News for Prescott AZ - AmericanTowns.com

Wednesday, February 24, 2010

Market update 2-24-2010

 

Happy Wednesday all! Well despite the news below things seem to be busy with most of you whom I have spoken with. It sounds like people are out looking and our season has yet to begin in Prescott. I always like to point out that most “news” is history so here is the “news” from January sales.

 

New Home Sales Plummeted 11% to annualized rate of 309,000 in January, the worst on record, and  erasing all gains made in the market during the past year as the economy recovers from recession. As a result, months of inventory increased to 9.1 months, the highest since last spring. Inventories  were  estimated at 234,000 homes for sale at the end of January, up from 233,000 in December.  The median price for a new home fell, year over year, in January by 2.4%, to $203,500 from $208,600 in January 2009. Regionally, January new-home sales dropped 35.1% in the Northeast, 11.9% in the West, and 9.5% in the South. Sales rose 2.1% in the Midwest.

Now there has been a lot of speculation on rates going up over the Spring. It still is a concern but here is a possible good sign.

 

Treasuries Gain as Bernanke Says Interest Rates Are Likely to Remain Low Treasuries rose as Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is in a “nascent” recovery that still requires low interest rates to encourage demand by consumers and businesses.

 

For those of you(like me) had no idea what “nascent” means, I looked it up! It means to recently come into existence. I really would be much more impressed with the DC crowd if they were more prone to touting their financial skills and understanding of the general market, rather than their vocabulary.

Kind of interesting as there is a lot of discussion in DC about the long term implication for workers skills and wages and how it is impacting long term unemployment. Perhaps if this whole “stimulus” thing doesn’t work out, Bernanke has a future teaching English literature.

 

I would prefer they understand that people need to be working to buy homes. No tax credits, or rebates will replace that fact.

Have a great week.

 

Dan Shaw

 

Peoples

 

928.710.9146 cell

480.248.1199 fax

dshaw@peoplesmortgage.com

 

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