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Macroeconomic Situation Remains Tough The “Shock And Awe” Stage Is Over; Most Financial Market and Economic Indicators Have Ceased Their Free-Fall. Economy’s Free-Fall Is Over but Little Impetus to Sustained Growth Yet Financial Markets Normalizing Source:: Maximus Advisors
Consumer: job declines, high unemployment, wage pressures, wealth loss, less access to credit.
Businesses: stabilized but low profitability, regulatory and fiscal uncertainty.
Exports: global weakness persists despite improvement in some large developing countries like China and Brazil.
Government: stimulus is having an impact but other initiatives – climate change, health care, deficit reduction, regulation – are increasing consumer and business uncertainty and raising specter of much higher taxes ahead, counteracting stimulus policies.
Source: Maximus Advisors 2
Unemployment Will Remain High for a While Macroeconomic Situation Remains Tough 3 3
Macroeconomic Situation Remains Tough Metro Economies Still Struggling Across the Nation, Past 3 Month Job Change Source:: Maximus Advisors Source: Maximus Advisors 4
Apartments: More Pain Ahead But Then a More Rapid Recovery than Other Segments 5 Apartment Fundamentals: More Pain; Faster Gain 5
Valuations Look to Generally Hit Bottom in 2010 but the Recovery Looks to Be a Slog 6 Outlook for Property Values 6
7 Apartment Market Dynamics Apartment Market Returns More Stable than Other Sectors
8 Apartment Market Dynamics Long-Run Apartment Returns Are Strong, Lower Risk Compared to Other Real Estate Asset Types
Multifamily Starts Now Sharply Lower, Completions Set to Plummet 9 Apartment Fundamentals: More Pain; Faster Gain 9