California Market Report 

California Market Analysis 

Now that interest rates are at record lows, prices are down 30 to 40 percent from their record highs, and there is ample inventory, the real estate market is poised for some long-term stability. An improvement in our national economy is all that is needed to insure this long-term stability for the real estate market. The real estate market has far fewer moving parts than the vast national economy which makes it easier to predict.  Even though the national economy is complex and often very hard to predict, a few indicators can make this process easier.

These days economists are paying special attention to the employment market (jobs), the stock market, consumer confidence, consumer price index (inflation), and housing sales. In August there was a net gain of 54,000 jobs. The Dow Jones Industrial Average started August at 10,150 and ended Friday, September 10th at 10,462. This is notable because very few economists predicted this "mild rally". The Consumer Confidence Index now stands at 53.5, up from 51.0 in July. Inflation is currently predicted to be 1.2% for 2010. A 1.2% inflation is considered very low and alleviates the fear of inflation in the near future. Housing sales nationally will most likely remain at or near 2009 levels which were a vast improvement over 2007 and 2008. Leading indicators would suggest that our economy is in a slow but steady recovery. The best way to describe what we should be feeling is - "cautious optimism."