Tuesday, June 22, 2021

Economic State of America

 Hi, first and foremost thank you for taking the time to trust me to deliver information that I believe can be valuable to us all. 

Coming out of the Pandemic I've been looking out for information that can help guide our day to day choices and investment decisions. One of the most informative finding is from the Federal Reserve. For those of us who don't know what the feds do I can sum it up to this: make sure that the economy of America is Healthy & Viable.

The Feds have two Mandates: Maximum employment and Stable prices of goods, commodities and services (Economics). Before the Pandemic America was doing fine on a growth trend that stood for nearly a decade. As it stands now post pandemic, we are on a recovery stage from a Supply standpoint. Have you noticed any changes at the grocery store? Maybe Eggs, bacon and Gas prices increasing? If you have noticed any changes then guess what? You have an eye for INFLATION. Here's some raw numbers to give you an idea of what we're going through Gas is 56%, Bacon is up 13% and used Cars are up 30%. On average we're at about 5% inflation all around. Normally the economy function at about 2% inflation rate, which the feds hope to guide us back to once factors such as employment, economic spending and vaccination increases. 

Inflation is important because its directly tied to the cost of everyday living for you and I. This inflation is not forseen to be sustainable but one should adjust accordingly to the present day reality.

I'm a Realtor! If anyone didn't know that by now. We're seeing a lack of homes for sale on the market AKA better know as (Inventory). Many homes recieve a good amount of attention. Therefore prices are steadily increasing, since last year the Sacramento real estate market has increase substantially.

I agree with the Federal Reserve Jerome Powell statement: "The Housing Market is Strong", prices may stable out as economic factors adjust but demand hasn't shown any reconciliation of slowing down.

VIDEO SUMMARIZATION BELOW

https://youtu.be/qmjDZZoeGVw


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