Fourth Quarter GDP Hit 3.0% !
The Gross Domestic Product (GDP), the all-encompassing measure of economic activity came in at 3.0% for the fourth quarter of 2011. This shows a substantial increase in the economic activity in the U.S.
As a whole for 2011 the GDP expanded by 1.7%. The long-term average for the GDP is 3.0%.
It should be noted that the GDP is a lagging indicator of what has happened several months back, but you can see on the graph below that there is consistent growth occurring. The first quarter GDP for 2012 is projected to come in between 1.5% – 2.0%. This is due in large part to reduction in government spending and businesses that were running light on inventory may have accumulated inventory ahead of sales.
In separate, but related news, mortgage applications to buy a home rose 8% in the past week. This data is consistent with other improving housing metrics. In addition, it is important to note, that approximately 30% of all home purchases have been all cash, thereby completely bypassing the mortgage process.
If you are thinking of buying or selling, it is important to talk to a real estate professional. Real estate is a very local matter. A real estate professional can give you the information you need to make an informed decision.
As always, if I can help you with any of your real estate needs, or simply to answer any questions you may have, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.