Economic Indicators
Measures looking at the past , current an future direction of the economy. They may have an impact on the real estate market. Each month government bodies, including the Federal reserve System, and several economic institutions publish economic indicators. These consist of the following general categories:
- Measures of general economic performance, including gross domestic product (GDP), personal income, capital expenditures, corporate earnings, and inventories.
- Price indices measure the inflation rate. The consumer Price Index (CPI), a well-known inflation measure, is used as the cost-of-living index, which is related to employment contracts and social security. The Producer Price Index (PPI) monitors raw materials and semi-finished goods and measure prices at the early stage of the distribution cycle. It reflects changes in the general price level, or the CPI, before they actually occur. The GDP Implicit Deflator is another index of inflation that is used to isolate price changes in GNP calculation from real changes in economic activity.
- Measures labor market conditions and signals conditions in employment such as the unemployment rate, average workweek in manufacturing, applications for initial jobless claims and hourly salary rates.
- Money and credit market indicators include the money supply, consumer credit, the Dow Jones industrial Average(DJIA) and the Treasury bill rate.
- Measures for major product markets that apply to segments of the economy such as housing, retail sales, steel, and automobile. Examples include housing starts, construction permits, auto sales, and retail sales.
- economic indicators show a home buyer or a real estate investor something about national and local economic conditions, Industry trends are also revealed. see also index of leading economic indicators; lagging indicators.
Popular Real Estate Terms
Property interest a person has that is presently possessed by another. Upon the termination of the possession, the property reverts to the grantor. ...
Haven’t you ever paid a bill a few days after the due date? It happened to all of us, not necessarily because we didn’t have the money, but because we simply forgot about it. A ...
Construction of commercial property in a manner that enables each lessee or tenant to have access to the main strip or thoroughfare running through the property. For example, this mode of ...
The capital expenditure definition is an evaluation method of investments that a company of any kind, including real estate developments, makes to maintain or upgrade tangible assets. These ...
Mortgagor's signed statement that the stated remaining balance of a mortgage is correct and it is a property lien. This prevents a mortgagor from later stating the facts were ...
Portion of a deed that states the act and date of the transfer of the property. ...
An administrator appointed by the government or the courts to administer the laws relating to a government agency or court. A commissioner is a part of a government or court commission. ...
An agreement by which the owner of property (the lender) and a borrower agree to let the borrower use the property for a particular time period and in return the borrower will pay the ...
The lessee becomes a lessor by subletting the property to a third party. Typically, the sandwich leaseholder does not own or use the property. ...
Have a question or comment?
We're here to help.