Good economic news for real estate

The local real estate market may have cooled along with the weather in the Capital Region but a recent report by the Commerce Department shows that our booming economy is doing better than expected.
With all the daily negative news headlines from the mainstream media it was easy to miss the economic report released by the Commerce Department last week. The Gross domestic product (GDP) increased 4.3 percent from July through September. This third quarter fraction was the best since the first three months of 2004 and despite a war, hurricanes, fuel cost and rising interest rates. Economists believe that the GDP would have topped 5 percent had Katrina bypassed the Southeast.
The output of products and services is a reason that Wall Street has been so positive recently and could send the Dow Jones into new territory next year.
So how does all this good economic news affect housing? As long as we are creating jobs and the economy is expanding, the housing sector will expand along with it. If companies are not selling products and services (GDP) and making money they will not hire employees. The unemployed do not buy houses.