Industry NewsOpinion

Real estate’s February report card

Perspective: 'Soft landing' for housing underway
Published on Feb 14, 2006

Today's strong economy is fueled by growth in many sectors. While manufacturing and information jobs have declined in the last three years, the other sectors have added 4.4 million jobs. The housing industry has been contributing more than its fair share to the growth. Over the last three years, construction jobs have accounted for 13 percent of the growth, with financial services jobs adding another 7 percent. They comprise 5 percent and 6 percent of total U.S. jobs, respectively. The resale market has been cooling for some time, but the levels of unsold inventory remain below historical averages. The "soft landing" that most economists are predicting seems to be unfolding, although we know the market is strong in many areas and quite weak in others. Our grading system of the economy and the housing market is a "bell curve" model, with statistics at an all-time high receiving an "A," statistics near the long-term average receiving a "C," and the worst times ever receiving an "F." I...

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