The real estate market may have come to the brink of collapse at the height of the Great Recession but it is now ready to bounce back thanks to improved conditions and pent-up demand.
Economist Dr. Lawrence Yun certainly thinks so. The VP of research at the National Association of Realtors recently spoke about the reasons why he is so upbeat on recovery in Baton Rouge. He pointed to the significant increase in population over the last few years. Last year, there were about 75 million homes sold across the country. This is figure is roughly equivalent to the sales back in the year 2000. The population in the US is 37 million more. All these indicate that there is a lot of room for growth.
This growth is expected to come sooner rather than later. After all, the country has recovered from the recession as early as 2011. GDP is not stellar at a mere 3% improvement but this should be viewed in context. We are still growing at a far better rate than most of Europe.
The unemployment rate should also be interpreted in the proper context. Only 60% of the population is currently employed which puts unemployment at nearly the same level as it was back during the recession. However, it would be erroneous to think that everyone has suddenly become desperate for jobs. Many of those without work right now have chosen to opt out of the job market and stay home. It's a personal decision for them, not an economically-driven one.
It should be noted, Dr. Yun says, that the recession hit various parts of the country in different levels of severity. Baton Rouge, for instance, was spared from much of the woes that plagued other places. The number of jobs here is 60,000 more than what was available back in 2000. The discrepancy will increase further at the end of 2015 as 15,000 more jobs are expected to be created around town.
5 Minute Real Estate Market Update - April 2015