Keith & Jason Renno

Last Week in the News ________________________________________ On Monday, July 27, the Commerce Department reported new home sales jumped 11% in June to a seasonally adjusted annual rate of 384,000 from an upwardly revised rate of 346,000 in May. It was the largest monthly increase in more than 8 years. Economists had expected a sales pace of 360,000 units. The Standard & Poor’s / Case-Shiller 20-city housing price index dropped 17.1% from May 2008 to May 2009. However, there was a 0.5% increase in housing prices in May compared to the previous month. It was the first rise in the monthly index since July 2006. The consumer confidence index fell to 46.6 in July from 49.3 in June. Economists had expected a slight decrease to 49. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence. Orders for durable goods — items expected to last three or more years — fell 2.5% in June, the first decrease in three months. Economists had anticipated orders for durable goods would fall 0.6%. However, excluding automobiles and aircraft, durable goods actually rose a robust 1.1%, a much better performance than the flat reading economists had expected. Initial claims for unemployment benefits rose by 25,000 to 584,000 in the week ending July 25. The figure was higher than the 575,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending July 18 decreased by 54,000 to 6.197 million, the lowest level since April. The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — decreased at an annual rate of 1% in the second quarter of 2009. This follows a 6.4% decline in the first quarter of 2009. Economists had expected a slightly larger 1.5% decrease. Upcoming on the economic calendar are reports on construction spending on August 3, pending home sales on August 4 and factory orders on August 5.

Last Week in the News On Tuesday, July 14, the Labor Department reported that the producer price index, which tracks wholesale prices, rose 1.8% in June, following a 0.2% increase in May. The increase was double what economists expected and largely attributed to rising energy costs. Gasoline prices increased 18.5% and home heating oil rose15.4%. Retail sales rose 0.6% in June, following a 0.5% increase in May. The gains were largely fueled by auto purchases and the rising cost of gasoline. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending July 10 rose 4.3% to 514.4. Purchase volume fell 9.4% to 258.8. Refinancing applications jumped 17.7% to 2009.4. The Labor Department reported that consumer inflation rose a seasonally adjusted 0.7% in June, slightly higher than the 0.6% economists had forecast. It was the biggest monthly gain since July 2008 and was driven by the increase in gasoline prices. The Federal Reserve reported that industrial production at the nation’s factories, mines and utilities fell 0.4% in June, compared to a revised 1.2% decrease in May. Economists had expected a decline of 0.7% in June. The overall factory-operating rate was down to 68% of capacity in June, the lowest level since record-keeping began in 1967. Initial claims for unemployment benefits fell by 47,000 to 522,000 in the week ending July 11 from a revised figure of 569,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending July 4 plunged by a record 642,000 to 6.27 million, the lowest level since mid-April. The National Association of Home Builders/Wells Fargo housing market index rose two points in July to 17. An index reading below 50 indicates negative sentiment about the housing market. Upcoming on the economic calendar are reports on the index of leading economic indicators on July 20 and existing home sales on July 23. Please contact us to know how this will affect the Santa Clarita Real Estate market.

Social networking sites are a great way to nurture your professional network in Santa Clarita, CA. For business professionals, the most popular are Facebook and LinkedIn. These tools greatly facilitate your ability to meet people, exchange information on a consistent basis, build relationships and position yourself as an industry expert.

Getting started is easy. On Facebook, you simply fill out a profile and upload a picture. LinkedIn is similar in that you fill out a profile and upload a photo, but because it is mostly business oriented, users typically include a synopsis of their resume.

Facebook is largely used as a way to notify a group of people about something you want to promote. Users do this by creating postings, uploading photos and sharing links and videos. With over 200 million members worldwide, Facebook truly is a global market. And it's not just people who have profiles and networks. Places, products, companies, services, stores, restaurants, etc., also have profiles and networks. For example, Starbucks Coffee Company has a profile and a network with 3,385,090 fans; Lamborghini has 807,270 fans.

LinkedIn is an interconnected network of experienced professionals from around the world, representing 170 industries and 200 countries. You can find, be introduced to, and collaborate with professionals who you need to work with to accomplish your goals. LinkedIn also has some proprietary business tools. Polls is a market research tool that allows you to collect data from your connections on LinkedIn. Results to your research questions can be broken down by company size, job function, age and gender.

The easiest way to extend your professional network is to establish or join a network based on your business or industry category. Also, both Facebook and LinkedIn allow users to upload contacts from Outlook automatically, as well as contacts from web mail accounts such as Hotmail and Gmail. Users can immediately identify which friends and associates are members of the network.

Last Week in the News

On Tuesday, June 30, the Conference Board reported that its consumer confidence index fell to 49.3 in June from a slightly revised 54.8 in May. Economists had expected an increase to 55. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Standard & Poor's / Case-Shiller 20-city housing price index dropped 18.1% from April 2008 to April 2009. It was the third straight month the index didn't post record drops, indicating that the slump in home values might be easing.

The Institute for Supply Management reported the monthly index of manufacturing activity rose to 44.8 in June from 42.8 in May. Though any reading below 50 signals contraction, it was the sixth consecutive monthly increase from a record low of 32.9 in December.

The Commerce Department reported total construction spending fell 0.9% in May. Economists had expected a 0.5% decline. Meanwhile, construction spending in April was downwardly revised to a 0.6% gain. Also, a March increase of 0.4% was revised to a 0.4% drop.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 0.1% to 90.7 in May from an upwardly revised 90.6 in April. It was the fourth consecutive monthly increase after the index hit a record low in January.

The Commerce Department reported factory orders rose 1.2% in May, after a revised 0.5% increase in April. It was the first back-to-back increase in nearly a year.

The Labor Department reported the jobless rate rose to 9.5% in June from 9.4% in May. That's the highest level since August 1983.

Upcoming on the economic calendar are reports on consumer credit on July 8 and wholesale trade on July 9.

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Top 7 Reasons to Buy Your First Home Today

1. Free Money. The $8,000 tax credit for first time home buyers is valid through December 1, 2009. This is a special tax credit from the government that you don't have to pay back, as long as you stay in the home for at least 36 months.

2. Affordability. Based on recent property declines and current interest rates, home affordability has not been higher since it was first tracked over 40 years ago. Your grandparents couldn't have received a better interest rate than you can today.

3. Tax Breaks. The IRS allows you to deduct the interest you pay on your mortgage, your property taxes and, in many cases for those who qualify, some of the costs to buy your home and mortgage insurance. Owning a home is a great way to lower your tax bill.

4. Build Wealth. Unlike paying rent, with each mortgage payment you make, you build equity and you decrease your income tax liability. Owning a home is still the best long-term investment.

5. Appreciation. As home prices have fallen precipitously in today's tough economy, the basis for realizing appreciation in future years is very strong. Historically, even with other periods of declining value, home prices have exceeded consumer inflation. From 1972 through 2005, home prices increased on average 6.5%, according to the National Association of Realtors®.

6. Stability. Knowing you can establish roots and raise a family in one location, free of the desires or needs of your landlord to sell the property you are living in. This is something no other investment provides. You can't live in a stock, and you can't raise your kids in a bond.

7. Independence. Enjoy the freedom to do what you want to your home. After all, it's yours to do what you wish. And, with any improvements you make, you have the ability to benefit from your investment. Try that with an apartment!