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