Here’s the highlights of the Nations economic and financial news for the past week (September 23rd – 28th), as it may effect the local real estate markets here in orange County, CA.
National Home sales down again:
A busy week of economic reports brought mixed news, shaded to the negative side. Both new- and existing-home sales fell in August, and consumers felt less confident than earlier in the summer. Durable-goods orders experienced their biggest drop of the year in August. On a positive note, gross domestic product for the second quarter held steady, personal income rose slightly, and a key inflation figure fell for the first time in nearly a year. For the week, the S&P 500 Index rose 0.1% to 1,527 (and has earned a year-to-date return of 9.8%). The yield of the 10-year U.S. Treasury note fell 6 basis points to 4.57%.
National Housing market woes continue:
Existing-home sales continued their slide, falling 4.3% in August to an annualized 5.50 million units. The decline was within expectations, however, and house prices appeared to be stabilizing. Sales were slower across the country, with the market overall moving at its slowest pace in five years. The supply of existing homes continued to grow, reaching 10 months of inventory in August, well above the 7.3 months of inventory from a year ago. Condominium sales decelerated at a faster pace than single-family home sales. New-home sales were also at a crawl in August, falling 8.3% to 795,000 annualized units. The sales pace is the slowest in nearly 10 years and was below already gloomy expectations. The West and South regions were hit hardest, experiencing significant declines, while the Northeast and Midwest actually saw large gains in sales. The median price for a new home fell 7.5% from its reading a year ago. Unfortunately, the same trend was true in Orange County, with number of homes sales slightly decreasing from the previous week, continuing the trend for several months.
Consumer confidence remains shaky:
Stock market turbulence and a weaker jobs market had consumers feeling less confident for the second consecutive month. The Conference Board’s Index of Consumer Confidence fell to 99.8 in September, after achieving a post-9/11 high as recently as July. All index components were lower, making September’s figure the lowest reading in nearly two years. Higher percentages of consumers viewed jobs as being less plentiful and harder to get than at any time since November 2006.
Nonresidential construction boosts spending:
August construction spending rose 0.2%, above expectations of a downturn. Private construction was flat, despite a 1.5% drop-off in residential construction. Nonresidential construction climbed 1.6% for the month. Hotel, office, and commercial building projects all showed solid gains.
Second-quarter GDP holds steady:
The final estimate of real gross domestic product (GDP) for the second quarter measured a 3.8% annual rate, within expectations. Homebuilding sliced more than half a percentage point from overall growth during the period, and consumer spending was down significantly from the first quarter as well. Corporate profits, on the other hand, climbed to a record high and increased their share of GDP overall.
Demand for durable goods falls:
Orders for durable goods, manufactured items expected to last more than a year, plunged 4.9% in August, their largest drop since the beginning of the year. The decline was far greater than expectations and came on the heels of a solid 6.1% gain in July. Nearly all manufacturers took fewer orders during the month, with civilian aircraft demand registering the largest drop-off. Excluding transportation, orders were off 1.8% from July.
Personal income Nationwide posts slight gain:
Strong income from investments boosted personal income 0.3% in August, within expectations. Wages and salaries rose a modest 0.2%, dwarfed by 1% growth in dividend income, which has been strong throughout the year. Personal spending rose 0.6% for the month, largely on the strength of automobile sales, while the saving rate decelerated to 0.7%. The consumer spending deflator, a measure of inflation closely watched by the Federal Reserve, eased 0.1% in August, its first dip in nearly a year.
If you have any questions regarding mortgage loans for the purchase or refinance of real estate in Orange County, CA., or if you would like a second quote on a Mortgage loan with very low interest rates and low costs, please feel free to call us at: 949-388-3396 or drop us an email at: Info@SearchOCHomes.com
Once you see the backyard of this 3 bedroom home for sale at 148 S. Kathleen in the City of Orange, you’ll cancel next years trip to Cancun and as well as annual passes to Disneyland. This renovated single story home has the most spectacular backyard swimming pool available for sale today in the City of Orange. The owner spent over $100K on the pool and backyard landscaping and these fine upgrades can be purchased at just a fraction of the original cost, for this home is priced at just $649,000.
This home for sale at 148 S. Kathleen also has many other fine upgrades such as: new Air Conditioning system and Force Air Unit, extra wide driveway with Stamped concrete driveway that has room for a boat or maybe a RV(?), new roll-up garage door, smooth ceilings, newer paint, recessed lights, new dual pane windows, ceilings fans, hardwood floors, new sinks and faucets, new floor and door molding, granite tile surrounding the fireplace, and more. The home consists of 3 bedrooms, 2 bath, 2 car garage and sits on a large 8,300 square foot flat lot that is fully fenced with a stamped stucco solid 6 foot high wall.
This home enjoys a desirable east Orange location that is just south of Villa Park, and close to Freeways, Orange Mall, Schools, St. Joseph’s Hospital, and Shopping. The home is located in the respected Orange Unified School district and there are no association dues nor Mello-Roos associated with this fine home. For more details and photos of this fine home, visit: 
Each floor plan has a fireplace, 2 car garage, family room and dining area, and come with a spacious 5,000 square foot lots. Since this subdivision was developed in the surrounding rolling hills, many of the lost offer sweeping vies of the local mountains and city lights. There is a small master association called the Oso Valley Greenbelt Association which manages several tracts in the area and the dues are only about $45 on a monthly basis at the time of this article (subject to change). The community is also part of the Lake Mission Viejo association will full rights and access to this popular lake, and ther is no Mello-Roos. 
Communities:
With the hot summer days this season, homes and condos with pools have been on the minds of many home seekers. A detached home with a private pool is nice, but the maintenance can add up, plus the added risk to the homeowner. A good pool cleaning company will charge around $65 to $85 per month for most private pool homes in Laguna Niguel, and if you keep your private pool heated, the monthly costs will be a good bit higher. 
Short Sale Information,