New Year Economic Outlook

Posted by Steve Kleber on Jan 06, 2012

Welcome to the Kleber & Associates blog! Here’s the latest on the New Year Economic Outlook


As we look forward to another mutually successful year, I’d like to take this opportunity to thank you for being a valued reader of our blog, newsletter and social media feeds, and for contributing your opinions… keep them coming!  

For Kleber & Associates, 2012 will be a milestone, as we celebrate our 25th anniversary of building better brands that build a better home.

I’m beyond thrilled and blessed to have seen K&A grow as it has, and greatly look forward to new beginnings not only for the agency, but for our industry and economy as a whole.

The economy added another 200,000 jobs in December – the jobless rate declining to 8.5%, the lowest level in nearly three years. As we ended 2011, predictions for Q4 GDP were increased to 2.8%… I won’t be surprised if we approach 4%.

Consumer spending has exceeded expectations and manufacturing is increasing. Inventories are lean and savings are flush. The share of households delinquent on their mortgages has dropped to the lowest level since late 2008, residential construction is surging and homebuilder stocks continue to lead Wall Street. Previously owned homes for sale are now at the lowest level since mid 2005. The National Association of Realtors reported that the number of people signing contracts to buy homes rose in November to the highest level in a year and a half.

In many cities, owning a home now costs less than renting, while the architecture billings index moved into positive territory for the first time since August. And there’s serious talk of a mortgage re-set to help launder the toxic shadow inventory in the works. But be careful if you’re superstitious… it’s a leap year and we’ve got three Friday the 13ths in 2012!

This entry was posted by Steve Kleber on Friday, January 6th, 2012 at 4:36 pm and is filed under Housing Market. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  1. James Carey says:

    Steve:

    Great report! Good news is infectious. We agree! 2012 is shaping up to be a great year and our best of the last five. Keep it coming!
    -James