Deutsche Bank chief economist sees reason to be optimistic about the housing market

Miami /
Oct.October 15, 2012 03:00 PM

The housing market is marching toward recovery and with it the rest of the economy, a note released today by Joseph LaVorgna, Deutsche Bank’s chief U.S. economist, said. Business Insider reported on the note, which said that the “residential housing market is in the very early stages of a durable recovery” and that since it was housing that pulled the U.S. into a recession, it will be housing’s recovery that pulls it out.

In LaVorgna’s note, titled “The Housing Recovery Is For Real,” he argues that the evidence for recovery is in the year-over-year growth rate in residential investment. — compared to growth over the same period in non-residential aggregated demand, which he defines as GDP minus inventories and residential investment. LaVorgna’s calculation show that there is a four-quarter lead in residential investment. LaVorgna also cites strong residential construction, as a sign of improvement.

“This provides us with some comfort that the recent sub-par performance in the economy is not long lasting and that over time, domestic demand will strengthen, perhaps as concern over Europe fades a bit and the ‘fiscal cliff’ is adequately dealt with,” LaVorgna said in the note. [Business Insider]Christopher Cameron


Related Articles

arrow_forward_ios
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
Knock expands home lending program into South Florida 
Knock expands home lending program into South Florida 
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley
Baptist, Belmont gain approval for luxury senior living in Coral Gables
Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)
Sunrise affordable senior housing facility sells for $30M
Sunrise affordable senior housing facility sells for $30M
Mark Zilbert
Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...