Sacramento California
Just two days after Massachusetts elected a senator who opposes the president’s national health care plan, and one day after the speaker of the House said she did not have the votes to pass a national health care plan, California voted to create a single-payer system. By some estimates this will cost the state an estimated $210 billion in its first year on top of current California debt, which is about 20 billion in the red
The Senate Appropriations Committee released the bill for a vote by the full Senate next week. The legislation had been held over from last year because of the state’s ongoing budget crisis.
“California Democrats are either tone-deaf or delusional,” California Republican Party Chairman Ron Nehring said in a statement.
housing market
The Commerce Department reported today that housing starts fell 4 percent to a seasonally adjusted annual rate of 557,000 units. A number of analysts had expected housing starts to rise to 580,000 units. November’s housing starts were revised upwards to 580,000 units from the previously reported 574,000 units. It is thought the drop in housing starts was likely the result of unusually cold weather last month.
Starts for single-family homes fell 6.9 percent last month to an annual rate of 456,000 units after rising 4.0 percent in November. The multifamily housing segment rose 12.2 percent to a 101,000 unit annual pace, after surging 69.8 percent in November.
New building permits rose 10.9 percent to 653,000 units last month, the highest since October 2008. For the whole of 2009, permits dropped 36.9 percent.
Del Mar San Diego housing
San Diego housing market
According to La Jolla- based MDA DataQuick, 22,328 homes were sold in the six-county Southern California region — Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties — in December, up 16.4 percent from 19,181 in November and up 12.1 percent from 19,926 in December 2008.
Home sales in San Diego County rose by 9.8 percent in December while prices increased by 10 percent.
A total of 3,652 homes sold in December, up from 3,325 for December 2008, while the median price of a home in San Diego County last month was $330,000, up from $300,000 in the same month a year ago.
Also, the data from DataQuick, showed the “flipping rate” — resales of homes within three weeks and six months of the initial purchase — was lowest in San Diego County in December at 2.4 percent and highest in San Bernardino County at 3.8 percent. The regional average was 3.1 percent. Cunningham said the lower rate in San Diego County may reflect relatively more investor interest in foreclosure properties elsewhere.
economic bubble
Our most recent economic bubble was the housing market and we all know how that ended. Keep in mind, during the frenzy anyone who raised any red flags was immediately labeled a bubble head. When the music is playing very few plan for what will happen when the song ends.
Right now our loose monetary policy is playing another enticing song. The loose monetary policies from governments across the world have flooded the markets with capital and it seems just about everything has soaked it up. The S&P is approximately 40% more expensive in relation to earnings than its long term average. Oil is trading at a 15 month high. Metals have had an outstanding year: silver gained 49%, palladium gained 117% and copper gained close to 140%.
It just may be prudent to plan for now for the consequences of our abundant loose money policy to avoid getting caught with your pants down again.
San Diego California real estate
San Diego home
I do believe that the housing inventory is a historical lows.
But it is probably equal to the demand – which currently is close to zero! Anyone who wanted a house – bought a house.
And many of those that want to sell (mid to upper end homes) – can’t.
And currently, in San Diego, there is a very very small net migration in, but very small. This doesn’t produce any kind of meaningful demand for new single family housing.
Sacramento real estate brokers
California home sales
Trulia.com, in a recent report, found that as of Jan. 1, 2010, 21 percent of homes currently on the market have experienced at least one price reduction. The total amount reduced for all homes nationwide declined to $21.2 billion in January compared with $24.7 billion in December. The average discount for homes with price reductions remained at 11 percent, according to the report. In the west, which includes California, 22 percent of listings experienced price reductions.
