Economic State of America

-

 Hi, first and foremost thank you for taking the time to trust me to deliver information that I believe can be valuable to us all. 

Coming out of the Pandemic I've been looking out for information that can help guide our day to day choices and investment decisions. One of the most informative finding is from the Federal Reserve. For those of us who don't know what the feds do I can sum it up to this: make sure that the economy of America is Healthy & Viable.

The Feds have two Mandates: Maximum employment and Stable prices of goods, commodities and services (Economics). Before the Pandemic America was doing fine on a growth trend that stood for nearly a decade. As it stands now post pandemic, we are on a recovery stage from a Supply standpoint. Have you noticed any changes at the grocery store? Maybe Eggs, bacon and Gas prices increasing? If you have noticed any changes then guess what? You have an eye for INFLATION. Here's some raw numbers to give you an idea of what we're going through Gas is 56%, Bacon is up 13% and used Cars are up 30%. On average we're at about 5% inflation all around. Normally the economy function at about 2% inflation rate, which the feds hope to guide us back to once factors such as employment, economic spending and vaccination increases. 

Inflation is important because its directly tied to the cost of everyday living for you and I. This inflation is not forseen to be sustainable but one should adjust accordingly to the present day reality.

I'm a Realtor! If anyone didn't know that by now. We're seeing a lack of homes for sale on the market AKA better know as (Inventory). Many homes recieve a good amount of attention. Therefore prices are steadily increasing, since last year the Sacramento real estate market has increase substantially.

I agree with the Federal Reserve Jerome Powell statement: "The Housing Market is Strong", prices may stable out as economic factors adjust but demand hasn't shown any reconciliation of slowing down.

VIDEO SUMMARIZATION BELOW

https://youtu.be/qmjDZZoeGVw


Please comment below. The engagement will be appreciated.

Comments

Post a Comment

Popular posts from this blog

What is Equity in Real Estate?

-
Image
Equity is a term that is used in many facets of business such as Accounting, Shareholders positions, and Real Estate. We're going to focus on Equity as it pertains to Real Estate. First, let's unravel where Equity derives from. History shows that Equity as we know it derives back to Old French word Equite. It  originally meant the quality of being equal or fair, used mainly in the context when dealing with others, according to (etmology online)." In a way, this is similar to the description of Equity as pertains to homeownership. The market value of the home  minus how much is owed to the financial institution for the purchase of the home. About 14% of homes in Sacramento, California are purchased with CASH . And CASH is King. The more cash you can bring to make an offer on a home can heighten the chance you’ll  acquire the asset. Similar to how a business can go up and down in value so can the Real Estate market (Less volatile than the stock market). Many factors ...
Read more

What is a Mortgage?

-
Image
What is a Mortgage? A Mortgage is a loan that is used to finance a home from a Financial institution. Why are mortgages in place? Mortgages are in place to ensure that the financial institution will be repaid for the home loan. Mortgages are a security instrument used to hold the borrower accountable for the home loan. The title of the home will go to the bank until the mortgage is paid off. When borrowee has repaid mortgage the bank will issue a deed of reconveyance . Transferring the title to the homeowner. For example, Mark and Lisa just got married. They want to buy their First home, YAY! Together they have saved $12,250. Approximately, 3.5% of the total purchase price. The cost of the home is $337,750. The difference between the down payment and the total cost of the home is $337,750. This amount is the Mortgage. The couple will have to pay the financial institution back each month (principal) plus interest. Let's say the interest on the amount the bank loan...
Read more