Last Updated on August 30, 2022
As we each celebrate the New Year, there are economic signs that show we are looking at an exciting 2015 …
1) New jobs increased.
- 2.65 million US jobs were added during the first 11 months of 2014 – the most in a one-year time period since 1999 – and more good news is expected with the December report.
- Unemployment dipped to 5.8%, down from 6.7%, and continues to improve in the Carolinas.
- Wage growth has been modest, but more people have jobs, which means our economy has stronger spending this year.
2) Stocks surged.
- The Stock Market climbed 13% in 2014, hitting record highs 50 times.
- If you bought the index at the market bottom in March 2009, you have basically tripled your money. Another reason to always think of saving and contributing to an investment plan for your long-term strategy.
3) Oil prices plunged.
- Worldwide production remained steady in 2014, while some economies like Europe and Asia saw demand for oil decrease.
- Lower oil prices will hurt those economies that produce oil, but help most economies, especially the consumer’s pocketbook.
- Falling gas prices resemble a tax cut, which generates savings and spending. Will this be the key for the Fed to start raising interest rates this year?
4) Car sales increased.
- Auto sales were up 6% with approximately 16.5 million cars sold in 2014.
- This is the best sales pace since 2006.
5) Interest rates decreased.
- Even as the 2014 economy strengthened, interest rates have not increased.
- The 30-year mortgage interest rate averages 3.83%, down from 4.5% a year ago, so home affordability remains at an all-time high. It’s becoming easier to borrow again.
Our recent trends continue to show a strengthening economy, rebounding from a recession that has taken us longer to recover from than any other recession in history. This is such exciting news for the Carolinas and one of the reasons the state of North Carolina has increased in population to #9 in the United States!
If a new home is in your 2015 plans, please contact an Allen Tate agent near you and let us help you achieve the dream of homeownership this New Year.