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.
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