The market is ever-changing, and here are some top stories for today.
UCLA Economist: Will A Declining Real Estate Market Hurt California's Job Growth? The UCLA Anderson Forecast — a forecasting source that discusses economic trends in the state of California — predicts job growth in the state will slow down during the latter part of 2007 because of a recent decline in the real estate market. The prediction was made by economist Ryan Ratcliff, who conceded that for now California's “economy is mostly unfazed: job growth has only slowed slightly, for example, and there has been only a slight up tick in unemployment.” However, Ratcliff believes in a matter of time, the changes in real estate will impact job growth, especially in areas like construction and the mortgage industry. In a press release issued by the UCLA Anderson Forecast, Ratcliff is said to believe that “the answer lies in the timing and that it is in the final two quarter of 2007 and the beginning of 2008, that the job losses will manifest.” He also predicted that by mid-2008, job growth will rebound to normal levels. Click here to read more from DSNews. While the national economy is not in a recession, the UCLA economists now say the economy is “certainly close” to recessionary conditions. The Anderson Forecast says real growth in 2007 will be 1.8 percent -- “roughly on par with the near-recessionary environment of 2002” -- when real GDP advanced at 1.6 percent. However, by mid-2008, growth will return to around 3 percent as the housing slump abates and improvement in net exports and investment propel the economy forward, the economists say. Click here to read more from Central Valley Business Times.
O.C. home-for-sale inventory growing at a slower pace. The number of O.C. homes for sale grows, but at a slower rate of expansion. Attached chart has data by the slice as of June 14 for homes listed on market; pending deals, market time in months; and market time two weeks ago and a year ago. Click here to read more from the OC Register.
The rich: Still bullish on real estate. Unlike many Americans, the wealthy still think their homes are great investments. More than half of affluent homeowners expect their property value to appreciate at least somewhat during the next year, according to the Coldwell Banker Previews International Luxury Survey. A tenth of them expect significant gains. The study polled 301 homeowners with million-dollar homes (two million dollars in California) and more than a million dollars in investable assets. "These are very successful people and they still think that real estate is a good investment," said Jim Gillespie, Coldwell Banker's chief executive. The results run counter to most industry watchers' predictions for a continued slump in the overall market. Some forecasts see home prices dropping about 8 percent for the two-year period through the end of 2008. Part of wealthy home owners' optimism, according to Gillespie, is that the luxury market has held up nationwide during the recent slump. It may also confirm a basic contrarian investing impulse found among many of the wealthy: the best time to buy is when others are selling. 40 percent polled say they may buy a second home this year. Looking ahead, 36 percent of the affluent expect the price of their homes to increase significantly over the next five years and 58 percent expect at least some gain, according to the survey. Click here to read more from CNNMoney.
Patron saint of home selling? Religious gift shop reports many Realtors buy statues of St. Joseph. In this soft market it may seem more a job for St. Jude — patron saint of lost causes — but many home sellers are turning to another sacred figure for divine help. "Oh, they're very popular," said Dennis Maurice, speaking of the 600 statues of St. Joseph he sells each year. "We sell them mainly to home sellers and Realtors and we sell a lot of them." Especially now, said Maurice, owner of the Glad Tidings religious book and gift shop in Pleasanton. "You can see the trends by how many people come in here and buy one," said Maurice, who sells a St. Joseph 'home sellers' kit for $7.99. "You can tell if it's a buyer's market or seller's. You can tell when the market slows, like now." Nationally, tens of thousands of the statues are sold each year to hopeful home sellers. Tradition has it that if you bury a statue of the patron saint of carpentry and workers on the property to be sold, good old St. Joe will help get you that offer. Divine intervention may come in handy in this market. Click here to read more from The Argus.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
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