For the first time in six years, the residential market is expected to add to U.S. economic growth in 2012. New home sales are up 28% from a year ago and new construction is running 35% higher.
The long-awaited recovery in the devastated real-estate market was a long time coming, but it finally looks like it’s here to stay. Barring another recession, most economists expect sales and construction to continue to rise steadily over the next few years.
And that’s good for the U.S. given the widespread — though diminished — impact that the industry has on the broader economy.
The government this week will release the latest monthly report on new home sales as well as growth figures for the third quarter. Both are expected to show improvement, with housing contributing significantly to gross domestic product. (continue reading)