Housing Recovery Is Fueling Improvement In Related Businesses, Indicating Expansion Of Recovery Into Other Sectors

Monday, January 28, 2013 08:30
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Housing Recovery Is Fueling Improvement In Related Businesses, Indicating Expansion Of Recovery Into Other Sectors

Tags: economic indicators | Economic Outlook | economy

The recovery in the housing markets is beginning to spill over into other areas, particularly in earnings for companies that produce power tools, air conditioners, carpet fibers, furniture, and cement mixers.
 
Almost anything having to do with home building is benefiting from the housing market’s rebound.

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Although the recovery is slow, it is steady and the various indicators show that a bottom may finally have been reached, giving executives confidence that the sector will continue to improve and spur economic growth.
 
Existing home sales soared in 2012 to their best levels in five years, basically since the crisis began.
 
The jump was the largest single increase since 2004, well before the 2008 crisis.
 
New home construction rose 12% in December of 2012 and the year ended up seeing the largest number of new homes constructed since 2008.
 
Although sales of new homes took a 7.3% dip in December, yearly new-home sales finished the year up 20%.
 
Last year was the poorest year for new home sales since 1963. Putting those figures into context within the recovering housing market shows the progress made since the crisis.
 
Businesses that were hit hard by the crisis are emerging with renewed growth that is spilling over into transportation and other sectors.
 
Rail freight operators are benefiting from the transport of supplies and the movement of furniture.
 
The broader economy remains fragile but continuing improvement in housing will result in continuing improvement across different economic sectors.

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