Unemployment falls to 2008 level
As more people find jobs, consumer confidence will increase. Employment, in my opinion, is one of the key factors that can lend strength to the housing market, so I’ve been watching this closely. While I don’t see any point in talking about weekly numbers announced, the four week moving average looks good when the new claims for unemployment insurance fall to the lowest level seen since April 2008.
The US has created more than 200,000 new jobs for the last 2 months in a row – and our unemployment rate in January fell to a 3 year low of 8.3%.
During the last quarter of 2011, the economy grew overall at a 2.8% pace, which is respectable. We’re not out of the woods – there are still a staggering 23 million people without work. Read more at Reuters: http://www.reuters.com/article/2012/02/09/us-usa-economy-idUSTRE7BM0AB20120209?feedType=nl&feedName=ustopnewsearly
Meanwhile, the stock market is up about 7% so far this year. Since about 20% of home buyers in this market are investors; this is indirectly another good sign for housing.
Amazingly, the weekly average 30 year mortgage interest rate last week was below 3.75%! http://actvra.in/sG6
Finally, 2/3 of Californians have an optimistic outlook – believing their own financial situation will improve during 2012. Since our state is equivalent to the 8th largest country in the world, this is significant. The San Francisco Bay Area and Silicon Valley Areas are the most optimistic about the future (versus southern Californians where economic conditions are worse.) http://www.reuters.com/article/2012/02/09/us-usa-economy-california-idUSTRE8180JP20120209
Traditionally, the Santa Cruz real estate market follows the Silicon Valley.