Tuesday, September 12, 2006
How important is real estate?
On the way into work, I heard David Wessel, Deputy Washington Bureau Chief of the Wall Street Journal talk about housing on NPR.
He noted prices are falling or not going up, after a few years of +/- 12% increases.
The open question is if this causes a recession next year, -- Wessel doesn't think so.
He the noted the importance of housing on the economy by stating the housing industry is as big as the auto industry. 1 million people work building homes he noted.
Add another million that sell homes.
Plus, housing is important to consumers. Why> More than 2/3 of all Americans own a home. Less than half of all Americans own stocks or mutual funds.
Indeed, US consumers have more than 11 trillion in equity in their homes, more than the value of the stock market.
Consumers -- 40million search for real estate information each year.
And professionals in the home building, home selling, fiancing and retailing (home improvment, furniture, pools, etc) and advertising markets are equally interested in real estate.
Wessel noted, What happens in housing affects how people feel, and affects the economy.
All in all, real estate is a big impact vertical, -- highly personal, and you come to it time and time again in your lifetime. From renting a college apartment, moving, upgrading, and of course seeing what the nieghbor's paid -- all very mobile activities.
He noted prices are falling or not going up, after a few years of +/- 12% increases.
The open question is if this causes a recession next year, -- Wessel doesn't think so.
He the noted the importance of housing on the economy by stating the housing industry is as big as the auto industry. 1 million people work building homes he noted.
Add another million that sell homes.
Plus, housing is important to consumers. Why> More than 2/3 of all Americans own a home. Less than half of all Americans own stocks or mutual funds.
Indeed, US consumers have more than 11 trillion in equity in their homes, more than the value of the stock market.
Consumers -- 40million search for real estate information each year.
And professionals in the home building, home selling, fiancing and retailing (home improvment, furniture, pools, etc) and advertising markets are equally interested in real estate.
Wessel noted, What happens in housing affects how people feel, and affects the economy.
All in all, real estate is a big impact vertical, -- highly personal, and you come to it time and time again in your lifetime. From renting a college apartment, moving, upgrading, and of course seeing what the nieghbor's paid -- all very mobile activities.
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