Some positive news in recent weeks suggests the economy and housing demand may be gaining some traction after a year of just limping along.

In the advance estimate for the third quarter, gross domestic product accelerated to 2.5% — up from 0.4% and 1.3% in the first and second quarters, respectively.

The Federal Open Market Committee attributed the acceleration to “the reversal of temporary factors” restraining growth earlier in the year. However, there are many other factors that could still derail the recovery.

The labor market remains weak, with the addition of 80,000 jobs in October. While revisions added more than 100,000 jobs to August-September estimates, this year’s monthly job creation averaged a sluggish 125,000 through October. This falls below the pace needed to keep pace with growth in the size of the labor force, leaving unemployment stubbornly high at 9.0%.

On the housing front, the NAHB/First American Improving Market Index showed continued expansion in November, with 30 metro areas on the list; the third-quarter homeownership rate ticked up to 66.1%, the first increase since 2008; and private residential construction spending rose in September.

However, pending home sales continued to drift down, suggesting little improvement for existing home sales over the next few months; and NAHB’s remodeling market index faltered again in the third quarter, after reaching a four-year high in the first quarter.

Also raising concern, several gypsum producers announced plans to increase prices in early 2012, some by as much as 35%. NAHB estimates this would add up to $600 to the cost of building a median-priced house.

The NAHB/First American Improving Markets Index continued to expand for a third consecutive month, rising to 30 in November. Posted: Nov. 7

A recent Pew Research Center study finds that the wealth gap between older and younger households has grown substantially, mainly because of housing. Posted: Nov. 7

In a statement following its Nov. 1-2 meeting, the Federal Reserve Board’s FOMC confirmed that it will continue current monetary policies for the time being. Posted: Nov. 4

A net 80,000 jobs were added to employment rolls in October, resulting in a slight decline in unemployment, to 9.0%. Posted: Nov. 4

Analysis by NAHB finds that younger Americans are delaying forming households, getting married and having children, pointing to long-term demographic changes. Posted: Nov. 4

Out of proportion to the weak housing market, planned gypsum price increases as high as 35% in 2012 would likely increase the cost of building a new home by around $600. Posted: Nov. 3

A diversified economy and a boom in energy and agriculture put Casper, Wyo., on the NAHB/First American Improving Markets Index. Posted: Nov. 3

Despite recent declines in total property tax collections and significant erosion in house prices since 2006, the owners of housing and other real estate are still contributing more than average to state and local tax receipts. Posted: Nov. 2

Private residential construction spending increased 0.2% during September, but has failed to expand consistently over the past year. Posted: Nov. 1

Consumer confidence in October remained at levels close to the darkest days of the Great Recession, but the two most frequently used indexes showed some disagreement over whether confidence was rising or falling. Posted: Oct. 28

Eye on the Economy will not be published on Thanksgiving Day, Nov. 24, it's regularly scheduled publication date. Eye on the Economy will return on Dec. 1.

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