Is the tide rising?

Housing and employment show good signs.

The downturn we call the Great Recession, which was our nation’s worst economic crisis since the Great Depression, began in December of 2007. The recession itself (defined as multiple consecutive quarters of negative GDP growth) ended in June of 2009. However, as we’re all too well aware, the recovery has been slow, halting and uneven.

At last, we’re glimpsing an end to that. If the collapse of the housing industry was what presaged the downturn — and it was — then a housing recovery means good news for us all.

We now know that the rate of foreclosures in 2011 decreased 24% as compared to 2010. The number of homeowners 90 days or more delinquent on their mortgages was down to 7.3% of all borrowers as of December 2011, versus 7.8% the previous December. And the number of U.S. metro areas showing measurable improvements in their housing markets increased to 98, as of the first of this month.

Do we still have further to go, and are there dangers still ahead? Yes and yes. But don’t let that keep us from indulging in a bit of optimism.

The Dow is up and unemployment is down. The housing industry is on its way back. The tide is rising and all boats are being lifted. Let’s enjoy it, celebrate it, and then let’s roll up our sleeves and get back to work.

The C4:

1. The Great Recession (2007–2009) was triggered by a collapse of the housing and mortgage industries.
2. The recovery has been one of the slowest on record, with nearly 18 months (mid-2009 through 2010) of little or no improvement in housing and employment.
3. There’s ample reason for optimism. We’ve seen five consecutive months of improving employment numbers, and a steady rise of the major stock indices.
4. Within Ohio and across the nation, the housing market is recovering. Healthy housing will complete this recovery. Cheers to that!