A week of weakness seen for U.S. economy
Analysts bearish on data as economy 'perched on the edge of a cliff'
SAN FRANCISCO (MarketWatch) -- "Perched on the edge of a cliff." That's how one economist describes the U.S. economy as the markets get ready for a busy week of data, including numbers about the already damaged U.S. housing market, orders for durable goods and personal income and spending. "What we're looking for is confirmation that indeed the U.S. economy is slowing sharply in the fourth quarter," says Ellen Zentner, an economist at Bank of Tokyo-Mitsubishi UFJ. Zentner said that within a month, it could be apparent whether the economy is slipping into a recession or not. "The U.S. economy is really perched on the edge of a cliff right now," says Zentner. Housing has been a big drag on the economy and this coming week's data forecasts don't offer any hope that the housing outlook will improve. Analysts surveyed by MarketWatch are expecting existing home sales, for example, to drop to a seasonally adjusted annual rate of 4.99 million in October from an eight-year low of 5.04 million in September. The existing home sales report is due out at 10 a.m. on Tuesday.
On Thursday at 10 a.m., analysts are forecasting that new home sales for October will fall to a seasonally adjusted annual rate of 730,000 from 770,000 a month earlier. "We don't expect any good news on housing anytime soon, specifically on the demand front," says Ryan Sweet of Moody's Economy.com. Demand will remain weak for the remainder of the year and well into 2008, he says. In other housing-related data, October construction spending is expected to fall by 0.2% following a modest rise of 0.3% in September. That release is scheduled for 10 a.m. Friday. Two home-price measures are due out this week also: the Case-Shiller Home Price Index on Tuesday and the house price index from the Office of Federal Housing Enterprise Oversight on Thursday. For the third quarter, the Case-Shiller index is expected to fall by 5.01%, while the Ofheo index is expected to be flat in the third quarter.
Federal Reserve officials believe a substantial decline in home prices is a big risk to the economy, according to forecasts released for the first time by the Fed on Tuesday. The Fed's forecasts, combined with the summary of its October meeting, appeared to show more concern about slower growth than higher inflation. This focus on weakening growth differed from the FOMC statement released at the end of the committee's October meeting, analysts said. However, many analysts are skeptical the Fed will cut rates at its next meeting on Dec. 11. "We still think the Fed will stand idle at the December FOMC meeting, but it has become a much closer call," said Sweet of Moody's Economy.com. "Growth is fading and uncertainty is growing." Jim O'Sullivan of UBS believes that the Fed will continue to cut rates, including in December. "I suspect they're going to be surprised at how much weakness there is" in the data this week, says O'Sullivan.
In particular, he said, consumer spending and the labor market will bear watching. Economists say the labor market may be weakening after a government report on Wednesday showed more Americans continuing to receive jobless benefits. The number of Americans receiving state jobless benefits increased 7,000 to 2.57 million in the week ending Nov. 10, the Labor Department reported. Initial jobless claims fell to 330,000 but analysts are watching to see if they get worse. "Recent data on initial jobless claims suggest layoff activity is gradually accelerating as the full effects of the fallout from tighter credit conditions and the housing recession are realized," notes Sweet. He says a sustained run of more than 350,000 initial claims coupled with continued softness in hiring "would signal much deeper issues in the labor market." The Labor Department will report weekly jobless claims on Thursday at 8:30 a.m. Eastern.
The pace of consumer spending is also expected to have fallen in October. On average, analysts surveyed by MarketWatch are expecting consumer spending to increase by 0.2% in October, down slightly from its 0.3% gain in September. Sustained weakness in consumer spending, says Sweet, "could be the catalyst that tips the economy into a recession." While the jury is still out on whether to expect a recession, the Fed is at least expecting the U.S. economy to slow by more than previously thought in 2008. But the central bank is predicting inflation will remain tame. In the forecasts released on Tuesday, Fed officials said growth would slow to a range of 1.8% to 2.5% next year, down from growth around 2.45% in 2007.
For more housing info, go to http://www.ColoradoDreamHomes.net
Tuesday, November 27, 2007
Sunday, October 21, 2007
New Listing!
Offering luxurious living at a tremendous value, this beautifully appointed custom two-story home sits on a wooded .5 acre cul-de-sac site in prestigious Timber Canyon, a highly desireable luxury enclave of homes minutes to the Outlet Mall at Castle Rock and I-25. A full stone and stucco façade combines with a tile roof to produce a virtually maintenance free exterior. Whispering Ponderosa Pines and lush Gambel Oak surround this home, and you can enjoy natures brilliance from either of 2 Trex decks. If you ever craved a luxury home with 7 bedrooms, 6 baths, main floor office, upstairs loft, 2 story family room with a wall of windows, and fully finished walkout basement, your search is over! The professional gourmet kitchen is custom-fitted with top of the line features like rich cherry cabinetry, cherry flooring (also covering most of the entire main level), double ovens, trash compactor, butlers pantry, and large slab granite island with 5 burner gas cook top. The main floor master boasts 2 story ceiling, cozy gas fireplace, and large luxurious bath. This home is all about living large with gracious spaces. How about these secondary bedroom sizes; 18 x 22, 17 X 18, 17 X 20, 13 X 19, 12 X 15, 11 X 14. The room sizes speak for themselves. The lower family room is 22 X 27 with a third fireplace and private patio. Plus there is still a large unfinished portion of the basement that could be turned into a home theater. This never-lived-in spec home is in perfect condition, and ready to occupy immediately. Check the comps in this neighborhood and you will find that this home would appraise for hundreds of thousands more! Claim the warmth and charm of this home for yourself...before it is gone!
