Key Indication Series
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 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
Housing where affirmative action is proactively pursued protecting the housing rights of people of all races, nationalities, and religions. ...
Fee payable because of late payment. For example, a mortgagor is assessed a $30 late charge by the bank for not paying the mortgage payment when due. ...
A four-unit building with four tenants in a condominium type of ownership and management. ...
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Value that a speculator believes an investment will reach at some point in the future. ...
Substance or material used at the top of a chimney at the roof to inhibit the development of moisture and to protect the metal. ...
Loan service charge; each point equals 1% of the amount of the total mortgage loan, which must be paid up front when a home is purchased. It is a one-time, immediate charge that increases ...
Depressed, poorly kept locality that may include vacant businesses. It may be a high crime area. The people living in the area are typically poor and there may also be homeless people. ...
The term straight note in real estate is also known as a promissory note. A straight note is defined as a loan agreement that generally requires payments of interest only over the term of ...
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