Sunny Days Forecasted for US Economy

Speaking to more than 50 members of RELA Tuesday morning, Glassman said that--in terms of the broader economic picture--he feels the country is going to like what it is unfolding now. And other economists agree with him, he said. "We all pretty much have the same of point view, " Glassman contended. "There is a lot of optimism on the part of economists."

The sunny outlook is stretching out globally, as well. What makes economists feel so optimistic is that everyone--on an international level--is lining up the same way, he added.

But what does this mean for the real estate industry? "I imagine that a lot of folks in real estate associate national gloom with real estate boom. If the economy is getting better, then it is the end of real estate," Glassman explained. "But I think that is a mistake. In my opinion, if there is no inflation issue it is a very positive backdrop for real estate, and that is what we are looking at." Specifically, inflation is stabilizing around 1%, he said.

"Thinking ahead, it is not over. I don't worry about housing. I don't worry about real estate," he added. "Real estate had a remarkable period and some may think of it as a payback for the 100 years of a roller coaster ride."

According to Glassman, with the exception of the commercial construction industry, real estate will not benefit from the upswing in the US economy as much as other sectors, but he has no fear for the industry as a whole.

Specifically, Glassman sees productivity ticking up, and although economists do not know the whole picture for the third quarter yet, things are looking very good, he said. Consumer demand accelerated in the spring and the business sector has been a little slow to react but it is just a matter of time before it begins to follow suit.

On the employment front, he explained that job growth comes as the GDP grows faster than 3% and he believes this is happening right now. In addition, he said, by Thanksgiving we may see some positive news on the hiring front. "I think we are now on our way," Glassman said.

"Around the world, the US is leading this revival," he added.

And one sector that is taking off across the world is technology, he said. The previous slowdown has been heavily concentrated in the business sector--which is understandable according to Glassman because of the market crash, accounting scandals, terrorist threats and the war in Iraq. However, technology spending is turning this around, he added.

For example, he pointed out that Intel and IBM are experiencing a rapid pace in technology, making it more affordable to businesses. This in turn is making companies more productive, and the more productive companies are the more the workers benefit. "Productivity raises the living standard of the working American," he added.