Posts Tagged ‘decline’

Private Job Reports Looking Up

September 7th, 2012 Comments off

In advance of the government’s jobs report, CNNMoney tells MHProNews paycheck processing firm ADP says private employers added 201,000 jobs in Aug., an increase from 173,000 in July. Adding more than 150,000 jobs in a month decreases the unemployment rate. ADP says the service sector added 185,000 new jobs, while manufacturing added 16,000. Construction employment rose 10,000, the third consecutive monthly increase, and the largest rise since March. Meanwhile, the Labor Dept. says unemployment claims dropped 12,000 from the previous week, and outplacement firm Challenger, Gray, & Christmas report planned job cuts hit a 20-month decline.

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Economy Continues Sputtering Forward

August 31st, 2012 Comments off

AnchorageDailyNews tells MHProNews consumer spending in July rose 0.4 percent over June, the best rate in five months, following no change in June and a small decline in May. Retail spending offset weak manufacturing. Income grew in July 0.3 percent, the same for May and June, and people earned 0.3 percent more after taxes in July over June. Paul Dales, with Capital Economics, said the economy is slowly improving, but cautioned that higher gasoline prices and a drop in consumer confidence could slow consumer spending, which accounts for 70 percent of economic activity. Economists expect the government’s jobs report, set to be released Sept. 7, will show 118,000 new jobs were added in August, and that the unemployment rate held steady at 8.3 percent. Notwithstanding food and energy,  the Federal Reserve reports prices over the past year rose only 1.6 percent.

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Housing Starts Edge Down, while Permits Rise

August 16th, 2012 Comments off

The National Association of Home Builders (NAHB) tells MHProNews while housing starts fell 1.1 percent in July to a seasonally annual adjusted rate (SAAR) of 746,000 units, according to the Department of Housing and Urban Development (HUD) and the U.S. Census Bureau, new building permits permits rose 6.8 percent in July to a SAAR of 812,000 units, the best pace in four years. Following four months of gain, single-family housing starts dropped 6.5 percent, while multi-family starts spiked 12.4 percent, their best rate since Feb. 2012. Single-family building permits increased 4.5 percent to their best rate since March 2010, while multi-family permits jumped 11.2 percent. Regionally, for July housing starts rose in the Midwest 17 percent in July, but fell 1.3 percent in the Northeast, 3.5 percent in the South, and 5.3 percent out West. New housing permits rose 12.2 percent in the Northeast, registered a 5.8 percent gain in the South, and a 14 percent rise in the West. The Midwest saw a decline in permits of 4.2 percent.

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Index Looking up for Builders

August 15th, 2012 Comments off

The National Association of Home Builders tells MHProNews the NAHB/Wells Fargo Housing Market Index (HMI) reports builder confidence for new, single-family homes rose for the fourth straight month in August to its highest level since Feb. 2007. All three components that comprise the HMI—current sales conditions, sales prospects for the next six months, and traffic of prospective buyers—posted a six point gain in July followed by a two point increase in Aug. to 37. Any number above 50 indicates builders view sales as good rather than poor. Regionally, builder confidence rose nine points to 42 in the Midwest and two points to 35 in the South. The HMI indicates a decline of nine points to 25 in the Northeast and three points to 40 in the West. But as NAHB Chief Economist David Crowe says, “we are still at a very fragile stage of this process and builders continue to express frustration regarding the inventory of distressed properties, inaccurate appraisal values, and the difficulty of accessing credit for both building and buying homes.”

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Existing Home Sales Fall in June

July 19th, 2012 Comments off

HousingWire reports the seasonally annual adjusted rate (SAAR) of existing home sales dropped from 4.62 million in May to 4.37 million in June, a decline of 5.4 percent, although sales in June topped the 4.18 units sold in June 2011. The lower inventory of available homes and increased demand managed to push prices somewhat higher, but also hindered choices of available homes. Twenty-five percent of June sales were distressed homes—the same rate as May, but 30 percent below June 2011 levels. Says Lawrence Yun of the National Association of Realtors, “Buyer interest remains solid, but inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets. The price improvement also results from fewer distressed homes in the sales mix.” MHProNews has learned the median single-family home price rose eight percent over last June to $190,000.

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Default Rates Decline

July 18th, 2012 Comments off

MHProNews has leaned from NationalMortgageNews the default rate for both first and second mortgages declined May to June, 2012, with first mortgages defaulting at a May 2007 level, and second mortgages at an eight year low. The composite drop was from 1.5% in May to 1.41% in June, according to S&P/Esperian numbers. In addition, bank card defaults dropped from 4.35% in May to 3.97% in June, reaching its lowest level since the end of 2007. David Blitzer, managing director of S&P Dow Jones indices, says, “Consumer default rates are falling and we are approaching new lows across most loan types. In the last recession most default rates peaked in the spring of 2009; since then the decline has been bumpy but consistent.”

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JPChase: Chasing Bulls?

July 12th, 2012 Comments off

Standard & Poor’s Case-Shiller Index showed slowing declines in home prices earlier in the year, and Zillow‘s survey of economists are expecting an 0.4% decline through this year, but JPChase analysts say the 4.8 million homes in the shadow inventory will drag prices down another two percent this year as more enter the foreclosure market and are sold. But next year begins an optimistic recovery that will lead to a home price rebound of 12% over the next four years. As HousingWire tells, Chase says over 2.5 million problem loans will be resolved this year, which will reduce the number in the shadow inventory. The analysts report adds, “Given the large supply and volume of continuing delinquencies, we expect it will take years to work through all the defaults, but significant progress is being made, which gives us reason to be more bullish on housing than we have been for years.”

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Seniors Fare Better During Housing Crunch

July 6th, 2012 Comments off

Senior Housing News states although household net worth across all age groups fell 35 percent between 2005 and 2010, from $102,844 to $66,740, for 65+ homeowners the drop was only 13 percent, from $195,890 to $170,128. The 35-and-under households median net worth dropped from $8,528 to $5,402, a 37 percent decline. The most home equity of all age groups is the 70-74 range, with a value of $140,000. has learned much of seniors’ net worth, excluding home equity, is in outside investments.

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Household Formation Decline Lowers Demand for Household Goods

June 25th, 2012 Comments off

The Washington Post reports the number of adults sharing households spiked 11.4 percent from 2007 to 2010, representing an increase from 17 percent to 18.7 percent of all U.S. households, reversing the empty- nester trend. According to the Census Bureau, during that period the number of young adults living in their parents’ homes rose 1.2 million to 15.8 million, with two-thirds of that increase coming from those aged 25-34. MHProNews has learned from UPI, Rose Kreider, a family demographer with the Fertility and Family Statistics Branch, and author of the Current Population Survey, says, “The increase in 25-to 34-year-olds living in their parents’ home began before the recent recession, and has continued beyond it.” With two million fewer occupied homes had the rate of household formation continued as it had before the recession, the slower pace has resulted in less demand for furnishings and appliances, further holding back the economy.

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Philadelphia Slowdown

June 22nd, 2012 Comments off

MarketWatch reports the Philadelphia Federal Reserve in its June Business Outlook Survey states manufacturing in the region is down for this month as firms noted a decline in new orders and shipments. Employment remained nearly the same, but average hours fell. More companies experienced a decline in prices for their products than experienced increases. Compared to the Nov. 2011 survey, fewer companies expect to decrease their capital spending, but 60% more firms plan to keep their capital spending constant. MHProNews has learned the respondents expect business to pick up in the next six months.

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