to Starbucks, Trader Joe’s, Target and more make this a perfect investment or winter getaway for snowbirds. Comfortably furnished per inventory with washer &…
2857 Los Felices Palm Springs CA 92262 $ 154,900.00
One Bedroom Condo in Palm Springs Villas I. This 589 square foot condo features 1 bedroom and 1 bathroom. Newley interior paint and Newley modern tile floor Through out, New Recessed Light, New Ceiling Fans with Light, New Quartz Kitchen Counter top and Modern Back splash, New Appliances, Complete new Shower, Vanity, Mirror and Toilet,…
1506 Oak Vista CA 92084 $ 155,000.00
Beautiful laminate floors enhance the beauty of this bright and airy home on the quiet back street of one of the most sought after 55+ communities in San Diego’s North County. Great floor plan features a nice-sized kitchen, a bonus room in the center of the home, ceiling fans to keep you cool, skylights to…