In a report in Big Builder, Moody’s economist Mark Zandi lists three reasons for optimism about the economy, and housing:

  1. Job growth: Zandi reports that many corporate balance sheets have reached a point where “it’s not a question of can companies hire more people, it’s a question of willingness and confidence vis-a-vis health care, Dodd-Frank financial reform issues, and taxation.” Zandi forecasts a return to a normal rate of unemployment by 2014 or 2015.
  2. Housing Finance: Zandi reports that the financial system is correcting the wrongs of the 2000s and he sees improvements in the banking system and predicts improved availability of credit to begin to improve for consumers and businesses.
  3. Demographics: Zandi reports that economic activity has been suppressed and well below the underlying growth in population and other demographic patterns. Zandi suggests that he is seeing pent-up demand gradually work its way into the marketplace and expects that to result in an improvement in housing.