Confidence Falls - Fewer Buying Homes
From Bloomberg:
U.S. Economy: Confidence Fell By Most Since September
"Rising energy prices drove U.S. consumer confidence down in May by the most in eight months, pointing to weaker spending and economic growth in the second half of the year."
"The Conference Board's confidence index fell to 103.2 from a four-year high of 109.8 in April. The New York-based business group also said the number of people expecting to pay higher prices in the next 12 months rose to the highest since October."
"The data point to an environment of slower economic growth and rising inflation expectations that confronts Federal Reserve policy makers as they debate whether to raise interest rates next month. The proportion of consumers expecting their incomes to increase in the next six months fell to the lowest in almost three years, today's survey showed."
"The share of consumers planning to buy a home in the next six months fell to 2.8 percent in May, the lowest this year, from 3.1 percent. The proportion who said they plan to buy a car fell to 6 percent from 6.8 percent."
"Optimism about consumers' present situation fell to 132.5 from 136.2 in the prior month. The gauge of expectations for the next six months fell to 83.7, the lowest since October, from 92.3."
U.S. Economy: Confidence Fell By Most Since September
"Rising energy prices drove U.S. consumer confidence down in May by the most in eight months, pointing to weaker spending and economic growth in the second half of the year."
"The Conference Board's confidence index fell to 103.2 from a four-year high of 109.8 in April. The New York-based business group also said the number of people expecting to pay higher prices in the next 12 months rose to the highest since October."
"The data point to an environment of slower economic growth and rising inflation expectations that confronts Federal Reserve policy makers as they debate whether to raise interest rates next month. The proportion of consumers expecting their incomes to increase in the next six months fell to the lowest in almost three years, today's survey showed."
"The share of consumers planning to buy a home in the next six months fell to 2.8 percent in May, the lowest this year, from 3.1 percent. The proportion who said they plan to buy a car fell to 6 percent from 6.8 percent."
"Optimism about consumers' present situation fell to 132.5 from 136.2 in the prior month. The gauge of expectations for the next six months fell to 83.7, the lowest since October, from 92.3."
8 Comments:
Freddie Mac 2005 earnings drop to $2.1B
Mortgage finance giant Freddie Mac, emerging from an accounting scandal, reported Tuesday that its income slid to $2.1 billion last year from $2.9 billion in 2004 as it paid to settle a suit by shareholders and took charges related to Hurricane Katrina.
The government-sponsored company, which is the second-largest buyer and guarantor of home mortgages in the country, said that the $600 million or so of costs it incurred also stemmed from accounting changes. Earnings per share were $2.75, down from $3.94 in 2004.
Freddie Mac's chairman and chief executive, Richard Syron, said federal regulators are considering imposing a cap on the company's $724 billion mortgage investment holdings — as they did with rival Fannie Mae last week in a settlement of allegations of accounting misconduct.
Yes but you wouldn't know it from walking around in NYC & going out on Long Island or to any given mall any weeknight or weekend.
You have all these 20 somethings who obviously feel good enough in their economic future to spend god knows how much on designer clothing & other overpriced crap.
For all intensive purposes, rents & home prices for anything in any neiborhood in the NYC metro area (including anywhere in NNJ) continue to spiral higher & higher.
Someone tell me how much the entire PITI payment is these days with 20% on your average condo anywhere in Northern NJ and exactly what these kids do to come up with 20% down required by the condo boards..
BTW, do these people even work?? I work in the flatiron district and during lunch time, you see so many people walking around in clothes that hardly resemble anything remotely to business attire with shopping bags, whole foods bags and other shit, not to mention the trophy dogs that are all the rage.
Someone tell me how I can get in. I am 28, native NY'er & for all intensive purposes locked out of the housing market in the boros, NNJ, & Long Island because I only make $72,000 a year and don't have a trust fund or rich mommy to pay my way..
Yes but you wouldn't know it from walking around in NYC & going out on Long Island or to any given mall any weeknight or weekend.
You have all these 20 somethings who obviously feel good enough in their economic future to spend god knows how much on designer clothing & other overpriced crap.
For all intensive purposes, rents & home prices for anything in any neiborhood in the NYC metro area (including anywhere in NNJ) continue to spiral higher & higher.
Someone tell me how much the entire PITI payment is these days with 20% on your average condo anywhere in Northern NJ and exactly what these kids do to come up with 20% down required by the condo boards..
BTW, do these people even work?? I work in the flatiron district and during lunch time, you see so many people walking around in clothes that hardly resemble anything remotely to business attire with shopping bags, whole foods bags and other shit, not to mention the trophy dogs that are all the rage.
Someone tell me how I can get in. I am 28, native NY'er & for all intensive purposes locked out of the housing market in the boros, NNJ, & Long Island because I only make $72,000 a year and don't have a trust fund or rich mommy to pay my way..
To Anon 9:14pm.
Listen I feel your pain. At least you are making in the low 70s. Hey look at it this way at least you are locked out of the RE market with just a pad lock, I am bolted out with chains, and 3 padlocks (smile). Really I feel your frustration.
R.L.
I hear you, Anon 9:14. It would take in excess of 40% of our monthly gross income for my SO (significant other) and I to afford a starter cape on a postage stamp sized lot in NNJ.
No thanks. Still, all the family's here, so we rent and rant and wait.
Maybe you don't see it close to the city. But out here in Suffolk County, the honest Realtors know that now the buyer is king. There are so many houses in the Three Village school district (Stony Brook, Setauket, East Setauket) that we can't see them all. Prices are down from last year. Inventory is up. Builders say "we will take any reasonable offer."
I have always wondered how other people my age were walking around my neighb (DT JC) and hoboken, living in my building wearing jeans not looking like they are working. It is really odd when you see an elevator full of people dressed in office clothes with many others in jeans and casual wear with their dogs. How can they afford the $1500+ in rent????? What is odd is my rich mommy and daddy can afford to buy me a place, but I neither expect them to nor are they willing to. People need to learn a little something known as self reliance.
So yeah don't feel so bad we are all in a similar place, hell I even lived at home with the parents for a year to save some money. A lot of good that did me so I have a pile of cash but not even close to enough to get the place I want. Hopefully prices will subside, it is happening in the suburbs but not yet in hoboken, Brooklyn, or Manhattan. Hopefully soon we all can afford things again, ah if only it were like 2000 again prices I could handle unlike todays crazy prices.
Greets to the webmaster of this wonderful site! Keep up the good work. Thanks.
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