Where We’re At
Where We’re At
By: Nicholas A. Dunlap, CPM
Being the hybrid economic optimist/realist that I am, I want to point out some of the signs suggesting that our economy is improving. To liken our economy to a rock and a lake, I’d like to think that the rock is no longer sinking to the bottom of the lake, but skipping along the surface, waiting for a big enough gust of wind to make a jump to the surface. The surface, of course, signifying the full recovery of our economy.
To put it all into perspective, multifamily owners in Orange County, California are truly fortunate. In spite of the State’s poor leadership and over-regulative measures, our sector of the market is rocking, in part due to the overall improvement of outlying economic fundamentals.
Here are four figures I’m looking at:
1. Recent highs in Black Friday and Cyber Monday sales figures. True, this reflects the consumer’s needs for bargains in tough times, but through that, we still see that these numbers are up 33% year over year for Cyber Monday and as much as 32% for Black Friday. Regardless of these days being stereo-typically huge shopping days, 30% growth year over year if phenomenal. That’s real money, not Obama-extended, unemployment so I can buy Christmas gift money.
2. Gas prices are down in some Orange County, CA locations by as much as $0.15 per gallon, true, that means were at $3.41 from $3.56, but it’s less money wasted on fuel.
3. Nationwide unemployment figures have dropped to 8.6% nationwide as a result of private sector(not public) job growth. That, my friends, is job growth to be proud of.
4. Market and existing rents on multifamily housing are up and continuing to increase by as much as 5 to 10% year over year depending on your local market.
Of course, the numbers speak for themselves. You don’t have to be an economist to read them, maybe just to forecast where they are headed.