4.3. SR 11-02-2015 - Laserfiche WebLink

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Regional Data -continued Economic Trends Interest rates for a typical 30-year residential mortgage are around 4-5%. Commercial rates are around 5-7%. Rates are expected to be relatively stable over the next year. The current state of the macro economy (international, national, state, etc.) is fair since its peak in 2006, with ongoing signs of stabilization. "The Great Recession" is considered to be over. However, recovery timing is uncertain, and could span several years. Some property types experienced significant decline, particularly special use, recreational, high-end and outlying development properties. Currently, most property types are experiencing relatively stable values. Certain market segments/areas are experiencing growth, particularly the multi-family residential market. Although well diversified, the TCMA and surrounding Minnesota economy is not immune to the recent soft/declining trends of the overall economy. Minnesota Index and U_S_ Index 17E1.0 165.0 160.0 � 155.0 150.0 145.0 140.0 135.0 -MN -tl,S_ 130.0 125.0 rn Source:Minnesota DEED Minnesota's index plunged along with the national index during the worst months of the recession but bottomed out earlier and dropped less than the national index. Minnesota's economy seems to be recovering at a similar rate as the national index. f • Economic The rerlional economic climate is boomina 5.0 5.3 21? 21.1 17.4 The regional economic climate is level 23.8 25.3 23.1 9.9 17.8 The regional economic climate is mode-ately positive 48.8 55.8 40.4 61.2 52.6 Tlieregiontal ec:onorniCclimaleis slagiidnl 10.0 3.2 1.9 0.7 1.5 The regional economic climate is weak 12.5 9.5 13.5 7.2 11.1 Source=CCIM Institute.NATIONAL ASSOCIATION OF REALTORS' 8 Nagell Appraisal&Consulting 1 952-544-8966 1 www.callnagell.com