Based on the latest numbers being reported the U.S. economy grew at 5.7% in the fourth quarter of 2009, the fastest rate in the last six years as businesses stepped up spending. The year in total contracted at a 2.4% rate, the largest decline since 1946. So not all good news.
In addition consumer spending increased at a 2% annual rate in the fourth quarter and business investment grew at a 2.9% rate the first increase since the second quarter of 2008.
Home construction spending was at an annual rate of 5.7% in the fourth quarter ( a coincidence that it is the same figure as the GDP growth).
Lately the housing market indicators have been mostly positive. Newton and its surrounding towns and cities usually buck national trends but at this moment the trends are mostly positive across the nation with regard to the economy. With regard to which direction the prices will go will still depend partly on the tax credits, job creation and other factors such as the strength/ weakness of the dollar but I forcast a Spring market in newton which will see inventories being stable and prices being stable as well. In other words: a strong Spring Market this year.
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