Don’t let someone else live YOUR dream. Come inside and experience this luxurious lifestyle yourself!
Call Jeff Kroll today for a private showing at 303-717-1492!
More pix are at www.ColoradoDreamHomes.net!
New Listing!
Offering peaceful tranquility on 5 acres that is a mere 12 minute commute to downtown Parker, this gorgeous 2005 custom home features 4 bedrooms, 3 baths, 2901 finished square feet, and all the high caliber designer finishes you’d expect. Located just over the Elbert County line (where taxes are lower!) this lot fronts dedicated open space, with amazing forested valley views. Although professionally landscaped with many large Maples, Austrian pines, flowering crabapples, flower beds and a garden area, the show stopper of the homes’ exterior is the new flagstone patio and outdoor living space, ideally designed for mega entertaining with professional-grade outdoor kitchen, integrated wet bar, and cozy outdoor fire pit to snuggle up with loved ones during cool evenings. If you are a discriminating buyer who appreciates quality craftsmanship, you’ll see it everywhere. Anchoring the home is a vaulted great room with built-in entertainment center. The kitchen features 52” upgraded maple cabinets with pewter glaze, Brazilian Rosewood floors, Frigidaire Gallery Series appliances, large pantry, breakfast nook, tile backsplash, and granite countertops. The master bedroom boasts a see-thru fireplace, vaulted ceiling, 2 walk-in closets, and private patio access. The opulent 5 piece master bath features tile floors and countertops, antiqued maple cabinets, and corner Jacuzzi tub. You’ll revel in the spacious “flex room” above the garage, which could be used for a variety of uses; a home theater, second family room, artists studio, 5th bedroom, executive study...whatever your heart desires! With dormer windows flanking each side and wired for surround sound, it is a unique and special space. Speaking of “flex space”, this home boasts one of the largest walkout basements you will find, which at 2501 SF, could provide for a world of possibilities! It is as open as you could ever want a basement to be...with enough space for another house down there! Its unbelievable. You'll feel the quality in all the custom Kraft Maid cabinets, built with finger-jointed corners(of course), that also roll effortlessly. So make sure you open all of them up when you are in there! Other amenities include: dramatic see-thru slate fireplace, formal dining room with large arched window, central vac system (check out the crumb sweeper in the kitchen!!), air (of course), bull nose corners, 10’ ceilings, extra deep 25' three car garage with insulated doors, extra large laundry room loaded with cabinets and built-in ironing board, whole-house water filtration system, 50 gallon hot water heater, 3 phone lines installed, full sprinkler/drip system to all trees, outside 30 amp/120V outlet for RV's and 220V outlet for a hot tub installed, Travertine tile flooring, 6 ceiling fans, covered front Trex deck to soak in the views…the features are endless! Distinctive architecture completes the drama, resulting in a stunning getaway you’ll cherish and value!
Don’t let someone else live YOUR dream. Come inside and experience this luxurious lifestyle yourself!
Special financing rates apply for this home through Martin Funding. Call Brandon Martin at 720-296-0198.
Call Jeff Kroll today for a private showing at 303-717-1492!
More pix are at www.ColoradoDreamHomes.net!
New Listing!
Ever wanted to live in the mountains? This may be the next best thing. A private retreat awaits the buyer of this home, which offers 3 beds, 2 baths, and 1847 finished square feet. Located on a 2.27 acre lot in Ponderosa Park, majestic 100 year old ponderosa pines combine with apple trees, gambel oak, and other evergreens to produce an enchanting setting unmatched in the area. The privacy is first defined as you drive up to the property...the home can’t be seen from the road. The property is fenced and cross-fenced, and zoned for horses with a 2 stall barn, allowing for horse enthusiasts to saddle up whenever they please. And the absence of a pesky HOA reduces hassles and costs if you are the lucky buyer of this home. This home is complete with a spacious great room with oak hardwood floors and a wood burning stove. A warm and soothing sun room with wood paneled ceiling provides both ample light and forest views, and opens out to a generous, newly stained wrap-around porch with hot tub, providing the perfect place to unwind or entertain. The kitchen features hardwood floors, a solid concrete countertop surface and stainless steel sink. A walk-in pantry gives way to a special feature of this home; stairs walk up to a full attic space for storage with plenty of room to move around. So no dealing with silly pull-down stairs or crawl space walls to climb over to get to your stuff! The lower level features a large room that could be used in any manner you choose; a home office, a 4th bedroom, home theater, or rec room. The brand new 24 X 30 detached garage is a perfect compliment to the home, where the car enthusiast or tinkerer can work in there with room to spare. Adjacent to the attached one car garage is a built-in work shop or storage area as well, providing yet another flex space for tinkering, gardening, or storage. Other amenities include a garden area, detached shed, 3 ceiling fans, and new roof.
Don’t let someone else live YOUR dream. Come inside and experience this special lifestyle yourself!
Special financing rates apply for this home through Martin Funding. Call Brandon Martin at 720-296-0198.
Call Jeff Kroll today for a private showing at 303-717-1492!
More pix are at www.ColoradoDreamHomes.net!
Subscribe to:
Posts (Atom)