Housing Recovery

U.S Housingg shows recovery signs, after it left a lot of homeowners with properties that were worth less than their mortgages.
The S&P/Case-Shiller index said yesterday that the home prices in 20 cities rose a 0.6%. And last week The National Association of Realtors reported that the existing home process advanced a 0.4% this march for the first time in four months.
“Prices could go further, but as long as mortgagee rates don’t jump and employment continues to improve, we should see housing play a key role in preventing a double dip recession” said economist Karl Case, he, with Robert Shiller created the S&P/Case-Shiller index. He also added “We’ve turned a corner with housing, though it is hard to see any robustness”.
One of the things that are supporting the housing demand is an abundance of inexpensive homes and a stabilizing job market, according to chief U.S economist for Barclays in New York Dean Maki.
Barclays Maki said: We’ll see a surge as buyers rush to close before the deadline, follow by a subsequent falloff… After that dip, we expect home sales to increase for the rest of the year.” And according Neal Soss, chief economist at Credit Suisse Holdings in USA in NY, employment is the key to this situation, to housing outlook, and the road to recovery “You’ve really got to heal the fundamentals, such as the employment situation, rather than just address the symptoms with a program like tax credit, we see housing as a lagging sector for some years into the future.”
Although, the recovery can be different for residential construction, According to Donald Kohn in a speech on April 8 said: “I do not expect that the recovery in housing construction will boost growth substantially this year, in a contrast to its usual pattern early in economic recoveries, a large overhang of vacant homes is likely to weigh on new construction for some time”.
As Case said, “there is a light at the end if this real state tunnel, but there are long of things, like inventory, in the way”