| Few barometers of economic activity say as much as housing data. They usually give ample warning of recessions. Housing sales and construction activity is typically as good at predicting recovery. The prescience of these data speak to the deep linkages the housing sector has to the broader economy. As such, when these data shift in a big way, it pays to pay attention.
US and Canadian housing markets are being hit by big shifts that look like the best of times and the worst of times. As of December, US housing starts are just shy of the million mark, up 37 per cent over December, 2011. In contrast, Canada's January starts plunged 20 per cent compared with year-ago data, eking out just 161,000 units. Are we headed for recession while the US economy recovers?..............................................Full Article: Source
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