Wishing you and yours a safe and exciting celebration this Independence Day!
Thoughts to Ponder . . .
- If Cinderella’s shoe fit perfectly, then why did it fall off?
- All generalizations are false, including this one.
- Yes officer I saw the speed limit, I just didn’t see your car.
- Never wrestle with a pig. You’ll both get dirty, and the pig likes it.
- I think it’s wrong that only one company makes the game Monopoly.
And Now on to The Market Update . . .
Case-Shiller’s Home Price Index
- In recent weeks, I have been mentioning how the Summer and Fall housing markets are being predicted, by some experts, to be far above average.
- We should hope they are correct on account that the early Spring market was a rather large disappointment.
- The latest Case-Shiller’s home price index increased by a rather small 0.3 percent in April.
- In February home prices were up by 6.0 percent from the same time in the prior year.
- However, for the month of March, the year-on-year rate slipped back down to 5.7 percent.
- This is the first reversal in year-on-year spread in a very long time.
- To the surprise of many, San Francisco home prices dropped 0.6 percent in the month.
- Boston was down by 0.7 percent and Cleveland declined by 1.0 percent.
- Not surprising is Seattle leading the country with a year-on-year spread up by 12.9 percent.
Pending Home Sales
- Even Pending homes sales for the month.
- May was the 3rd month in a row of decline with a jaw dropping 0.8 percent.
- This is in direct contrast to expert predictions of a 0.5 percent gain.
- The weakness in the housing market is spread evenly throughout regions across the country.
- The West, usually the strongest market, declined by 1.3 percent, which was the largest decline recorded for the month.
- Although the data on final home sales does not always move in lock-step with the pending home sales data, this most recent report could prove troubling for future final sales data.
This week’s potential market moving reports are:
- Monday July 3rd – ISM Mfg Index, Construction Spending
- Tuesday July 4th – Independence Day Celebration – All Markets Closed
- Wednesday July 5th – MBA Mortgage Applications, Factory Orders, FOMC Minutes
- Thursday July 6th – First Time Jobless Claims, ADP Employment Report
- Friday July 7th – National Employment Situation