1. I s su e 13 , Vo lu me 1 2 / Mar c h 3 0, 2 012
Positive Market Tidbits from the Past Week The Week Ahead -> The “Keys”
Tim McLaughlin - Fed Minutes and Employment Data highlight the week
According to the “Winter 2012 Rent vs. Buy Index” from
Trulia, homeownership is currently more affordable than
Date Economic Release Prediction Last
renting in all but two of the 100 largest U.S. metropolitan
areas.
4/2 Construction Spending (MoM) 0.8% -0.1%
The latest index, which is based on asking prices for
4/2 ISM Manufacturing 53.4 52.4
rental units and for-sale homes between Dec. 1, 2011, and
Feb. 29, 2012, shows that homeownership is often a 4/2 ISM Prices Paid 62.3 61.5
relatively affordable option even in expensive real estate
markets, such as New York, Los Angeles and Boston. Only 4/3 Factory Orders 1.4% 1.0%
in Honolulu and San Francisco is renting currently a better
deal than buying. 4/3 FOMC Mtg Minutes (3/13) - -
====================== 4/3 Total Vehicle Sales 14.50M 15.03M
The U.S. housing market, a notable soft spot in the 4/3 Domestic Vehicle Sales 11.40M 11.70M
nation's weak economy for the past four years, is showing
4/4 MBA Mortgage Applications - -2.7%
marked signs of recovery.
4/4 ADP Employment Change 205K 216K
Real estate markets are showing signs of life as falling
prices spur buyer demand, lifting home sales and new 4/4 ISM Non-Manufacturing 56.7 57.3
construction from the depressed levels of the past three
years. The spring selling season, traditionally the busiest 4/5 Challenger Job Cuts (YoY) - 2.0%
period of the year, appears to be off to its best start in five
years. Sales of existing homes in January and February 4/5 RBC Consumer Outlook - 47.5
were at their highest level since 2007, according to data out
4/5 Initial Jobless Claims - 359K
early this week. The decline in real estate prices has slowed
its pace, making Americans less cautious about spending 4/5 Continuing Claims - 3340K
and potentially more disposed to buy a home.
4/5 BB Consumer Comfort - -34.7
For the first time since 2005, investment in residential real
estate, including home building and renovation, has 4/5 ICSC Chain Store Sales - 4.1%
contributed to U.S. economic output for the past 3 quarters.
4/6 NonFarm Payroll 210K 227K
======================
4/6 Private Payroll 223K 233K
Bidding wars, absent from most parts of the U.S.
residential market since its peak in 2006, are erupting from 4/6 Manufacturing Payroll 20K 31K
Seattle to Washington, D.C. The inventory of homes hovers
close to a six-year low, while an increase in jobs and record 4/6 Unemployment Rate 8.3% 8.3%
affordability are tempting more buyers. The number of
4/6 Avg Hourly Earnings (MoM) 0.2% 0.1%
contracts to buy previously owned homes jumped 14% in
February from a year earlier, the National Association of 4/6 Avg Hourly Earnings (YoY) 1.9% 1.9%
Realtors reported earlier this week.
4/6 Avg Weekly Hours 34.5 34.5
The U.S. metropolitan areas with the strongest
economies appear ready to absorb the additional inventory, 4/6 Underemployment Rate - 14.9%
said Mark Zandi, chief economist for Moody’s Analytics Inc.
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