Today’s News Synopsis:
The NAHB reports that builder confidence in the singe-family home market decreased to the lowest point in a year. Builders began work on 580,000 houses last month, according to the Commerce Department. A survey from REMAX shows that existing home sales increased in June by 5.6% in comparison to the same month a year ago. The Bay Area lost more than 10,000 jobs in June.
In The News:
Sign On San Diego – “Economists say recovery continues, but pace slows” (7-18-10)
“The National Association for Business Economics said its latest survey, released Monday, found 31 percent of businesses added workers between April and June, the highest level in three years. And 39 percent of those surveyed say they expect to hire more workers over the next six months – the most since January 2008. Manufacturers reported the strongest increase in demand and profitability. Finance, insurance and real estate sectors saw the slowest growth.”
NAHB - “Builder Confidence Declines in July” (7-19-10)
“Builder confidence in the market for newly built, single-family homes declined for a second consecutive month in July to its lowest level since April of 2009, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. The HMI fell two points from a downwardly revised number in the previous month to 14 for July.”
Housing Wire – “Monday Morning Cup of Coffee” (7-19-10)
“According to a Sunday story in the Wall Street Journal, the Securities and Exchange Commission (SEC) was split on its decision to accept the $550m settlement in its case against Goldman Sachs (GS: 145.68 -0.34%). The investment bank agreed to pay the biggest fine in SEC history without having to admit fraud in a case that alleged it misguided clients when selling mortgage-backed securities.”
Housing Wire – “Annual Home Sales, Prices ‘Holding its Own’: ReMax Survey” (7-19-10)
“Buyers looking to close on home sales in time to collect the homebuyer tax credit pushed existing home sales up in June 5.6% compared to the same month a year ago, according to a monthly survey of 54 metro areas conducted by the national brokerage chain ReMax. In addition, Denver-based ReMax said home sales prices were up 3.5% year-over-year. Compared to May, transaction volume was up 7.2%. The increases were attributed on the tax credit and said despite the increases, the heightened volume will not be sustained. The chart below tracks transaction volume.”
Contra Costa Times – “10,300 jobs gone in June” (7-19-10)
“The Bay Area lost more than 10,000 jobs in June, crushing hopes that the private sector could spur a quick recovery for the region’s wobbly economy, a state labor report showed. The loss of 10,300 payroll jobs in the Bay Area marked the nine-county region’s worst one-month performance since September, according to the report by the state’s Employment Development Department.”
Bloomberg - “Housing, Leading Index in U.S. Probably Slumped in Sign Recovery Slowing” (7-19-10)
“Builders began work on 580,000 houses last month at an annual rate, down 2.2 percent from May and the slowest pace this year, according to the median estimate of 61 economists surveyed by Bloomberg News before Commerce Department data due July 20. Other reports may show sales of existing homes decreased for a second month and the index of leading indicators declined for the first time in more than a year.”
Realty Times – “Real Estate Outlook: Market Report” (7-19-10)
“The findings: Despite nervousness about the stock market and employment, 66 percent of all consumers ‘believe the economy will hold steady or improve over the next six months.’ Eighty three percent believe their own personal finances will get better or at least hold their own.”