The housing market recovery is picking up speed with builders expressing more confidence about construction demand and falling gas prices providing consumers with more disposable income, Goldman Sachs (GS) suggested in a new report Friday.
The report arrives at a time when forecasts for housing are somewhat improved, but worries remain over the potential global impact of the euro zone crisis and stagnant unemployment numbers.
In fact, the national debate over whether another round of quantitative easing is warranted remains in the news as the Federal Reserve grapples with an unemployment rate stuck well above 8%.
The latest Goldman Report comes from the firm's global economics, commodities and strategy research team. The team forecasts roughly 10% growth in residential investment but recognizes that risks remain in the sector.
Still, the report is generally positive with Goldman saying, "prices are now edging up, and the trough is probably behind us."
Goldman said in March it was more pessimistic about housing because of stagnation in disposable personal income, but real disposable income growth has evidently picked up from zero in early 2012 to 2.7% in the three months leading up to May.