Normal economic conditions are still at least a couple of years away even though the housing market is expected to see some improvement this year. The rise of home prices in recent months is due to a rising demand by investors, low interest rates, and a drop in the proportion of distressed sales. Any gain in prices is good news because the price gains reduce the number of homeowners with “underwater” mortgages. The current economic outlook, however, is for a modest recovery that lasts three to four years, not the sharp upswing that characterizes most housing recoveries.
The Wright Express Construction FCI for August 2012 is available at www.wrightexpress.com/fci.