Info That Hits Us Where We Live-Projected Overall Economic Growth 2014
QUOTE OF THE WEEK… “I was obliged to be industrious. Whoever is equally industrious will succeed equally well.” –Johann Sebastian Bach, German composer
INFO THAT HITS US WHERE WE LIVE… We who toil in the housing market may not be as successful as the Baroque musical genius, but we should do all right this year. Fannie Mae projects overall economic growth to rise from 2.6% in 2013 to 2.9% in 2014, with housing’s contribution expected to double from 0.3% to 0.6%. Fannie Mae economists also expect a modest rise of about 2% in existing home sales for the year, and a strong 20.2% gain for new home sales. The median price for an existing home will go up 6.7% on an annual basis, to $208,000, while the new home median price is expected to rise 6.8%, to $283,000.
The Mortgage Bankers Association (MBA) is forecasting purchase loan originations to reach $677 billion for 2014, 3.8% higher than 2013. Looking back to December, Housing Starts came in down 9.8%, to a 999,000 unit annual rate. But single-family starts are up 7.6% from December a year ago. Most significantly, builders started 928,000 homes in 2013, which is up 18.4% over 2012 and the strongest year for new home starts since 2007. New building permits were down 3.0% In December, to a 986,000 annual rate, but single-unit home permits are up 4.5% versus a year ago. Analysts have noted the underlying trends for home building continue to rise.
BUSINESS TIP OF THE WEEK… The first step in achieving growth is to adjust your thinking. Understand that growth is mandatory: if you don’t grow, sooner or later, you’ll shrink.
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Orson B.Klender, Associate Broker
Keller Williams Realty Saratoga Springs
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