Economic, Construction, and Real Estate News
March 1, 2012 1 Comment
We have had a lot of economic, construction and real estate related news in the past few days. Instead of looking at just one of them in a vacuum, I am going to highlight many of them.
- Nationally, consumer sentiment rose to 70.8 in February from 61.5 in January, achieving a sizable improvement. Consumers’ expectations rose to 88.0 from 76.7, while their views on current conditions increased to 45.0 from 38.8. See the full story here.
- Warren Buffett says along with equities, single-family homes are a very attractive investment right now, based on a CNBC interview. He believes that the market is getting back into a situation that if the homes are held for a long period of time and purchased at low rates, the houses are even better than stocks.
- An article in the Triangle Business Journal states that economic activity appears to be picking up across North Carolina, with fewer people filing first-time claims for state jobless benefits and forecasters predicting a bounce in new housing starts by 2013.
There have been a number of stories in the past several days about the local construction and real estate industries. Some of it was good and some of it was not.
- One of the negative stories was the report on the change of the Triangle’s construction industry employment figures. I feel like we all logically knew this. However, the numbers show that the Triangle peaked in December 2007 when payrolls were hitting 40,400. Then came the contraction. By December 2011, according to Virginia-based Associated General Contractors of America, Triangle payrolls had dropped 30 percent to 35,300. (Check out the full article here).
- California-based commercial real estate firm Grubb & Ellis filed for bankruptcy. Grubb & Ellis does have an affiliate in the Triangle. It appears that Grubb & Ellis will be bought by New York-based BCG Partners Inc. as part of the Chapter 11 bankruptcy process. There is no news of how this will affect the local affiliate.
- The residential market update for 2011 from Birch Appraisal Group was released showing 2011 average prices and percent to assessed value by jurisdiction for Wake County. Cary had the highest average price and Apex had the highest percentage. Garner came in with the lowest in both categories.
- Preston Development looking at 7,108 acres for Chatham Park, a masterplanned community that mixes the golf course and executive homes of Prestonwood and business hubs of Research Triangle Park. The idea is to essentially develop a RTP 2.0.
–J. Nolfo helps companies understand their market and customers though a variety of market research strategies. He has over ten years of experience of market research for strategic planning purposes. He is the Director of Research at Rhino Market Research. He shares his thoughts about market research and business concepts with his blog “Pensare…Understanding Market Research in Business“. If you would like to discuss this blog or how J. can help you understand your market and customer needs, email him at firstname.lastname@example.org.