A few short years ago, housing was considered a headwind to economic recovery.
Today, housing is seen as a tailwind to a stalling economy.
For the first time since 2005, housing is on track for contributing positively to national GDP in 2012.
That can occur either by way of direct residential investment or through remodeling and other ancillary services. Watch for signs of sustained tailwinds in a variety of indicators, including market times, seller concessions, prices and absorption rates.
For July, the New York State Association of REALTORS (NYSAR) has reported that new listings were down 11.3 percent to 17,931. Pending Sales increased 17.7percent to 9,796. Inventory shrank 22.3 percent to 95,303 units.
Prices firmed up as the Median Sales Price was up 5.9 percent to $233,000.
Days on Market increased 2.8 percent to 112 days. Months Supply of Inventory was down 31.0 percent to 11.6 months, indicating an improved supply-demand balance.
Sustained recovery will not occur without real employment and wage growth. Consumers must be confident in both the economy and their family finances before signing on the dotted line.
Cheap borrowing costs have served as the glue binding things together. Unimaginable a few years ago, the rate on a 30-year fixed mortgage recently ducked below the 3.49 percent marker. Job creation and GDP numbers will garner particular attention this quarter.
