The Real Estate Ripple: Catching the Wave?(Financial Views‪)‬

Commentary The summer of 2004 is shaping up as an interesting economic period, one in which the fledgling recovery tries to maintain momentum as it seeks to get back on track. There are a number of signs that things will continue to improve: domestic job growth has finally begun to resurface, the housing market remains strong, the stock market is holding onto its recent gains, economic indicators are generally positive, and businesses appear to be gearing up for more expansion. Despite these optimistic notes, a number of clouds remain, especially the spillover effects of rising energy costs and the seemingly endless fight against terrorism. Even with the continued angst over such issues and some recent slippage, consumer confidence remains relatively strong and long-awaited job growth is providing some sense of optimism. Consumers continue to play their role in the economic recovery, as evidenced by the increase in air traffic and vacation plans that have been dampened over the past several years. However, the sustainability of the recovery ultimately hinges on the business sector remaining on track.