The real estate market has shown signs of recovery for much of this year, and the National Association of Realtors expects that uptrend to continue through 2014. However, tight lending restrictions and the fiscal cliff could potentially disrupt the recovery.
"Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contract with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases," said Lawrence Yun, NAR chief economist.
Yun projects that both existing- and new-home sales will see steady increases in the next couple years, which is a positive sign for the recovering market.
According to the Wall Street Journal, a strong performance by Home Depot could also signal a sustainable recovery in the real estate market.
Home Depot chief executive Frank Blake told the newspaper that their third quarter performance was stronger than expected, thanks to the recovering housing market. He added that the market will be able to assist the company's growth, rather than being the "anchor" it was in the past few years.