The economy has slowly healed but has had trouble gaining the traction needed for a robust recovery. I've always believed that a real recovery could not happen until the real estate market did its own healing. Recent data shows positive signs for the housing market, leading the way to the recovery we have all been waiting to arrive.
The release of new data by CoreLogic, shows home prices in the US have risen at their fastest pace for more than six years. According to the data, home prices jumped by an impressive 8.3%, giving investor confidence a much-needed lift. Meanwhile European confidence also helped to boost US markets, with manufacturing and service businesses their rising to a ten-month high in January.
Given that the US economy surprisingly contracted last year, many analysts are looking to a burgeoning real estate recover to drag the US back onto the right track.
The most obvious benefit from a sustained housing recovery would be the creation of new jobs in the construction industry, reports the NPR. 28,000 new jobs were added in last January alone, while 296,000 jobs have been created in the industry since January 2011. Should the housing market ever be able to return to a ‘normal’ state, experts predict that it could generate some 2.9 million jobs throughout the country, the effects of which would reverberate throughout the greater economy.