Broad gains across an array of local and national factors in December pushed the University of San Diego Burnham-Moores Center for Real Estate’s Index of Leading Economic Indicators to its highest level since August 2006.
The index’s 0.7 percent increase in December was its largest since November 2015.
Although it still foresees slower growth in 2017 than in 2016, the center welcomed strong improvement in consumer confidence and national economic conditions. It noted more moderate advances in local building permits, unemployment claims, stock prices and help-wanted advertising.
“The strength and breadth of the increase was impressive and may eventually lead to a readjustment of the outlook for the local economy,” the center said in an update released Feb. 7.
It sounded two cautionary notes: expectations for increasing interest rates, which could hurt the local housing market, and potential U.S. trade wars with China and Mexico.