As we look to a return of a better Real Estate Market there a certain factors that may be in evolution at this entry into summer. Cycles have long been a part of Real Estate and will continue to process as human interventions takes shape. We just cannot total forecast what the human mind will achieve. However positive factors listed by Lori may be a excellent start..
The remarkable turbo-charged 2011 economic comeback of U.S. manufacturing is comprised of a perfect storm of positive components:
* Lots of demand in the broad industrial market - utilities, refineries, oil, natural gas, plant expansion and production> Also, increased demand for rental space particularly in the large metropolitan areas has rekindled the high rises.
* An unexpected export surge with a major boom in Southeast Asia - especially China and India. With almost 35% of the world's population, these 2 countries are using trillions of surplus cash to upgrade their living standards. Both American agricultural and consumer products are benefiting.
* A lessening of the margins between overseas manufacturing costs and transportation. By 2015 China's labor cost increases are estimated to add on 20% per annum, while U.S. labor costs will increase no more than 3% annually.
*Increase in inventories. During the Great Recession, many companies used 'just in time' inventories. Now manufacturers and distributors are stocking up.
* International companies like Caterpillar, NCR, General Motors, and others have returned some of their overseas facilities to the U.S. and plan further U.S. expansion.
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La Quinta, Palm Desert, Indio, Rancho Mirage, Coachella , Indian Wells and the surrounding Palm Springs Area.
78065 Main St., Suite 107
Old Town La Quinta
La Quinta, CA 92253
Phone: (760)777-8788 • Fax: (760)771-5355