state of the economy. u.s. economy today residential real estate market weak home sales low...
Post on 21-Dec-2015
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State of the Economy
U.S. ECONOMY TODAYRESIDENTIAL REAL ESTATE MARKET
WEAKHOME SALES LOWDEPRICIATION OF PROPERTY VALUE
REAL ESTATELENDING IN THE CONSUMER MARKET
POTENTIAL BUYERS ENCOUNTEREDDIFFICULTY FINDING FINANCINGHARSHER TERMS IN LENDING
WAGEMODERATE OR LIMITED WAGE
GROWTHWAGE PRESSURE FROM THE PEOPLE IS
REPORTED TO BE MODERATE.EXCEPT FOR A FEW SKILLED LABOR
POSITIONS
TOURISM/AUTOMOBILELOW TOURISM DUE TO HIGH GAS
PRICESPEOPLE TAKING VACATIONS CLOSER
TO HOMEDROP IN CAR AND LIGHT TRUCK
SALES, BUT SALES IN FUEL-EFFICIENT CARS IS SOLID.
PRICESPRICE INCREASESFOOD, CHEMICALS, ENERGY, METAL, AND
PETROLEUMINCREASE IN INPUT COST PASSED ON TO
CONSUMERS, BUT EXPECTED PRICES CONTINUE TO RISE
MINNEAPOLIS GROWTH AT A SLUGGISH PACE FROM
LAST YEAR
REAL ESTATEMINNEAPOLIS IS NO EXCEPTION TO THE
HOME CRISIS.HOME SALES DROPPED 6% IN
MINNEAPOLISHOME VALUE DROPPED BY 4% STATEWIDE
IN WISCONSIN.
REAL ESTATE
REAL ESTATEUNITS PERMITTED FOR CONSTRUCTION
FELL 67% IN APRIL FROM LAST YEAR IN THE ST. PAUL AREA IN MINNEAPOLIS
REAL ESTATECOMMERCIAL CONSTRUCTION HAS
SLIGHTLY INCREASEDNEW HOTELS BEING BUILT IN SOUTH
DAKOTATHROUGHOUT THE WESTERN PART OF
THE DISTRICT THERE IS EXPANSION
WAGES/LABORLABOR MARKETS ARE FLATGREAT NUMBER IN LAYOFFS DUE TO
TIGHT EMPLOYMENTA PRODUCER OF COMPUTERDISKETTES WILL CLOSE ITS PLANT BYEND THE YEAR IN NORTH DAKOTALEAVING 390 WORKERS OUT OF THEJOB
WAGES/LABORLIKE THE REST OF THE COUNTRY
MINNEAPOLIS HAS HAD A MODERATE INCREASE IN WAGES
THE MINNEAPOLIS FED EXPECTS WAGES AND BENEFITS TO GO UP 2.4% PER WORKER IN THE NEXT 12 MONTHS
PRICESMINNEAPOLIS HAS HAD AN INCREASE IN
PRICESPRICES FOR STEEL/ALUMINUM HAVE
GONE UP 35%FLOUR PRICE HAS RISEN 130% IN THE
PAST 3 MONTHS, WHICH HAS LED TO AN INCREASE IN PRICE FOR A LOAF OF BREAD
TOURISMMINNESOTA BASED AIRLINE HAS RAISED
ITS PRICES DUE TO HIGH GAS PRICESTHE TOURISM IN SPRING WAS DOWN DUE
TO THE WET, COOLER THAN USUAL WEATHER
HOPES ARE UP FOR THE SUMMER
AGRICULTURE
DUE TO BAD WEATHER CONDITIONS THERE IS A DELAY IN PLANTATION AND DEVELOPMENT OF CORN AND SOYBEAN
FARMERS CONCERNED THAT HIGH COSTS IN INPUT WILL LEAD TO HIGHER PRICES FOR CONSUMERS IN SOYBEAN, WHEAT, AND CORN
Change in Money Stock
PropositionAN INCREASE IN THE CURRENT FEDERAL
FUNDS RATE BY 25 BASIS POINTS
Why worry about inflation now?
Changes in the CPI
Changes in Inflation Expectations
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