There was a survey among economists about the economic growth
this year and the housing market was one of the main growth drivers. Compared
to previous years, the supply isn’t in excess as before. After five years
buyers are brought back to the market. As the demand for housing increases,
more construction and manufacturing jobs will be created. Also, because the
supply is tight, this should lead to increased home values and have a huge
impact on the consumption in general. However, even though the housing market
is supposed to recover, the economic growth is predicted to increase only of
2.4% in 2013, and the biggest concern is a standoff on Capitol Hill.
1 comment:
In the CNN article, it states that record low mortgage rates are available for homeowners. This is been the case since many firms were bailed out, however, they were VERY strict on what consumers met the very strict criteria to receive a mortgage. I understand that more and more consumers are meeting the guidelines and banks are less strict on who can get a new mortgage. My question is whether or not the economist surveyed have taken into account the difficulty - that is if my assumption holds true - of consumers getting a mortgage. Despite my question, this is very good news for the US economy.
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