Positive signs on employment and national economic growth should start being felt in the housing market in the coming several months, say top economists.

The Labor Department reports that there were 2.7 million job openings last month -- 200,000 more than in the same survey the month before.

Meanwhile, the consensus forecast among private and government economists for the main barometer of the U.S. economy's health, gross domestic product or GDP, is for a very solid 3 percent during the first quarter.

Alan Levenson, chief economist for T.Rowe Price Associates, said the latest reports are “indicative of a labor market and economy that is in the midst of recovery.”

That's hugely important for real estate because expanding employment created by a rowing national economy are the essential fuels to power housing demand and sales.

Even though harsh weather conditions knocked the wind out of pending home sales and real estate shopping in many areas during January and February, analysts say the spring and summer market should be strong.

Lawrence Yun, chief economist for the National Association of Realtors, says the $8,000 and $6,500 federal home purchase tax credits that expire at the end of April for signed contracts -- and the end of June for closed deals -- should squeeze a lot of sales volume into the spring and early summer months.

Assuming slow but steady improvement in the jobs picture, Yun forecasts a solid second half of the year as well.

On the home pricing front, evidence continues to mount that in most parts of the country, home values have either bottomed out or have turned positive.

The most recent Case- Shiller index numbers on the top 20 metropolitan markets bear that out -- and last week's Zillow home value report found values essentially flat on a national average basis. They were down by just three tenths of a percent, but up in some major markets of note.

For example, Boston's home values are up nearly two percent year-over-year, according to Zillow, and Los Angeles, San Diego, Denver and Philadelphia have registered gains after long periods of negative numbers.

Two other statistical hints that conditions are improving: The difference between listed prices and selling prices of home nationwide is now smaller than it's been in a year, according to real estate research site Trulia.com.

And Realty Trac fond that foreclosures, which are clearly still a massive drag on the market -- dropped by two percent last month -- the second straight month of decline.

In a tough market, I guess we should appreciate even the smallest of improvements.

Published: March 15, 2010

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Kenneth R. Harney writes an award-winning, nationally-syndicated column on housing and real estate from Washington, D.C. He is also managing director of the National Real Estate Development Center, a professional education company. He is a past member of the Federal Reserve Board's Consumer Advisory Council, a committee that by federal statute reviews all Fed actions on home mortgage, consumer credit and banking industry regulation. He served as a member of the U.S. Department of Housing and Urban Development's Working Group on Computerized Loan Origination (CLO) systems, and is a member of the Editorial Board of the Fannie Mae Foundation's journal, Housing Policy Debate. He is the author of two books on mortgage finance and real estate.