Any good real estate agent or relocation professional should stay on top of national economic news as well as news at their local area, and at Colorado Landmark, Realtors that’s just what we try to do every week. Last week I had the privelege of attending the Rocky Mountain Relocation Council’s Fall Conference held at the Arvada Center.
The first guest speaker was Dr. Scott Anderson PhD, Senior Economist at Wells Fargo Bank, d in Minneapolis. His words about the state of our nation’s economy and what that means for real estate on a national level didn’t exactly bring smiles and fist-pumping enthusiasm to the room of about 75 real estate, mortgage, and mobility professionals. A few brief highlights from his speech:
- The housing market will continue to underwhelm in the foreseeable future
- We are enduring one of the worst recessions since the Great Depression
- Overall loss of wealth during this 2.5 year period is $17 trillion, representing 20 years worth of savings
- 14% of mortgage holders are not making their payments
- The Chicago Mercantile Exchange is predicting national declines of 5% in housing prices
- The pipeline of foreclosure properties is still filling
- We currently have the highest federal deficit since World War II
- A national sales tax could be coming, as well as cut backs in Social Security
And that was the good news … just kidding! There really WAS some good news, but the question is, is that news good enough to sustain our economy going forward? That remains to be seen. Some positive notes from his speech:
- Corporate profits always lead job growth … and they are now above pre-recession levels
- In Q2 2010 business spending grew 25%, which is not sustainable, but some measure of double-digit growth IS
- 1.5-2.5% growth in the national economy is predicted for 2011; when this number goes over 3% it will be enough to have a meaningful impact unemployment
Stay tuned – later today or tomorrow we’ll post some notes from the other conference speaker, Cheryl Meyn from Denver’s The Genesis Group who gave detailed economic info on our 7-county Denver Metro Area.