Strong growth in consumer spending is moving the economy beyond the recovery phase into a period of expansion, according to the 2011 Economic Outlook leading the way for economic expansion.
For 2011, economic growth is expected to accelerate to 3.7%, up from 2.8% in 2010. Housing has continued to lag behind the rest of the economy. However, on the up side, the excess supply of housing seems to have peaked. The rental vacancy rate also fell, showing the excess supply of housing is being worked off slowly. This is a necessary trend for housing to return to stability.
The downward trend in homeownership and rental vacancy rate are consistent. This shows a rising share of households who have chosen renting over owning. The economy is stronger, with a sustainable growth pattern. With a lack of job growth issues and geo-political uncertainty in the Middle East, there is a present risk. But for now, it’s looking like the positives outweigh the negatives.
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