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
The definition of option explains the term as something that can be chosen in spite of having multiple other alternatives. It could be an option for food, which shows a preference for one ...
U.S. law making it illegal to discriminate when giving credit based on factors such as race, religion, color, age, national origin. A lender must respond to credit applications within 30 ...
Tax-free exchange that allows a seller two years after escrow closes on his former principal personal residence to buy like-kind property and defer taxes. Profits from the sale of a ...
Government program of providing low interest rate mortgages to low-income qualified buyers. In the tandem program, the Federal National Mortgage Association (FNMA) purchases low interest ...
Way to determine the capitalization rate of income property for valuation purposes by weighting the rate of interest and source of financing in percentage terms. ...
Determination made concerning the motivation of a testator in making devises of the will. A will can be contested if it can be proved the testator did not have rational motives when ...
Statement made by a person that is not in writing. An example is an oral representation made by a real estate broker to a prospective buyer of property. ...
Measures looking at the past, current a future direction of the economy. They may have an impact on the real estate market. Each month government bodies, including the Federal Reserve ...
A lien which is secondary to a senior lien and cannot be paid until the senior lien is satisfied. ...
Have a question or comment?
We're here to help.