Housing Recovery Means Economic Recovery: Opinions on the housing recovery are diverse, however, everyone seems to agree that the housing sector plays an important role in propelling economic recoveries. The pending possibility of a fiscal cliff is highlight as a possibility that could reverse current positive housing progress.
RE/MAX Results real estate specialist and Certified Distressed Property Expert, Jenna Thuening, tracks national housing recovery signals. Jenna feels that the economy continues to show slow, steady, and welcomed progress. The housing sector remains center stage in economic recovery, with many leaders recognizing that the increase in residential construction and home sales activity is important to the sustained and strong recovery of our nation.
Economic Recovery Is Slower Than The Housing Recovery
The economy continues to show slow, steady, and welcomed progress. The housing sector remains center stage in economic recovery, with many leaders recognizing that the increase in residential construction and home sales activity is important to the sustained and strong recovery of our nation. The depressed housing market carries a heavy weight dragging on the the economic recovery, with great need to find buyers for distressed properties weighing in on the market.
Federal Reserve Vice Chair Janet Yellen
Fed Vice Chair Janet Yellen, speaking in Boston on June 6th, speaking in Boston on June 6th, noted that Chip Case was one of the first economist to document worrisome signs of the housing bubble and anticipated the toll that it's unwinding would have on the economy. The decreased sales house price index that bears Chip's name is one of the most closely watched of all economic indicators. Believes that a highly accommodative monetary policy will be needed for quite some time for the economy to mend.
Speaking in Boston on June 6th, "the economy appears to be expanding at a moderate pace." She considers the balance of risks to be tilted toward a weaker economy". Smoothing through these fluctuations and other indicators, as well as appear to be consistent with an economy expanding at only a moderate rate close to it's potential. The housing sector remains a source of very significant headwinds. Housing has typically been a driver of economic recoveries and we have seen modest improvement recently, but the continued uncertainties over the direction of house prices and very restricted mortgage credibility for all but the most credit worthy buyers, will likely weigh on housing demand for some time to come."
National Association Of Home Builders
Coinciding with the National Homeownership Month, a well coordinated voice from 700 home builders was heard on Capitol Hill on June 6, asking Congress to make housing and homeownership a national priority. Hopes to keep the housing recovery moving forward are strong amidst the realities of economic challenges and global uncertainties. “Though we are seeing some hopeful signs of recovery in many markets throughout the nation, our industry still faces stiff headwinds. Persistently tight lending standards for home builders and home buyers, uncertainty regarding the future of the housing finance system, ongoing threats to vital housing tax incentives, and overly burdensome regulations are hampering a housing recovery and keeping countless home building firms from constructing viable projects and hiring new workers ” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla.
Federal Reserve Chairman Ben Bernanke
Chairman Ben S. Bernanke, before the Joint Economic Committee on June 7th, 2012 reinstated the Federal Reserve's preparedness to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate.
His direct manner was clear that the housing market's impact on our economic recovery is significant. Attempts to buy depressed housing have fallen short for many as they cannot obtain a home loan. "Despite historically low mortgage rates and high levels of affordability, many prospective homebuyers cannot obtain mortgages, as lending standards have tightened and the creditworthiness of many potential borrowers has been impaired. At the same time, a large stock of vacant houses continues to limit incentives for the construction of new homes, and a substantial backlog of foreclosures will likely add further to the supply of vacant homes. However, a few encouraging signs in housing have appeared recently, including some pickup in sales and construction, improvements in homebuilder sentiment, and the apparent housing market stabilization of home prices in some areas."
Agreement That Housing Sector Plays A Lead Role In Housing Recovery
While many have a different take on what pace to expect in the recovery progress, everyone seems to agree that the housing sector plays an important role in propelling economic recoveries. Governor Elizabeth Duke's January 6th observation that “typically, the housing sector plays an important role in propelling economic recoveries" was well said. Housing affects everyone, beginning with the family, and including banking, the construction business, our lending institutions,household's ability to borrow, consumer spending,the jobs of countless citizens and more. This look allowed us to walk through the assumptions as she has arrived at them, presenting an emphatic case for sticking to the central bank's low interest-rate policies.
If you or someone you know is facing foreclosure and staring at the impact of being in the Minnesota foreclosure timeline, and don't know where to go, contact Jenna Thuening of Home Destination today. I care and want to help. Call 612-396-7832.
Jenna Thuening, a Certified Distressed Property Expert is helping minimize foreclosures impact on homelessness.
Eden Prairie MN 55334
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