"Half full or empty?"
Most of us are generally optimistic or generally skeptical. We look at a glass as either being half full or half empty. For me it depends upon the contents of the glass. With the real estate market, I think it’s half full.
Two economic forecasts concerning the construction industry were released last week that demonstrates economists are also positive or negatively inclined. The UCLA Anderson Forecast reports the construction industry is going to loose 200,000 jobs this year. The construction sector’s loss will be so great as to cut the state’s employment gain by half of what they were last year.
You may recall the Anderson School of Business at UCLA has been predicting the demise of the real estate market since the boom started in 2000. They have been promoting the real estate bubble theory for the last two years. Their dire predictions have included that property values would fall 20 percent, massive job looses and high interest rates would lead to a recession.
On the same day that the UCLA economic forecast was released, the University of the Pacific released their economic findings and predictions for the construction industry. It looked at the same numbers as did UCLA but their findings were much rosier.
The University of the Pacific said that residential construction would not collapse. It would still continue to grow but at a slower pace than it has in the past. The senior economist at PU, Sean Smith, said that commercial construction would continue to expand and that the Sacramento Region would “lead the state in growth and jobs and personal income.”
Both economic reports recognized the housing industry was the leading economic engine driving growth for the past four years. Does our environment influence the way we look at life? Could two leading universities come up with two different economic predictions based upon their location?
The Ritz-Carlton thinks Northstar is a great place for their new 5-star, 172 room, $300 million new hotel. Ground breaking is scheduled for this summer with an opening in 2009. The developers East West Partners must be optimistic about our future.
Have a great weekend. I will be showing homes in Cool and Foresthill and Vicki will be working both days at one of our local wineries. Each year, the El Dorado County Vintners Association sponsors a Passport Weekend to promote El Dorado County wines. This year, 25 participating wineries will feature their food, music, wine and special art demonstrations. Local volunteers from all over the county will host nearly 2,000 attendees. It’s a fun event and the proceeds go to a worthy non-profit. Let’s all be positive about the weather and look for sunshine.
Two economic forecasts concerning the construction industry were released last week that demonstrates economists are also positive or negatively inclined. The UCLA Anderson Forecast reports the construction industry is going to loose 200,000 jobs this year. The construction sector’s loss will be so great as to cut the state’s employment gain by half of what they were last year.
You may recall the Anderson School of Business at UCLA has been predicting the demise of the real estate market since the boom started in 2000. They have been promoting the real estate bubble theory for the last two years. Their dire predictions have included that property values would fall 20 percent, massive job looses and high interest rates would lead to a recession.
On the same day that the UCLA economic forecast was released, the University of the Pacific released their economic findings and predictions for the construction industry. It looked at the same numbers as did UCLA but their findings were much rosier.
The University of the Pacific said that residential construction would not collapse. It would still continue to grow but at a slower pace than it has in the past. The senior economist at PU, Sean Smith, said that commercial construction would continue to expand and that the Sacramento Region would “lead the state in growth and jobs and personal income.”
Both economic reports recognized the housing industry was the leading economic engine driving growth for the past four years. Does our environment influence the way we look at life? Could two leading universities come up with two different economic predictions based upon their location?
The Ritz-Carlton thinks Northstar is a great place for their new 5-star, 172 room, $300 million new hotel. Ground breaking is scheduled for this summer with an opening in 2009. The developers East West Partners must be optimistic about our future.
Have a great weekend. I will be showing homes in Cool and Foresthill and Vicki will be working both days at one of our local wineries. Each year, the El Dorado County Vintners Association sponsors a Passport Weekend to promote El Dorado County wines. This year, 25 participating wineries will feature their food, music, wine and special art demonstrations. Local volunteers from all over the county will host nearly 2,000 attendees. It’s a fun event and the proceeds go to a worthy non-profit. Let’s all be positive about the weather and look for sunshine.
posted by Ken Calhoon at 7:45 AM
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