If you remember the movie Star Wars from 1977, then you may remember that the line “Stay on Target!” is directive, encouraging, and, perhaps, cautionary.

Directive to real estate

US real estate which is a “target” for investment is dependent on jobs growth trajectory which leads to household creation.

Total US nonfarm employment peaked at 138,365,000 persons in January 2008.

Total US nonfarm employment then declined to 129,700,000 persons in January 2010.

Total US nonfarm employment then climbed back to 138,497,000 in May 2014.

As of December 2014, total US nonfarm employment is below “on target” at 140,347,000 persons.

Encouraging to real estate

The US may be back “on target” (i.e. total nonfarm employment approximately 143,000,000 employed persons) by January 2016 albeit deflected by six years journey from where the US would have been in January 2010 had it not collided with the Death Star recession,

Cautionary to real estate

If the Federal Reserve raises interest rates in 2015 to “crush the rebellion with one swift stroke,” then the US may again be re-deflected from being “on target.”

May the Force be with you.