Recent improvements in the housing market could be an indicator that 2012 is the year that the overall economy finally starts to find it footing, Bloomberg News reports.
According to the news source, so far this year, national real estate data has demonstrated annual improvements over both 2010 and 2011. In addition, recent gains in both auto sales and the credit industry are also playing a major role.
"From where we sit right now, we think the economy looks fundamentally stronger," Moody's Analytics Marisa Di Natale told the news source. "Surveys of business and consumer confidence are better, the labor market data looks a lot better than it did last year, even some of the housing data looks better."
As the housing market enters its peak season for activity, a recent surge in housing affordability could further contribute to the market's success.
The National Association of Realtors recognized the relationship between mortgage rates, median household incomes and property values at the beginning of 2012 for pushing housing affordability to the highest level ever recorded by the industry group. With these three factors still working in favor of buyers, it could give them the financial safety and soundness needed to make the transition to homeownership.