Good news! (Even for the depressed housing market!)

Although the past 3 years have been difficult for both housing and employment, some data suggests even good news in certain regions. 

Time for good news since the last 4 years or more it's been a lot of "Henny Penny" and the "sky is falling"! 

Note: Most of the data below is from the Wall Street Journal, circa late May and June 2011.

  1. US Workforce is to grow by 11% over the next 20 years. Better than Europe (Shrinking 5%) and even worse, Japan, contracting by 17%. There is a higher birth rate and have higher immigration, both positive for growth. 
  2. Household formation (new homes added via renting or buying) was 2 million a year in 2005. That crashed to 578K in 2008 according to Moody Analytics (and even shrank by almost 1m according to other data from Bureau of Labor) However it rose to 950K in 2010.  We should housing rebound in the next 2-4 years (Not AZ, FL, NV, MI or other super depressed places with absorbtion that could take decades).
  3. Affordability increasing. Already cheaper to own than rent in Chicago, Cleveland, Detroit and Orlando, FL.
  4. Employment is growing in certain regions (where buying private loans make more sense than those areas with declining employment) Dallas, TX is one such region that added 84,000 jobs in the past 12 months. 
  5. Housing prices rising excluding distressed sales in 17 states! They include favorites of mine such as Alaska, Hawaii, Texas, Tennessee, North and South Carolina, Virginia and Pennsylvania. 
  6. Coffee and Red wine (in moderation) are good for your health!

Enough good news. Not difficult to find problems these days but the above is encouraging since the future will look a lot different than most think of today!


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