Around this time of year most of us take time to reflect on the past year, while looking forward to the new one. Â The same is true for us at Patrick Stewart Properties. Â So we did a little research about our economy and real estate. Â And we though we would share.
In 2012 the economy experienced some â€œsignificantâ€ positive gains in crucial areas. Â Indicating that the recession is quite possibly in the â€œrear-view mirrorâ€. Â While economists will not state the U.S. is in full economic recovery, as of November 2012, there were positive gains in almost every area â€“ and substantial growth in the housing market. Â Key indicators include:
- GDP grew 2.1% (2.7% in third quarter)
- Consumer confidence grew from 55.2 to 73.7 when comparing year over year
- Unemployment, while still high is nowhere near the 10% figure reached a couple of years ago. In fact it is at 7.9% while most predicted it to be 8.5%
- Jobs are consistently being added in the workplace. Â Job growth is averaging 150,000 new jobs per year. And there have been 500,000 new jobs added in the past three months.
- Inflation has eased, and according to the Kiplinger report they expect 2% inflation next year.
- Business spending has been rocky at best, but economists are predicting 4% growth later in 2013.
- Single-family permits are growing the fastest they have since 2008.
- Foreclosures, pending foreclosures and distressed inventory are down across the country
Each of these gains, as predicted, was very small. Â Some economic indicators, such as housing and employment figures surprised analysts. Sustained economic growth and recovery is extremely risky. Â Most research indicates that companies and individuals are holding off on moving forward because of the pending national debt crisis â€“ the fiscal cliff. Â And the economic uncertainty in Europe and instability in the Middle East continues to slow growth. These three factors alone have slowed what could be a full recovery. Â Most analysts are predicting more robust growth in the second half of 2013, with 2014 and 2015 achieving significant gains.
Let’s hope that our government figures out the fiscal cliff! Â 2013 will be a great year for Palm Springs real estate, whether you are a first time buyer, or interested in estate-sized homes.