Economic activity slowed in the
first half of 2012, but housing is one bright spot, according to Fannie
Mae’s August 2012 Economic Outlook.
Home sales are projected to be 9 percent above year ago levels, and
home prices are expected to continue to rise, according to Fannie Mae
economists. A shrinking inventory of for-sale homes on the market has
also led to a gradual pickup in homebuilding in many housing markets
across the market.
What’s more, residential investment is projected to contribute about
0.2 percentage points to the real gross domestic product this year --
which could mark its first annual contribution since 2005, Fannie
researchers note.
Source: Fannie Mae and “Housing Recovery Brightens Fannie Mae Economic Outlook,” HousingWire (Aug. 21, 2012)