The GDP, or gross domestic product, has grown for the first time since the middle of 2008. A key factor when measuring a nation’s standard of living,  growth in the GDP affirms the improvements many REALTORS® are seeing in their local market. However, even with buyers finally buying, many wonder if the improvements are only temporary.

Christina Rordam blogs about the economic surplus:

“The end of the recession?? While I don’t want to speak too soon it appears we are reaching the end of some of the major economic troubles the U.S. has been facing. For the first time in two years, the economy grew 3.5 % in the third quarter according the Associated Press and Florida Association of Realtors.

Many believe this surplus is due to the government sponsored programs such as the $8,000 first-time home buyers tax credit and the government’s Cash for Clunkers programs. As always, the health of the housing sector is key to the economic turnaround we are now experiencing.”

Economists warn that the growth is only the result of consumer spending, spurred by programs like the first-time buyer tax credit and the Cash for Clunkers program, as Rordam points out. Realtors too are conscious of the effect the tax credit has had on the economy and the housing market. Many suspect that if incentives like the credit are not extended, buyers may lose confidence and growth could come to a halt.

Clic through to read Christina Rordam’s full post.

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