Housing Market Not out of the Woods Yet

While the housing market helped lift the U. S. economy out of past recessions in 1981, 1990 and 2001, according to fxempire.com, it is not happening this time. Historically, residential investment has averaged five percent of gross domestic product (GDP), but it has only returned to three percent since the housing bubble, and that missing two percent translates into a lost $336 billion. In addition, MHProNews.com has learned pending home sales rose only +0.1 percent month-over-month in January, well below the 2.9 percent anticipated by analysts, and nine percent lower than Jan. 2013. While some blame the harsh winter weather for low pending home sales, it is more likely the result of low supply, higher interest rates and rising home values.

(Image credit: Fotosearch.com–question mark houses)

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