Get The Market Buzz

June was ‘bustin’ out all over…now July indicates that we have slow but steady growth which is preferable to peaks & valleys (the extremes).   I am seeing a slight improvement across the board.   Days on the Market dropped slightly.  Average List Prices rose nominally.

The Standard & Poor’s/Case-Shiller index, which measures movement of home prices in 20 major cities, rose 0.5% in May from April, the first monthly gain since June 2006.  Analysts say that the housing market is showing signs of stabilization.  “The housing market looks like it has found a floor and we may be on the way to some kind of gradual improvement,” said Ken Mayland, president of ClearView Economics.  “After three years of this nasty housing recession, I think we’ve got to be pleased with such an improvement in a relatively short period,” said Harm Bandholz, economist at UniCredit Research.

Analysts feel that unless there is improvement in employment, home prices will not rebound.  According to the Federal Reserve, household net worth dropped by $13.9 trillion in the first quarter of this year due to a drop in home prices and stocks.  Homebuyers’ confidence has been hit and many have deferred their decision to purchase homes.  “We are preparing for this recovery to take a while to pick up steam,” said Frits van Paasschen, chief executive officer of Starwood Hotels & Resorts, the third-largest U.S. lodging company.

DATELINE:   Across the  U.S.A.

FLASH:  Housing starts (new construction) rise to 7 month high

According to data released by the Commerce Department, housing starts in June rose 3.6%.  Housing starts have risen for 2 straight months including June.  Single-family home starts increased by 14.4% in June, the biggest increase since December 2004.  “The housing starts rise is clear evidence of a rebound of demand for single-family homes,” said Pierre Ellis, an economist at Decision Economics.  Building permits increased by 8.7% to a 563,000 annual rate, the highest level of the year.

DATELINE:  Across the U.S.A.

FLASH:  New home sales rise 11% in June

According to the Commerce Department, sale of new homes rose 11% to a 384,000 annual pace in June; this was the strongest sales pace since last November.  This points to stabilization in the housing sector which has been in slump since 2005.

DATELINE:  West Goshen, PA

FLASH:  Money Magazines “America’s Best Small Towns”

West Goshen, PA is ranked 11th on Money Magazine’s list of the Top 100 Best Small Towns in America.  This family-friendly community has a quiet suburban feel, with no shortage of nearby shopping centers and local businesses, while Philadelphia is less than an hour away.

Among the four area parks around the area, West Goshen Community Park has its own amphitheatre with concerts and outdoor theater.  Summer activities include a fitness boot camp for women, fieldtrips for teens and a Fourth of July bicycle parade.

DATELINE:  Across the U.S.A.

FLASH:  Existing Home Sales

According to the National Association of Realtors (NAR), existing home sales in June rose by 3.6% to an annual rate of 4.89 million…the highest since last October.  Lawrence Yun, NAR chief economist, said: “The increase in existing-home sales occurred in all major regions of the country.”  Analysts say that this signals moderation in the housing slump.