Former Fed Official Sees Better Housing Market

New York, NY, Dec. 28, 2010 -- The housing market, partly on the strength of new construction, may be about to turn around, according to a Bloomberg News story.

Citing low interest rates, increasing household formation, and a slowly growing job market, Bloomberg's story indicates the market may be about to turn.

A rise in homebuilding would increase jobs for construction workers and also for people in industries like floorcovering that go into new homes.

“The housing market is going to shock people,” said  Charles Lieberman, chief investment officer at Advisors Capital Management LLC and former head of monetary analysis at the Fed Bank of New York.

"If we see job growth we are going to see a very strong housing market.”

Lieberman told Bloomberg that jobs will increase by an average of 200,000 a month next year, pushing the unemployment rate, 9.8% in November, down by almost one percentage point.