Two new positive macro-economic reports came out this week;
First, home prices show continued recovery in August. Market researcher CoreLogic says prices were up 4.6% in August from a year ago, the largest year-over-year gain in six years. Home prices are still down about 30% from their 2006 peak.
Much of the recent increase is traceable to tightening supplies of homes for sale. In August, existing single-family home sales were up 9% year over year, but the supply of listed homes for sale was down 18%, according to the National Association of Realtors. August was the sixth consecutive month that home prices were up on a month over month basis. CoreLogic expects September home prices were up 5% year-over-year, too. The housing market lately has shown a forward momentum that was not evident last year and this should help overall consumer confidence going forward.
Second, the jobs report came out today showing the U.S. economy created 114,000 new jobs in September and the unemployment rate fell to 7.8%. There is a great deal of debate over how these numbers are calculated especially in light of the number of people who have given up looking for a job or who are underemployed. Regardless, job creation is one of the most important tools we have to deal with our deficit issues and will remain a key debate topic in the Presidential election.
I would like to congratulate Janet Sexauer on celebrating her 20th anniversary with Paradigm Financial Advisors. This is a tremendous accomplishment and Janet’s dedication to exceptional client service over the years exemplifies the Paradigm philosophy and we are grateful to have Janet as part of the Paradigm team.