The US News has begun reporting positive economical trends for the end of 2013 through 2015. Construction industry growth that will result in hundreds of thousands of new jobs as well as an expected decline in prices of energy fuel costs translates into very encouraging prospects for typical U.S. Consumers, as well as for high end shoppers.
Based on an October 17, 2013 Press Release, New York, the New York Building Congress forecasts that New York Construction spending will top $30 Billion per year now through 2015. At a fourteen per cent increase from 2012, this report estimates 2013 spending to reach $31.5 Billion. Building Congress President, Richard T. Anderson, stated “Just five years after the worst turn down since the Great Depression, the City finds itself on the brink of yet another building boom. New York City is once again demonstrating its remarkable resiliency.”
In terms of residential markets, the construction spending doubled between 2009 and 2012. Based on recent financial studies expenditures will again double between 2013 and 2015. Trends indicate that while government spending on construction in New York will continue to decline through 2015, the private sector will experience a dramatic increase through 2015. Even factoring the effects of recession, numbers for 2015 at 37.0 Billion, will be directly in line with final figures at the height of the new “economic building boom”.
This forecast leads economists to anticipate high growth figures for new housing developments. New school building projects will be on the rise creating more new jobs locally. New construction jobs for 2013 increase to 4,200, up to 199,000 and in 2014, 123,400 construction jobs planned. Between this new data and the beginning Trend of lowering fuel costs reported this week (due to a backlog generated during third quarter 2013), there will be money to spend and real income growth ahead for the U.S. Consumer. (“Jobs” – refer to contracts, each company awarded a job employees several hundreds of workers.)
“There is nothing but good news in this report for the outlook in the U.S. Economy. The decline in petroleum prices is a significant plus for U.S. consumer real income growth,” said analysts from RDQ Economics. ECONOMIC REPORT Archives Email – alerts, Nov. 15, 2013, 10:38 a.m. EST, “New York manufacturing index turns negative, means retail fuel prices poised for decline.”
Gia Elika, is a Premier Real Estate Broker and principle founder of “Elika Real Estate“, servicing Manhattan and New York City area luxury apartments and townhouses. Mr. Eika is optimistic about recent financial studies and the latest projected building reports. “It appears earlier marketing prospects have substantially firmed up since first glimpses in July, 2013. Local real-estate industry is gearing up for a new high in sales and rental activity from late 2013 through 2015”, Mr. Elika commented.
On November 8, 2013, in a video interview by Bloomberg TV, Branden Williams and Rayni Romito, Voted #7 Top Real Estate sellers by Wall Street Journal. “Williams and Romito Luxury Homes”, over $1 Billion(USD) Real Estate sales in 8-1/2 years. They are located in New York, Los Angeles and Miami. The market currently is at a cash only level, practically no mortgages or loans. The Market is described as a “very quick” sellers market, low quantity of homes available, multiple offers on every home, lots of cash buyers and foreign cash buyers.
“Most clients we have right now are extremely demanding, wanting what they want, immediately, no excuses”, Branden Williams explained. “The winning bidder of a multi-million dollar property often closes the deal, then turns around and immediately offers it back to the losing bidder at a $5,000,000.00 to $7,000,000.00(USD) mark up.” Current prices for High-End Luxury Properties in Los Angeles – $2,000 to $4,000.(USD) per square foot; in New York – $5,000 to $10,000.(USD) per square foot. In Los Angeles this will buy a large square footage house, large backyard, beautiful mountain or ocean views and 345 days of sunshine. In New York you will get a spacious luxury apartment overlooking the New York City skyline with everything typically upscale in New York City living. Branden and Rayni just closed Escrow on a $40,000,000.00(USD) sale in Hollywood Hills, CA. This property is land only, 3-1/2 acres, and needs building development.
Indicators are predicting the U.S. has begun a financial up-swing and most predictions are firm. The 2013-2015 Outlook incorporates reviews of private construction data, public capital budgets with City, State and Federal planning documents.