Beacham & Company participated in the annual conference for Leading Real Estate Companies of the World (LeadingRE) at the Fontainebleau Hotel in March. The conference and its participants represented 25 percent of all real estate business done in the United States in 2016.
Among the conference’s many nationally known speakers was Marci Rossell, formally chief economist for CNBC and now chief economist for LeadingRE. Rossell said three major factors will influence real estate and the U.S. economy over the next 3-5 years:
• India will become the new world economic growth leader and the most populous country by 2020. The world’s economies are more interconnected than ever and must be considered when forming projections about our own economy including housing.
• The U.S. dollar surged 40% last year. A strong U.S. dollar often attracts foreign investors which in turn helps propel our economy through new investment including housing.
• A demographic “barbell” with Baby Boomers on one side and Millennials on the other will continue to create tension in everything from U.S. politics to housing. Millennials and Boomers are, in many cases, pursuing the same type of housing (albeit for different reasons) which is extending an unprecedented housing inventory shortage.
She also said the economic outlook for 2017 is looking better and better because of prospective fiscal stimulus in the form of tax cuts for individuals and corporations, deregulation, and possible infrastructure spending. She also said she expects the Federal Reserve interest rate to increase twice in 2017 but even after both increases the Fed’s monetary policy would still be considered “loose” and that we are just beginning to experience the economic benefits of a historically low Fed funds rate.
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Beacham & Company, REALTORS is Atlanta’s top-selling luxury real estate office. The firm was founded in 2006 by Glennis Beacham, one of Atlanta’s most celebrated real estate agents. The firm has 100 agents who average $7 million in sales per agent.