By Ken Andrews
Sacramento Real Estate business or for that matter any real estate in U.S. is interlinked with economy – local as well as national. You will remember that the economic downturn from the year 2006 caused all the woes for the entire nation and its people, particularly home owners. Financial Experts and analysts say that the remedy from the present gloom lies only if the economy is put back on its original track, where from it derailed bringing untold miseries to all the people.
For the last few years the economic recovery was elusive and only from the start of this year, and from the second quarter onwards, there are good signs appearing on the economic horizon. The national unemployment rate stood at 9.5 percent – somewhat high of course – in both June and July 2010. California more or less followed the same pattern and turned out similar figures.
Now the latest news from the economic field and employment factor are encouraging, which alleys the fear of the economy getting a double dip and we can burst out a sigh of relief. What are those good signs? See below:
Exports from California are increasing – in July the state fared well in exports and cut down imports whereby the trade deficit – a bad thing for a healthy economy – is shrinking. In July it is reported by U.S. Commerce Department that goods worth of $11.86 billion were exported to other countries – from $9.77 billion in July 2009 showing an increase of 21.4 percent. This is the ninth month in succession that California exports show year-over-year increase in exports. And this is the highest level of exports reported in the last two years.
California being the most-populated state of the country, its economic activities has a strong bearing on the national economy. So the figures of exports get importance – export of manufactured goods increased to 20.1 percent from same period last year; agricultural products as also non-manufactured products increased by 10.6 percent; and items previously imported were re-exported showing an increase of 32.1 percent.
Overall, the merchandise export of California in July represented 11.4 percent. Arising out of the increased exports activity, the trade deficit – that is difference between imports and exports – shrank by 42.8 million; a very good sign indeed.
On the unemployment front, it is reported that last week people signing for unemployment benefits were fewer by 27,000 numbers to reach the lowest level of 451,000 in the last two months.
All these put together will do immense good to real estate markets, including the capital city’s Sacramento Real Estate, where the activity of buying and selling Sacramento homes for sale will progress towards normalcy.