2008 IS DOMINATED BY THE VIBRANT AND POWERFUL NUMBER 1..
Although every year promises changes and new beginnings, 2008 will stand out in future history books according to numerology experts. And if you are a student of Chinese Astrology, 2008 is the year of the rat.
So what about 2007 you ask? Who cares, it is over (thank goodness) A rocky time for many, especially the mortgage industry, home owners and potential buyers, agents, and our economy. I am focused totally on what's ahead. Don't you agree!
CONSUMER CONFIDENCE UP SLIGHTLY in December, after consecutive declines since summer. The index now stands at 88.6, up from 87.8 in November. 'This month's slight gain in confidence was due solely to an increase in the Expectations Index,' said Lynn Franco, director of The Conference Board Consumer Research Center. 'Consumers' short-term outlook regarding business conditions, employment, inflation, and stock prices improved marginally. However, while consumers are less negative about the near-term future, they remain far from optimistic.'
MORTGAGE RATES DROP TO their lowest point in more than two years. Too bad more people won't -- or can't -- take advantage. The benchmark 30-year fixed-rate mortgage plunged 26 basis points, to 5.88 percent, according to the Bankrate.com national survey of large lenders. One year ago, the mortgage index was 6.24 percent; four weeks ago, it was 6.17 percent. The 30-year fixed hasn't been this low since Sept. 21, 2005, when it was 5.88 percent. You have to go all the way back to June of 2000 to find the last time the rate on the 30-year fixed tumbled more in one week.
FORECASTING 2008 CAN BE DIFFICULT according to FORTUNE magazine. History tells us that oil shocks, real estate crashes, and banking crises are harbingers of downturns. Confidence has already plunged as consumers have been pinched by rising energy prices and falling home values. October saw another bad omen: a decline in discretionary purchases such as books and electronics. Observes Merrill Lynch economist David Rosenberg: 'You have to go back to the 1990-91 recession to find a time that this trend has been so weak heading into the holiday shopping season.' Despite all that, the U.S. economy expanded 3.8% and 4.9% in the second and third quarters, respectively - up from 2.4% and 1.1% during the same periods in 2006. That's right: For all the bad headlines, the American economy appears to be getting stronger.
AND LET NOT US FORGET this is an election year. Did you know that voter turnout increases somewhere between 11 to 18% in a presidential election year? The highest turnout recorded was in 1960 at 63.1%, the year John F. Kennedy was elected, an icon of American hopes and aspirations.
Ok, you have waited long enough. Here is what happened in our local Santa Cruz County market in 2007:
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2007 Annual Statistical Highlights for Single Family Homes:
* Inventory up 25.0% overall from 2006
* Sales down 19.34% overall from 2006
* Days on the market increased to 96, year prior 78
* Median home price decreased to $755,172 from $762,083 in 2006
* Sales price vs.listing price ratio decreased 3.3% to 96.87%
* 12.5 months of inventory available at the end of the year as compared to 4.4 at the end of 2006
* Appreciation increased 1.6% as compared to 2006 which was <0.61%>
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(These statistics are believed to be accurate but not guaranteed)
Saturday, January 12, 2008
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