How Housing Is Leading Us Out of the Great Recession by THE KCM CREW on APRIL 30, 2013 · 0 COMMENTS We are often asked if the housing market can truly rebound if the all-round economy remains sluggish. We answer by explaining the housing market is not dependent on the economy but rather the economy is reliant on the housing market. Mark Zandi, Chief Economist at Moodys.com , addressed this issue in a recent report . “Historically, housing has always led the U.S. out of recessions. It is the most interest rate-sensitive part of the economy, and as rates fall during recessions, housing rises first .” How does real estate impact the economy? Real estate impacts the economy in several ways. As Zandi explains: “Housing’s resurrection is crucial to the creation of more jobs. Every new single-family home creates and sustains almost five jobs for about a year. These include not only construction jobs, but manufacturing positions for producing lumber, paint, nails,
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