Recently, I read an article in the New York Times (online edition) about five economic trends that we should be grateful for as we enter into 2015.
I know, I know…it’s crazy that 2014 is already over and we are headed into a new year, but it sure has been a good one!!
Here are the five positive economic trends the article discussed.
1. Cheaper Gas Prices – This holiday season has been a great time to take a road trip due to the cheaper gas prices. No one knows for sure how long this will last, but I’m pretty sure everyone is taking advantage while they can!
2. Job Growth – Since 2010, job growth has been improving, but in 2014 it has taken a giant leap.
The best news is that according to the Forbes Best City for Job Growth List, Austin ranks No. 1!! We have certainly had a better economic recovery than most cities since the recession, but to be No. 1 is above and beyond what we ever expected!!
3. More Americans Are Leaving Jobs Voluntarily – This economic trend bodes well with the confidence Americans have that they can find a better job and that there are actually jobs on the market to be had. In past years, people have been much more concerned with layoffs than they are today and that is a great trend to experience.
4. Home Prices Are Rising More Slowly – According to the article, “The Case-Shiller index of home prices in 20 major metropolitan areas was up 4.9 percent in the 12 months ended in September (2014), compared with more than 13 percent in 2013.” A sharp increase of home prices can cause real estate bubbles, which in effect then cause many problems in the housing market because of inflated prices.
Austin, specifically, will be interesting to watch in 2015 as it continues to deal with all areas of development, rising housing prices, population growth, its aging infrastructure and the traffic issues it is currently facing.
5. American Households Appear to Be Done Reducing Their Debt – The article said, “Across the major categories of debt, including mortgages, credit cards and the like, debt levels are now rising again. Not at the kind of rapid rates that would signal a buildup of major new risks, but decisively upward.”
Debt may not sound like a good thing to many, but for the economy it means that people are spending and have confidence that they will be able to pay off any debt they incur. Of course, I would always advise to spend wisely…no matter what kind of economy we are facing.
I hope this information will help you set your goals for 2015 and beyond! Happy New Year!!!
If you or someone you know is interested in buying or selling real estate in the Austin area, please contact Mary Lynne Gibbs at 512.431.2403 or firstname.lastname@example.org. It would be an honor to earn your business!
Photo courtesy of “Pumping Fuel” by Michelle Meiklejohn/FreeDigitalPhotos.net