Issue link: http://read.dmtmag.com/i/134956
Market Update ("BINGO! U.S. Housing Market Finally Getting Its Numbers" continued from page 26) Beginning in the final quarter of 2011, the housing industry finally began bouncing back, and it's doing so in a big way. In fact, it is outpacing economic growth exponentially. In December 2012, for example, overall economic growth was 0.1 percent, while housing growth was 17.4 percent. GDP and Housing in Recovery Annual Change 10% 0% 20.6% End of buyer credit 20% Beginning of Recovery Housing component now growing faster than economy 12.0% 4.1% 17.4% 13.6% 8.4% 2.0% 1.3% 3.1% 0.1% -10% -20% -30% GDP RFI Crowe illustrates: "We've got housing growth – the component of GDP that's attributable to housing construction – growing at two, three and four times the overall rate of economic growth. [Housing] is finally doing the job that it is usually expected to do." Localized Housing Growth This positive housing trend is also evident in NAHB's improving markets index that indicates which metropolitan areas are improving based on three key indicators of economic health: single-family housing permits, home prices and employment. When an area shows improvement in each of these areas for six months or more, it is considered an improving market by the NAHB. In September 2011, the first month for the NAHB index, only 12 markets out of 360 – slightly above 3 percent – made the list. In May 2013, that number grew to 258 communities, just under 72 percent, indicative of positive growth in the housing market. All 50 states and the District of Columbia are represented by communities in this list, including four markets new to the list – Dothan, Ala.; Elizabethtown, Ky.; Salisbury, Md.; and Salem, Ore. Though 19 metro areas dropped from the list, the overall trend is positive. "This points to the notion that the recovery is localized, and it will continue to be localized until we get enough We're More Committed Than Ever Before. Covering more than 24 states, our commitment to the construction equipment industry hasn't changed. We're more committed than ever before. Our team of industry experts tailors nationally competitive products to meet your specific needs because we understand the unique challenges you face every day. With customized solutions, the capacity to lend and the backing of BOK Financial, a $27 billion financial services holding company, we're ready to invest in your future. So, give us a call, or better yet, let us come see you. Lending | Syndication 480.666.8993 | www.bokfinancial.com /committed ©2013 BOK Financial Equipment Finance, Inc. is a subsidiary of BOK Financial Corporation. Member FDIC. Equal Housing Lender CM_051713_HeavyEquipment_ConstruEquipDistri.indd 1 5/16/13 12:50 PM 28 | www.cedmag.com | Construction Equipment Distribution | June 2013 26_Housing_Feature_Index_KP.indd 28 5/31/13 2:42 PM