Any recovery in U.S. housing market bodes well for vast swaths of the economy
(Source: Globe and Mail)
The U.S. housing market is showing signs of stabilizing, which is critical for vast swaths of the economy, ranging from home builders to retailers to banks loaded up with mortgages.
Still, the underlying problems remain – the continuing decline in house prices and high level of mortgage defaults. On a year-over-year basis, home prices are down about 18 per cent, according to the latest S&P/CaseShiller survey.
What are the expectations?
The house price index scheduled for release today is forecast to have fallen 0.2 per cent in May, compared with a 0.1-per-cent drop in April, according to a survey of economists by Bloomberg.
Read Allan Robinson’s full article “Signs show U.S. housing is starting to stabilize” in the Globe and Mail (July 22, 2009).