The national median existing-home price is projected to rise 5.5 percent in 2003 to $166,900, while the median new-home price should grow by 3.0 percent this year to $193,200.
CALIFORNIA HOUSING AFFORDABILITY INDEX *
Mar-03 Feb-03 Mar-02
California 28 30 29
United States 59 59 57
On the national level low interest rates have decreased income needed to quailify for a home loan
Construction employment edged up in April (18,000), with most of the
gains among general building contractors (13,000). General building
contractors have added 39,000 jobs since employment reached a recent low
point in July 2002. Residential building contractors have accounted for
all of that growth
Housing has been one of the few bright spots in the economy for over two years, as declines in mortgage rates have fueled demand for homes and mortgage refinancing. By at least one analyst estimate, the housing and mortgage industries were responsible for about 50 percent of economic growth in the last year.
The bugaboo to me is that if you look at fifty percent of the economy is being tied to increased debt there is a limit as to how much housing can escalate in price as that is what it has to do to give a future return of dollars. For the first four years or so the return is largest for those who hold the mortgage as it is tax savings. Yet those savings don't appear to be being invested in other area of business. Lack of commercial growth can be the result of too vast of a build up it self corrects.
EMBARGOED UNTIL RELEASE AT 10:00 A.M. EDT, TUESDAY JUNE 3, 2003
Thomas Anderson: (202) 606-9879 BEA 03-19
Foreign Direct Investors' Outlays to Acquire or Establish U.S.
Businesses Fell Sharply in 2002 for the Second Year
In 2002, outlays by foreign direct investors to acquire or establish U.S. businesses
fell by more than half for the second consecutive year. Total outlays were $52.6
billion, down 64 percent from $147.1 billion in 2001 and 84 percent below the
record $335.6 billion in 2000, which was the final year of a three-year period
of exceptionally high outlays. As a result of these declines, spending for new
investments in 2002 was at the lowest level since 1994.
These stats are not what we wish to see as we are viewed as international nation to invest in.
Wages and salaries
Private wage and salary disbursements decreased $16.1 billion in April, in contrast to an
increase of $22.8 billion in March. Goods-producing industries' payrolls decreased $5.0 billion, in
contrast to an increase of $1.8 billion; manufacturing payrolls decreased $6.4 billion, compared with
a decrease of $1.4 billion. Distributive industries' payrolls decreased $3.2 billion, in contrast to an
increase of $5.7 billion. Service industries' payrolls decreased $7.9 billion, in contrast to an increase
of $15.4 billion. Government wage and salary disbursements increased $4.0 billion, compared with
an increase of $2.7 billion.
The growth is in the wrong direction.
Hopefully there is pent up demand for new employees as it could very well be that those working are silently putting in more hours than are showing up on stats. If we do not see growth in the private payroll i am pretty sure AG will have to drop the rates. He will sustain housing and that fifty percent contribution to the economy To me it is the wrong sector that is playing the prime roll. |
