Cautiously Optimistic Outlook For Economy
Amidst all of the doom and gloom there are some positive prediction for our economy, especially in housing and some job fields.
Speaking to the Monmouth Ocean Development Council on Friday, TD senior economist James Marple had a cautiously optimistic approach towards the economy. He notes while recovery is still slower than many would like, there are positive signs for the future.
Housing, which has long been a litmus test towards the economy, is expected to have some bounce-back according to Marple, because for the first time since demand is finally catching up.
“We are starting to see the housing market start to recover, home prices are starting to rise, and household wealth is starting to rebound.”
Much of the demand for housing Marple believes can be attributed to the severe decline of new home construction.
“We’ve under built and underinvested for so long that now we really have to see prices go up.”
New Jersey was one of the states affected hardest by the “housing bubble”, in no small part due to the Garden State’s high home prices which plummeted on average of thirty percent during the recession. Marple says prices won’t rise to pre-recession values but enough to strike a balance for buyers and sellers.
“Even just growing in line with income would be a very different situation than we’ve had over the last couple of years.”
To coincide with the increased demand in housing, Marple foresees the construction sector to get a boost. Additionally the professional services industry, healthcare, and finance are all fields he foresees to have a boost in the near future to meet demand.
He is also optimistic about domestic manufacturing, which has become competitive in recent years during the recession in the US and Europe.
“American manufacturers have become so much more competitive relative to their international peers that wage growth in competing places like China has outpaced what it’s been in North America and New Jersey.”