Bill Borden, Albert W. Niemi Jr. and Roger Tutterow Predictions 2015

Metro Atlanta

January 16th, 2015

by Bill Borden

On Jan. 12, the Atlanta Business Chronicle spoke to Albert W. Niemi Jr., dean of the Edwin L. Cox School of Business at Southern Methodist University and former dean of the Terry College of Business at The University of Georgia, to get his outlook on Georgia's economy in 2015. Niemi was scheduled to present his forecast at the 2015 Economic Forecast at the Cobb Energy Performing Arts Centre Jan. 14 and the Atlanta Athletic Club Jan. 15. Q: Where do you see real GDP in 2015? My forecast for 2015 for the U.S. is real GDP growth of 3.1 percent. And to put that in perspective, in 2012, 2013, and 2014 the average rate of growth has been about 2 percent. 2014 was 2.2, 2013 was 1.7, so we've had an economy growing at about half speed because during a normal recovery the economy grows at about 4 percent. That's why people talk about how do we get this economy back to 4 percent real growth because that's kind of the target in a recovery phase, which we've been in since July 2009. Three-point-one percent is a significant increase in the pace of growth compared to what we've seen in the recovery. My forecast for Georgia is 3.2 percent, so I have Georgia and the U.S. economy both having a significantly better year in 2015 than 2014.

 

 

On Thursday of this week Roger Tutterrow, professor of economics at Kennesaw State spoke to my Kiwanis and he agrees things are looking up on the housing front as Atlanta maintains steady growth.  Tutterrow believes that we are ready for an interest rate increase and in fact this will be healthily for the market.  New home starts are up but only back to about 20% of the pre bust numbers. 

I feel that as we build the developed low cost lots that were absorbed during the bust.  We will need new A & D projects that will be at a higher cost.  The final lot price will be higher forcing new home prices higher. This price increase will trickle down to resale homes as well.  If you are planning on moving or down sizing within the next 3 years, please call me today at High Caliber Realty.