Home Depot Economic Indicators Essay

Free market indicators of the housing market have many economists thinking that a housing recovery cannot survive without government support. Yet the real 800 pound gorilla in the room that no one is discussing though is that the government is really not in any position to help support a housing recovery. At present, the Federal debt is approaching almost 100 percent of GDP and the Federal Reserve continues to maintain interest rates at a 0.00 rate. This means that the resources are very limited that are available to the government to help support a housing

Realty Trac Staff. “U.S. Residential Property Vacancy Rate Drops 9.3 Percent Between Q3 2015 and

The housing market was once known as the biggest money making industry in the United States. Housing, which was the way our economy made the majority of their money, is now contributing less to the economic expansion. The decline in the housing market has raised many concerns throughout the entire country. This paper provides statistics on the United States population housing market, economy, demographical characteristics, demographical area and the large amount vacant property. Included in this research document are analysis of data sets, charts and graph to help interpret the housing crisis.

Many Realtors in the Chambersburg area are able to recognize the area's consistent growth in the housing market. In recent years, more new homes have been built within the area, and a number of refurbished homes are available on the market on a continuous basis.

The housing market began the second half of 2015 on a positive note, after June’s reading of -1.80 percent. Pending home sales for July grew by 0.50 percent. Led by a solid gain in the Northeast, contract activity in most of the country held steady last month and bodes well for Existing Home Sales to maintain their elevated pace, as we close out the summer.

The Home Depot is developing long-term plans and strategies that encompass a broad view of the home improvement industry. This view of the industry includes all sales of home improvement and other housing and building-related products for new and existing homes. Totaling over $365 billion annually, our industry provides many exciting opportunities for long-term growth, a number of which have been identified and targeted. The company also continues to explore additional growth opportunities, which will allow further, extend of pattern of steady sales and earnings

The home building industry has many factors that set the prices. In this report, it show them the supply and demand of new homes in down. So companies are trying to get rid of the inventory they have before building more. The externalities within the industry are ever-changing. The changes all depends on the buyers needs, if it positive or negative. As the demand lower for building new homes so does the demand for labor. Final the government rules and the distribution of permits are a factor. All the factors from the economy affect the housing industry. Furthermore it affects what we paid of houses in our area.

Based on the official report from CBRE, 2015 - 2016 will be a strong fiscal year for U.S multifamily market to grow. The projected trading and investment value is recorded to be $125 billion, reflecting a year to year incremental margin of 15%. The report also illustrates that demand will substantially growth in most metropolitan cities. Real estate absorption rate will reach a height in yearly-average, approximately around 25% above the historical average level. Millennials, single family homeowners with remodeling needs and new demands from baby boomers will shift the traditional market orientation from urban fundamentals to suburban spaces. As transportation system and walkability become the new focus for both domestic and international investors, CBRE forecasts that a 5% gain will be distributed throughout new mix used developments and acquisitions within a $131 billion market cap. (for board pictures)

As home prices continue to skyrocket, speculation in the market persists and reinforces the upward trend in the housing market. Data from the National Association of Realtors, or NAR, reveals that some of the conditions that led to the 2007-2009 housing bubble and crash began reappearing in 2015. According to NAR, home price increases have been incredible in the previous years; in May 2015, 39 successive months of increases in housing prices was recorded; since the last housing bubble and crash, from May 2014 to May 2015, home prices have gone up a staggering 7.9%. In addition, the NAR noted that 5.1% of the existing housing market inventory sold, which when seasonally adjusted, equated to a rate of 5.35 million homes.

In good news to potential buyers, economists expect real estate prices to, after a three-year period of extreme growth, slow down substantially beginning in 2016. For the first time since 2009 the Moody’s/RCA Commercial Property Price Index (CPPI) is dropping “below the long-term average growth rate of 5.8 %.” The CPPI will continue to grow “at very subdued and slowing rates”: 5 percent in 2016 (down from 12.7 percent in 2015), 2.7 percent in 2017, and 3 percent in 2018.

The housing sector is recovering and residential investment will continue contribute positively to GDP growth. Housing starts have topped an annualised rate of 1 million for the past five months. Existing home sales have declined recently, but they have been above expectations for most 2015. The recent acceleration might not be supported in the medium term because of limited supply and affordability constraints.

Due to the U.S. Governments relaxed lending stipulations and low interest rates, the demand for houses soared from 1996 to 2006, consequently increasing home prices across the country. During this time period home prices rose nearly fifty percent (Li, 2015). Comparatively, from

Overall, housing accounts for nearly 20% of U.S. economic activity: private residential investment which includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees averages roughly 5% of GDP historically. While housing services (including gross rents paid by renters, owners ' imputed rent and utility payments) averages roughly 13% of GDP.

Until then, investors braving the current housing market say that if you 're patient and buy right, there is still money to be made buying and reselling homes.

Additionally, a good Realtor will be able to conduct research, spot the trends and advise you accordingly.