Positive News: Existing-home sales INCREASED 10.3 percent in November in the western U.S. (NAR, see more below)
More Positive News: Despite all you hear in the news, we are NOT in a Recession right now! No matter how it feels like, a Recession is defined by 2 consecutive quarters of negative growth, as measured by the country’s Gross Domestic Product (GDP). The last two available quarters the GDP grew by 3.8% in the 2nd quarter of 2007 and 4.9% in the 3rd quarter. Economists expect GDP for the quarter that just ended to be about 2%. I know this sounds technical, but it refutes many of the pundits you hear and see. (KNX-AM, 1/5/2008)
Economics News: Consumer confidence up slightly, job growth stalls, and unemployment rises. These numbers make it more likely that the Federal Reserve will once again cut interest rates when they meet later this month. (CNNMoney, 1/4, CAR 1/2)
Sales of new, single-family homes declined 9.0 percent in November 2007 according to new data from the U.S. Census Bureau and the Dept. of Housing and Urban Development. (CAR, 1/2)
But, Existing-home sales rose slightly in November, indicating a stabilization in housing in the wake of mortgage disruptions earlier this year, according to the National Association of REALTORS®. In the West, home sales increased 10.3 percent to a level of 960,000, but are 25 percent below a year ago. Median price: $325,800, which is 6.8 percent lower than November 2006. (NAR, 12/31)
California Builders state the worst is over: California Building Industry Association is predicting that the state's housing slump is near bottom and business will rise steadily. (SF Chronicle, 1/4)
Bush Advisor states that Housing Slump will end by mid-year (CNBC, 1/6)
Lastly, comparing foreign housing markets, as we did in prior weeks. As the Fed has recently decreased the benchmark interest rates, Australia’s central bank has raised its benchmark interest rate to an 11-year high. This has impacted their homebuilding market. In England, U.K. mortgage approvals fell to a three-year low in November, a sign demand from homebuyers is waning as banks provide less access to credit. Manhattan prices are “still crazy” (CNNMoney 1/6, Bloomberg, 1/4)
January’s Newsletter, which will be emailed Monday morning to subscribers, will feature 3 signs of predatory lending and learn the pros and cons of buying in today’s market. That along with the FAQ on how to decrease your property tax bill (legally!) this year and a summary of the housing statistics in the Tri-Valley area of Northern Los Angeles County in the Newsletter. If you wish to subscribe, please send me an email: changhomes@gmail.com. It is free of charge.
Next week's Blog will start the first in a series of Tax Tips! Have a housing-related tax question? Send it to changhomes@gmail.com to have it answered in the series by a tax professional. You might get a $25 discount on your tax return this year from H&R Block.
One of my New Years Resolutions is to keep this blog informative, yet short and sweet. How did I do to start the year off? Send your responses to changhomes@gmail.com.
Sources: National Association of REALTORS, California Association of REALTORS, CNNMoney.com, Bloomberg, CNBC, San Francisco Chronicle, KNX-AM
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment