For 3 straight months, existing home sales have been up. A very good sign that we are moving forward to get ourselves out of the housing slump that we have been in. Sales went up by 3.6% in June for a total of 4.89 million units being sold during the month. The median and average sales price of home has gone up, though still down, 15.4 and 11.8 percent respectively.
So what does all of this data show? It tells us that with all of these “Distressed Sales” are getting people back into the market. Whether it be purchasing a short sale or a foreclosure, individuals are buying Read the rest of this entry »
Reports show that housing starts have risen 3.6 percent in June. This followed a 17.3 rise the month before. This was caused by single-family starts, which have been on the rise. Multi-family starts have fallen 25.8 percent. However, this is still showing an improving real estate market. Builders are getting new opportunities to start new projects after starts with at their lows earlier this year due to lack of credit.
We are seeing the highest increase in single-family starts in the South. The West was only a slight increase whereas no rise was seen in the Northeast and the Midwest. Overall, the housing market for single-families is looking very good indeed. However, it’s not all good news.
Multi-family starts have been constantly falling after the 65.9 percent spike in May. We will most likely see the starts hit their bottom this second quarter. Multi-family home’s examples include apartments, condominiums, townhouses, etc. Read the rest of this entry »
The federal deficit is at a post-WWII high as spending is increased by as much as 20% over a year ago. Most of our spending was allocated to Medicare, Social Security and Income Security. This is normal when a country is going through a recession; however the double digit percentage gains in spending are still very large despite the recession.
Tax revenues and corporate income taxes have also fallen at double digit rates. It is no mystery where our economy is heading. One can expect a bigger deficit down the line and the downward pressure for a little while to come. This will also continue to drive the global economy lower as deficits are running high all around the globe.
What are your views on the matter? How years before we should start seeing a turnaround in the Federal budget?
If you are one of those people watching the gas prices rising everyday then you are not alone! The price of petroleum has jumped by more than 20% in June. How is this affecting the global economy? Wachovia reported Friday that this has caused a more than expected increase in import prices, rising about 3.2 percent in June.
Non-oil import prices did not change much. Biggest increases for non-oil products were about 0.2 percent. This caused the year-to-year inflation rates to be down. Therefore we should see a downward pressure on prices for most products.
Oil prices are predicted to decline in July and in the coming months. This should continue the downward slope of import prices as well as other non-oil products. Overall it looks like we might be seeing some relief at the gas pump for a little while longer. Will the prediction follow through and what can we see from the global economy in the coming months?
Wachovia reports consumer credit outstanding in May, showing a $3.-2 billion decline. Though this seems like a big amount, this drop is smaller than expected. Judging by the last three straight months of steep decline the expected drop for May was to be much greater. This was mainly due to increased amount of retail sales. What does this tell us? Perhaps we are seeing a little bit of a rebound in the economy.
The report also shows a 3.7 percent decline in revolving credit (e.g. credit cards) and a 0.3 percent decline in non-revolving credit (e.g. loans). This is, of course, consistent with the fact that consumers are not eager to spend money. Report shows that nominal personal consumption expenditures declined 1.8 percent year-over-year. This is the worst we have seen it since 1960 folks! Lenders have no choice but to cut credit lines and raise minimum payments.
Though the numbers are looking bad, there is no doubt that lower numbers still were expected. So what does this tell us? Is it good news or still bad news for our economy?
For 3 straight months, existing home sales have been up. A very good sign that we are moving forward to get ourselves out of the housing slump that we have been in. Sales went up by 3.6% in June for a total of 4.89 million units being sold during the month. The median and average sales price of home has gone up, though still down, 15.4 and 11.8 percent respectively.
