Tuesday, January 24, 2017

As Unemployment Rates Decrease, Inflation Potential Rises


Based in Silicon Valley, Ed Vergara serves as Marcus & Millichap’s vice president of investments and provides commercial and multi family residential brokerage solutions. Ed Vergara undertakes complex negotiations for transactions that take up to six months to complete and spearheads the investment sales process. His firm provides a host of resources on its website, including information on market trends and related economic news. 

A recent article examines inflation pressure fears, given the fact that key unemployment rates have decreased in recent months and hiring has kept to a sustained upward trajectory. In October alone, 161,000 positions were added and wages rose significantly, signaling that economic growth trends appear steady. A benchmark interest rate increase by the Federal Reserve is being discussed by financial analysts. 

These trends may impact prices in early 2017 and beyond, as inflation becomes an issue again and rising prices eat into workers’ paychecks. In the real estate sphere, the growth cycle means that more newly formed households are looking to buy and are only held back by a limited supply of entry-level homes. New construction starts suggest that this issue should be rectified within the coming year.

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