From: US GIO To: Undisclosed recipients:; Subject: J.P. Morgan Macro Skinny: US housing market emerging from the shadows Date: Fri, 21 Sep 2012 14:48:43 +0000 Attachments: 2012-09-21_Housing_market_emerging_from_the_shadows.pdf Inline-Images: image005.png; image008.png; image009.png; image010.png; image01 1.png; image012.png; image013.png; image001.png; image014.png; image003.jpg; image002.png September 21, 2012 US housing market emerging from the shadows 1. The housing market is turning the corner. The housing market bottom that has been forecast over the past several years has failed to materialize. This has been especially true for home prices, which have consistently been projected to rise "next year" (left chart). The recent spate of housing data has been stronger than expected: prices have turned positive; new construction is picking up; and sales of new and existing homes are rising.' Although residential investment has not been the engine of economic recovery it usually is, housing has made a meaningful shift to boosting GDP growth, rather than dragging it down (right chart). EFTA01181204