Economic activity in the non-manufacturing sector grew in February for the 38th consecutive month, according to the latest Non-Manufacturing ISM Report On Business. Real Estate and Rental & Leasing are listed in the 13 non-manufacturing industries reporting growth.
The Federal Reserve Beige book updated on March 6, 2013 noted that real estate activity expanded in all the twelve districts. Residential real estate activity continued to strengthen in most Districts, although the pace of growth varied.
AOL Real Estate has come with an interesting article analyzing the future of the housing market. A quote from the article – “A combination of baby boomers aging into retirement and their children maturing into more secure financial standings could encourage significant improvement in the national housing market through 2030, according to new data from the Bipartisan Policy Center.” That’s roughly 78 million aging baby boomers, and 62 million millennial. Investing in cash flow properties through self-directed Individual Retirement Accounts (IRAs) offer significant opportunities to baby boomers.
Clear Capital, the real estate research firm based in California has released its Home Data Index Market Report showing that the home prices are up 6.1% over the year in February. Quarterly home prices have risen 1.0% at the national level even through the winter season indicating that the recovery has momentum.
Private-sector employment has increased by 198,000 on a monthly basis, according to the ADP National Employment Report for February.
Total nonfarm payroll employment increased by 236,000 in February, and the unemployment rate edged down to 7.7%, according the Bureau of Labor Statistics. Employment increased in professional and business services, construction, and health care.
Initial weekly jobless claims dropped to 350,000 last week reaching a 5 year low. According to a report by The Los Angeles Times on the jobless claims, economists say that weekly jobless claims below 350,000 indicate moderate growth in the labor market. This is good news for the housing industry as job growth is critical to continued turnaround of the market.
Freddie Mac’s 30-year fixed mortgage rate is at 3.52% for the week ending March 7, 2013, and the 15-year FRM is at 2.76%.