Schwab’s Sonders: Housing Strength Bodes Well for Economy

Thursday, 15 Nov 2012 08:36 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The gradual rebound in the housing market is setting the foundation for a broader economic recovery, says Liz Ann Sonders, chief investment strategist at Charles Schwab.

Housing starts soared 15 percent in September from August to the highest level in four years. And in August, the S&P/Case-Shiller index of home prices in 20 cities rose 2 percent from a year earlier, the biggest gain since July 2010.

"Just about every metric in housing is starting to turn here," Sonders said at an investment conference, according to CNBC.

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

"People are still underestimating the impact that this is going to have. What people are underestimating is the ripple effect of confidence."

Sonders notes that the housing market has been able to withstand the European debt crisis and the impending fiscal cliff. Still, the government needs to avoid the cliff to keep the positive momentum in housing and the economy as a whole, she says.

Other experts are bullish on housing too.

“It’s no longer a question of whether the industry is rebounding,” Larry Sorsby, chief financial officer of homebuilder Hovnanian Enterprises, tells Bloomberg. There is clear evidence that we have bounced off the bottom and are in the midst of a recovery.”

Russell Price, senior economist at Ameriprise Financial, agrees. "The improvements we've seen are very sustainable and very solid," he tells Reuters. "They're on very firm footing in the housing market."

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved