UCLA released today, the quarterly "Anderson Report", an economic forecast for California's overall economic health. The key points in today's report are:
1.) Housing sales are expected to be slightly down or flat through next year, a trend we're already seeing in some markets.
2.) The impact of this real estate downturn had been and presumably continue to have little effect on the rest of California's economy.
3.) A marginal slowing of job growth has sparked the slightest increase in unemployment. Real Estate related job losses have been in the mortgage business where dozens of companies have gone out of business or filed for bankruptcy. Construction employment peaked last year along with new growth.
4.) Payroll growth is expected to slow to less than 1% though the report didn't indicate where it is now. Personal income growth will slow to under 3%.
5.) And now for the good news... The economic picture for is expected to improve by mid-year in 2008 and be back in "normal" growth levels by year's-end. The U.S. Economy will see overall growth above 3% when the Federal Reserve is expected to cut interest rates sometime after the 4th quarter.
On a side note: I compile this information for the benefit of my clients, friends, and colleagues, who know to take it all with a grain of salt and not rely on anything in these reports. If you would like to access the "Anderson Report" yourself, you can visit http://www.uclaforecast.com/ , or do what I do and wait for someone to send you a 20 page e-mail, so you can translate it for them. Cheers and Thank you for visiting this Blog.
John Wall
CENTURY 21 Results
http://www.teamresults21.com/
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