From the Sacramento Bee (By TALI ARBEL - AP Business Writer)
NEW YORK -- A private research group's forecast of economic activity rose in May by the largest amount in more than five years, the latest sign that the recession is easing.
The Conference Board said Thursday that its index of leading economic indicators - designed to forecast activity in the next three to six months - rose 1.2 percent, the biggest gain since March 2004. Economists surveyed by Thomson Reuters expected a 0.9 percent increase in May. The April reading was revised to a 1.1 percent gain from 1 percent, the first back-to-back increases since 2006.
The New York-based group also said activity in the six-month period through May also rose 1.2 percent - the first time that measure has grown since April 2007.
"The recession is losing steam," said Conference Board economist Ken Goldstein. "If these trends continue, expect a slow recovery beginning before the end of the year."
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25 June 2009
California Housing Market Shows Pockets of Recovery
From the Wall Street Journal:
Prices Have Dropped Far Enough to Lure Buyers in a Trend Also Showing Up in Other Parts of the Country
SAN JOSE, Calif. -- A home-sales revival that began last year in some of California's cheaper inland areas has begun to spread to several more expensive coastal areas, another hint that devastated real-estate markets in the state -- and other parts of the country -- may see less grim days ahead.
Homes are selling briskly again in the lower end of the market in Santa Clara County, just south of San Francisco, with prospective buyers making multiple offers and bidding well above asking prices. The median sales price of a single-family home in May was $445,000 in the county, up 5.7% from February, when prices stopped dropping.
Click here for the entire article
Prices Have Dropped Far Enough to Lure Buyers in a Trend Also Showing Up in Other Parts of the Country
SAN JOSE, Calif. -- A home-sales revival that began last year in some of California's cheaper inland areas has begun to spread to several more expensive coastal areas, another hint that devastated real-estate markets in the state -- and other parts of the country -- may see less grim days ahead.
Homes are selling briskly again in the lower end of the market in Santa Clara County, just south of San Francisco, with prospective buyers making multiple offers and bidding well above asking prices. The median sales price of a single-family home in May was $445,000 in the county, up 5.7% from February, when prices stopped dropping.
Click here for the entire article
12 June 2009
If you like charts and graphs, you'll love this...
From USA Today, a collection of graphs comparing the trends of several key economic indicators. Click on the indicator to the right to see its trend.
Click here for the graphs and article
Click here for the graphs and article
10 June 2009
Fast Facts for June 2009
Calif. median home price - April 09: $256,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 09: Santa Barbara So. Coast $840,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 09: High Desert $106,530 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)
Mortgage rates - week ending 6/4/09 30-yr. fixed: 5.29% Fees/points: 0.7% 15-yr. fixed: 4.79% Fees/points: 0.7% 1-yr. adjustable: 4.81% Fees/points: 0.6% (Source: Freddie Mac)
Calif. highest median home price by C.A.R. region April 09: Santa Barbara So. Coast $840,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 09: High Desert $106,530 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)
Mortgage rates - week ending 6/4/09 30-yr. fixed: 5.29% Fees/points: 0.7% 15-yr. fixed: 4.79% Fees/points: 0.7% 1-yr. adjustable: 4.81% Fees/points: 0.6% (Source: Freddie Mac)
Own a small business?
SBA launches program to assist struggling small businesses
Small businesses, including real estate brokerages, suffering financial hardship as a result of the slow economy may be eligible to receive temporary relief to keep their doors open and get their cash flow back on track through to a new loan program from the federal government’s Small Business Administration (SBA).
Beginning June 15, the SBA will start guaranteeing America’s Recovery Capital (ARC) deferred-payment loans of up to $35,000. The loans will be available to established, viable, for-profit small businesses, as defined, that need short-term help to make their principal and interest payments on existing qualifying debt. ARC loans are interest free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.
ARC loans will be disbursed within a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt, including mortgages; term and revolving lines of credit; capital leases; credit card obligations; and notes payable to vendors, suppliers and utilities. Repayment will not begin until 12 months after the final disbursement. Borrowers don’t have to pay interest on ARC loans. After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years.
Small businesses, including real estate brokerages, suffering financial hardship as a result of the slow economy may be eligible to receive temporary relief to keep their doors open and get their cash flow back on track through to a new loan program from the federal government’s Small Business Administration (SBA).
Beginning June 15, the SBA will start guaranteeing America’s Recovery Capital (ARC) deferred-payment loans of up to $35,000. The loans will be available to established, viable, for-profit small businesses, as defined, that need short-term help to make their principal and interest payments on existing qualifying debt. ARC loans are interest free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.
ARC loans will be disbursed within a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt, including mortgages; term and revolving lines of credit; capital leases; credit card obligations; and notes payable to vendors, suppliers and utilities. Repayment will not begin until 12 months after the final disbursement. Borrowers don’t have to pay interest on ARC loans. After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years.
09 June 2009
Pending home sales increase for third consecutive month
Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to a recent report from NAR. Its Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it stood at 87.5.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” said NAR Chief Economist Lawrence Yun. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” said NAR Chief Economist Lawrence Yun. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
New-home inventories continue to fall
The number of newly built single-family homes on the market declined to 297,000 units in April, their lowest level since May 2001, according to a recent report by the U.S. Dept. of Commerce. The pace of new-home sales, at a seasonally adjusted annual rate of 352,000 units, was nearly unchanged compared with the previous month.
“The fact that the new-homes inventory is now below the 300,000 mark shows that builders have made substantial progress in winnowing down their backlogs to a much more comfortable level,” said Joe Robson, chairman of the National Association of Home Builders (NAHB). April’s results mark two consecutive years of monthly declines in the number of unsold new homes.
Sales of newly built, single-family homes recorded a marginal 0.3 percent gain to 352,000 units in April compared with March, while the inventory of new homes for sale declined 4.2 percent to 297,000 units--a 10.1-month supply at the current sales pace.
“The fact that the new-homes inventory is now below the 300,000 mark shows that builders have made substantial progress in winnowing down their backlogs to a much more comfortable level,” said Joe Robson, chairman of the National Association of Home Builders (NAHB). April’s results mark two consecutive years of monthly declines in the number of unsold new homes.
Sales of newly built, single-family homes recorded a marginal 0.3 percent gain to 352,000 units in April compared with March, while the inventory of new homes for sale declined 4.2 percent to 297,000 units--a 10.1-month supply at the current sales pace.
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