Similar to the several years, U.S. economic growth was sluggish to begin 2016. During January and early February, fears of an economic slowdown increased, as leading U.S. stock indices fell considerably, due largely to continued economic weakness in China, the strengthening dollar, falling oil and commodity prices, which triggered more cutbacks in the U.S. energy sector. These concerns eased somewhat during the latter part of the quarter, as the dollar’s value began to decline, the price of crude oil rebounded and China undertook additional steps to steady its economy, which provided support for the rally of the stock market.
The advance estimate of 1Q16 GDP showed that the U.S. economy grew at its slowest pace in two years. primarily weakened by sluggish consumer spending and tepid business investment. As consumers continued to boost saving rates, retail sales declined in March and small business optimism and industrial production also fell during the month.
Despite these headwinds, numerous economic indicators were encouraging. Labour market conditions remained favourable, as 628,000 jobs were created during 1Q16 and the unemployment rate remained low. Per The Conference Board, consumer confidence rebounded in March. Housing market fundamentals were mostly positive, as builder sentiment remained strong and price appreciation continued. Total construction spending increased in March to near its pre-recession peak set in late 2007. There was modest improvement in factory sector activity, as growth in the new orders escalated, production expanded and the ISM headline figure indicated growth for the first time in six months.
At its April Federal Open Market Committee meeting, the Federal Reserve (“Fed”) decided for the third consecutive meeting to leave its federal funds rate unchanged at 0,25%, citing concerns regarding low inflation and a moderation in spending, as well as continued soft spots in business investment and trade.
All of which are good reasons to invest in The United States of America and more specifically Dallas, Texas. We break it down and focus on 6 solid reasons why you should invest in the U.S.
- In March, new U.S. home sales fell for the third consecutive month, posting a 1.5% decline to a seasonally adjusted annualised rate of 511,000 units. Sales decreased 23.6% in the West region, offsetting gains of 18.5% and 5.0% in the Midwest and South regions, respectively. Sales were flat in the Northeast region.
- According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased slightly in March to 3.69%. The average commitment rate for all of 2015 was 3.85%.
- As per RealtyTrac, foreclosure filings declined 4.0% from the prior quarter and 8.0% YoY to the lowest quarterly total since 4Q06. It was estimated that 38.0% of metropolitan areas with a population of at least 200,000 posted foreclosure activity below average pre-recession level during 1Q16. States with the highest foreclosure rate were Maryland, New Jersey and Nevada.
- The S&P/Case-Shiller U.S. National Home Price Index recorded a 5.3% annual gain in February, reflecting no change from the prior month. The largest price appreciation was concentrated in western cities such as Portland, Seattle and Denver. Depsite healthy annual gains, price appreciation began to slow within the 10-and-20-City Composite indices.
- The CoreLogic Home Price Index showed that U.S. home prices increased 6.7% YoY in March. Home price growth is projected to increase 5.3% YoY from March 2016 to March 2017. States (in order) with the largest YoY percent growth (ranging between 8.2% and 13.0% were 1) Washington, 2) Oregon, 3) Colorado, 4) Florida and 5) New York. States (in order) with the smallest YoY percent growth, ranging from 0.7% to 1.7%, were 1) Maryland, 2) Connecticut, 3) Wyoming, 4) New Jersey and 5) Vermont.
- Lawrence Yun, NAR Chief Economist, stated, “The choppiness in sales activity so far this year is directly related to the unevenness in the rate of new listings coming onto the market to replace what is, for the most part, being sold rather quickly. Additionally, a segment of would-be buyers at the upper end of the market appear to have been spooked by January’s stock market correction.”
$5000 Towards Travel and Leisure Expenses.
Dallas is the place to invest in! join us on the upcoming Dallas Tour where we explore investment opportunities in the heart of Texas. Greystone Residential are offering $5000 towards travel and leisure expenses to every investor who purchases a property. Click on the banner below to register for the tour.