The U.S. Housing Market: Metrics of Recovery & Links to Economic Growth
For roughly six years home prices have fallen steadily in markets around the country. However, in the past few months there has been speculation that there are signs of hope. There is evidence that local markets around the country are finally improving, but others still face further declines in home prices.
A broader housing recovery will require improved macroeconomic conditions. Nationally, unemployment is far too high and GDP growth is far too tenuous to sustain a full recovery in housing. Many states, and more importantly individual metro areas, have seen employment rise. Yet for some, like hard hit Nevada, the unemployment rate remains high. For individuals pursing homeownership, a secure job and growing wages are a necessity. Housing market stabilization and recovery, from this point forward, will vary greatly depending on locality. The outlook for the housing market on the national level remains uncertain without greater job and wage growth.
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