At a recent gathering of real estate professionals, Chris Thonberg of Beacon Economics expressed his thoughts about the current state of the Orange County real estate market. He went into some detail about the economic factors which are improving to cause the stabilization and upturn of the real estate market.
Below is a brief excerpt from his presentation.
You may read the Jeff Collins take on that conference by visiting the link at the bottom of this post.
But Thursday, Thornberg said, “I’m probably the most optimistic that I’ve been about the economy in the last eight years.”
Thornberg cited a host of indicators pointing to improvement. Durable goods orders, industrial production, imports, exports, rail car loadings and hotel occupancy rates all are up. Home and consumer delinquency rates are down.
Commercial real estate vacancies have peaked and are starting to come down, he said.
Personal income in California is up 6.5 percent. Business inventories declined just as consumer demand took off, which will spur production. Hiring, a lagging indicator, is starting to heat up, and “that’s going to continue,” he said.
The threat from the Euro debt crisis is overblown, he maintained. At worst, it will cause a mild recession in Europe, which won’t be enough to bring down the world economy.
Please let me know your thoughts.