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Real Estate Softens
The Market Bull 2018

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The major averages struggled into the final hour on mixed data. Personal Income advanced .3% in July, matching expectations on a standout increase in rental income. Wages and salaries also marked another respectable gain. The savings rate slipped fractionally but remains high at 6.7%. Personal Spending advanced .2% in July on strength in non-durable goods purchases. The inflation measuring Personal Consumption Expenditures Deflator or PCE advanced .1% in July. On a year ago basis the PCE increased fractionally to 2.3%.

More and more data shows clearly softening real estate markets. Information from realtor.com and their residential listings database shows substantial jumps in a number of metropolitan statistical areas or MSA’s of up to 90 percent in July from a year ago. Number one on the list is Santa Rosa +90%, 5 of the top 10 are in California and include #3 Vallejo-Fairfield up 69%, #4 San Jose-Sunnyvale-Santa Clara also up 69%, #6 Ukiah +42%, #7 Napa +42%. Also on the list with notable inventory gains include #13 San Diego-Carlsbad up 28%, #23 San Francisco-Oakland-Hayward up 22%, #47 Santa Maria-Santa Barbara up 14% and #48 Santa Cruz-Watsonville also up 14%. Of the top 50, 16 of the MSA’s are in California a figure far higher than the next most popular states as Colorado and Washington both have 3.

This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Rebroadcasts, additional writings, and other entries are also available on my Blog at www.clinvestments.com

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.


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