Never has the old adage “The only thing that is constant is change” been more true now than it is today! Nationally and locally we are faced with uncertainty, and there are a few things to take into consideration for this upcoming year:
The figures recently released reveal an unwelcome regression in national job growth. With the exception of the San Francisco Bay Area and DC area( which are enjoying growth in jobs and income) most other metro areas are stagnant or simply moving downward when it comes to things like median income. Companies are holding onto the cash, freezing job growth and publicizing mass layoffs. In addition, the changes to healthcare plays a huge role in how companies are negatively reacting.
The upward rise of home appreciation will continue to drive current qualified buyers out of the market. Inventory will increase as the bank-owned properties (REO) are suddenly released on the market. The massive backlog of foreclosures and stalled short sales are also sure to have an impact. There is a national shift towards “rightsizing” or otherwise buying a home that fits an individuals needs and budget! This large trend is being adapted across all generations and creeds, making the return to the simpler more experiential life a new trend for 2014.
The market’s instability and problems have mega investors like Warren Buffet dropping stocks. They are watching the Dow to determine the pulse of the market. The Dow is comprised of 30 of the nearly 15,000 public companies–not the best sampling. These companies have limited revenue growth and they are leaning on continued, now-detrimental cuts to cost.
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