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
Also called investment property. Real property held by a business for investment potential or in order to earn income by leasing or letting it, rather than for its own use. ...
An interim or provisional court decree, which is not final and can be reversed or amended, normally issued to direct additional proceedings prior to issuing a final decree. For example, an ...
Tax term describing current and necessary business expenses. Ordinary and necessary business expenses do not include long-term capital losses. For example, the XYZ stationary store deducts ...
Individuals who are legally entitled to inherit money and property when someone dies. ...
Payment made by the tenant to the landlord for the right to use property, such as an apartment or office. ...
Method of valuing a property through examination and comparison of recent sales of comparable properties. ...
Maximum credit a prospective buyer may be given. An example is the maximum mortgage a prospective home buyer may receive from the bank. ...
You may have heard the term codicil in a conversation but might have yet to understand it entirely. What’s the codicil definition? “Codicil meaning” refers to a supplement ...
The annuity factor definition is the use of a financial method that shows the value, present or future, of an amount when it is multiplied by a periodic amount. The calculation of an ...
Have a question or comment?
We're here to help.