May 27th, 2009
Single-family houses and condos saw higher sales last month.
Though the gains were substantial over last month, they were still down
nearly 10 percent from just a year ago.
Inventories, however, rose nearly 9 percent
to roughly 4 million vacant homes. That's nearly a 5 percent increase in housing
supply over the previous month.
While a rise in housing inventories in
spring is typical, it appears the increase is not due to seasonal factors. Bank
repossessions made up nearly half of sales across the nation last
month.
The median price for existing homes now sits at around $170,000, marking a 15.5 percent year-over-year decline in price. The West is suffering the worst
with median prices dropping to nearly 22 percent during the past few years.
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May 26th, 2009
Up only slightly this
week, the markets did see positive gains for the week. But that can hardly be
labeled a definite surge or comeback. This week saw substantial seesaws on Wall
Street, with the Dow closing up nearly 3 percent one day and other days down the same percentage.
Results from Sears, Gap and Aeropostale
helped finish trading on Friday to bring the Dow nearly even. This week's economic calendar will be a much better indicator
of whether the markets are poised or in a position to stage another rally. Key
reports are scheduled to be released that will focus on home sales and
big-ticket manufactured goods.
Banks reduced borrowing last week and
investment banks reportedly didn't borrow at all ,which has been the first time this has happened since September of last year.
Markets were closed yesterday for Memorial Day, and the short week will offer possibly far more turbulent trading than last week. Many analysts are not sure where the markets will go.
We'll have a good indication of whether the market will have a positive or
negative week by tomorrow most likely.
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May 21st, 2009
Buying a house today could say the average home buyer 25 percent and up to 75 percent of what they would have paid just five years ago.
So, which U.S. city is considered the
most affordable? Indianapolis currently holds the title. That marks the
15th consecutive quarter Indianapolis has led in home affordability. The city's
above-average per capita income and relatively low home prices helped this city
lead the nation again.
Conversely, New York tops the list of worst cities
in which to live in terms of affordability. With only 20 percent of homes being considered
"affordable" and below average pay,
New York dominated the worst list along with other cities like San Francisco, Los
Angeles and Honolulu.
Other cities near the top of the
affordability list include Youngstown and Akron, Ohio, along with Grand Rapids, Mich.
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May 15th, 2009
It's a stark turnaround from last week, when
traders continued a seven-week upward trend by closing out the week with
positive gains. Traders found little incentive this week to buy stocks.
Dropping oil prices and April's consumer-prices report pushed stocks down this
week.
Many on Wall Street feel overwhelmed. The government stress tests,
fluctuating oil prices and general confusion over the direction of the market has left many traders weary and not eager to trade.
Still, the Dow
sits at 8,268 at close on Friday. That's up nearly 30 percent since February even
though the market feel roughly 3.6 percent this week. The next couple of weeks could
see government action from the results of the stress tests that might sway the
markets toward more positive gains. Those actions, however, could also keep this
new downward trend going.
What is clear is that the markets are still
struggling and it is anybody's guess when things will turn around.
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May 12th, 2009
The remaining 10 will need an unprecedented $75 billion
investment to be viable again and survive the current
recession.
Four of the banks -- US Bancorp, BB&T, BNYMC and Capital One
Financial -- were sound enough to survive a prolonged recession. Those banks
announced on Monday that they plan on releasing stock options to assist in
helping repay the money loaned them by the government over the past nine
months.
While many see the results as a good sign, some on Wall Street
see the extra stocks being created and sold by the banks as potentially
unsettling. Pouring extra stocks into the market may have an unwanted reaction
on Wall Street, just as saturating the market with more bonds might further weaken the
economy in the long run.
By November all the banks should be in a
position to have passed the stress tests and be well on their way to recovery.
Most believe that in two to three years the major banking corporations will be
completely healthy and the U.S. will be well out of the current
recession.
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May 08th, 2009
The U.S. Labor Department released
unemployment numbers for April this week and the 539,000 reported is the fewest
in the past six months and was substantially lower than expected.
The
Dow is still down overall for the year even after the huge increases the past
two months and the nearly 2 percent gain in Dow value for Friday. Some analysts predict that
with a continued rally the market will see positive territory for the year by
the end of May.
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May 06th, 2009
Production remains steady, with crude production for the first week of May rising by 600,000 barrels to sit at nearly 376 billion barrels. This lower than expected number of actual barrels in storage, however, is a clear indication that the demand for oil is rising.
Consequently, the price of gas per gallon has jumped more than 3 cents to $2.11 in the last week. But it is still below what is was a month ago and $1.50 below where oil stood per gallon a year ago. The demand for gas at the pump continues to fall, however. Recent increases at the pump come from refineries increasing their capacities.
Where does oil go from here? Oil should hover around $55 a barrel through the summer with the price per barrel expected to exceed $60 a barrel by year's end. Expect the prices at the pump to increase also but to stay well below levels from just a year ago.
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May 05th, 2009
A total of 19 banks
are undergoing the so-called stress test and word has been pouring out that the
results are overwhelmingly positive. Investors are remaining wary of
the tests, however, and are not yet calling the market a bull market. The stress tests
are expected to show that the tested banks need more investments but are capable
of returning hefty profits. Banks like Citigroup and Bank of America Corp. are
among those that will reportedly pass the test.
More than half the banks are expected to pass with flying colors while
the rest will be asked to boost their capital base.
The recession is
being seen as following a predictable pattern and the stress test is a potential
indicator that markets are getting better and optimism in investment will
lead the way in the second half of the year.
Markets across the globe are
looking likely to follow suit. By the end of the fiscal year of 2009, the U.S.
may just be getting close to ending the current recession.
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May 01st, 2009
The Dow saw amazing increases too, as it saw a
25 percent increase in value in the past month. Many on Wall Street are calling
April the "rally" month and hope the trend continues into May.
May might very well see another April-esque performance from the markets. With the
government's upcoming assessment of major banks -- or the so-called "stress-test"
of them -- and the Federal Reserve launch of the much-awaited program to bolster
commercial real-estate lending, the stock market could see much higher
gains in May and June.
Crude oil is up as well, which is another
indication and further proof that the worst of the economic crisis might behind the
U.S. markets. It's still uncertain whether other major markets across the globe
will follow suit and see gains, but if April is any indication, it is a fairly
safe bet.
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