February is when the majority of the sources we rely on for market data put out their reports for the forth quarter of the previous year. It is also a time when we look back at the prior year and try to extrapolate the data to predict the trends and expectations of what is to come in the year ahead. It is sometimes difficult to assimilate the many reports and form a singular cohesive hypothesis for the outlook of our market. We feel it is important that we supply our clients with current information about our local market and how the national and global trends may affect your investments and future real estate purchases.
We have been listening to economists and market leaders from around the nation for several months. Many of these analysts have stated similar findings and predictions. They overwhelmingly agree that the core economic indicators are strong and that the underlying data is pointing toward a recovery.
*GDP growth has been steady for the past ten quarters. Real GDP grew 1.7% in 2011 (2010 annual level to the 2011 annual level) and was up 2.8% in the fourth quarter.
*Personal income increased $61.3 billion (.5%), and disposable income increased $47.1 billion (.4%) in December of 2011 according to the Bureau of Economic Analysis website.
*In a report issued in January by The Commerce Department’s U.S. Census Bureau reporting retail sales data for December and full year 2011 showed strong growth last year, compared to 2010, increasing 7.7 percent.
*Over 243,000 new jobs were created in January 2012, and the unemployment rate decreased to 8.3 percent, according to the U.S. Bureau of Labor Statistics.
Real Estate and Housing:
*Mortgage interest rates are at all time lows. The 30 year fixed mortgage rate is 3.87% in February 2012.
*The National Association of Realtors statistics show that the affordability of housing was the most favorable on record in 2011 at 13.6% of a household’s income.
*2011 Foreclosure activity and foreclosure rates were at the lowest levels since 2007 according to Realty Trac at 1.45% of US Homes. This is down from the high of 2.23% in 2010.
This is a very interesting time in history where real estate/home prices low, interest rates are at all-time lows, and rents are on the rise. What a great time to be a real estate investor! What a great time to build wealth! In 5 years, will you look back and wish that you had made the move off the sidelines and into the game? Commercial Northwest Property Management is ready to partner with you in your journey–helping you build future values today!
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