St. Louis Fed President James Bullard has stated that despite the slow growth thus far economically, he still believes that the jobless rate of the US will drop below 6% because of booming economic growth. He projects that from an economic standpoint, 2014 will outdo 2013. Bullard says that the real estate market is in a position to have a great, although not as good as last year. He agrees with the notion that the torrid weather that has affected the majority of US soil is undoubtedly brought the economy down a step or two, but believes that this minor hiccup will have hardly any impact on the way the economy booms later on this year.
http://www.cnbc.com/id/101455369
I wonder what the effect would be if we continue to see such harsh winters in the mid-west. You would guess that this winter we have received this year has had a negative effect on the housing market. Its pretty hard to buy or sell a house when every other day is a blizzard or below 0. If this keeps up, we will see the housing market will slow greatly.
ReplyDeleteIts great to have such optimistic and encouraging predictions about the future, but I always wonder how many times do these optimistic predictions come true.
ReplyDeleteThis article doesn't mention the fact that there are a lot of people who are falling out of the labor force. This would decrease the size of the labor force, but it would not be good for the economy. The current labor force participation rate is currently 62.8%, which is the lowest level since 1978. Furthermore, there are current trends that investors should be watchful of for future economic conditions. If you look at some recent economic news, you will see that the Millennial Generation or any other younger generation has been slow at buying homes. While the author of this article estimates that the real estate market is looking great, it is also possible that the housing market and other markets may not look as good in the future if current trends continue.
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