Un-oh! Consumer confidence, stock market, and new home sales down
In contrast to this week’s optimistic Time magazine articleon what a great economic engine California is (and we certainly agree that it is!), there has also been a slew of negative U.S. economic news that serves to dampen our enthusiasm.
Even more dire, in our opinion, is the increasing failure of banks because of the extent of toxic mortgages on their books. Two recent Associated Press articles (10-24 article,11-1 article) highlight the severity of the problem. As the general public becomes more aware of the extent of bank failures, consumer confidence is likely to continue to erode along with an accompanying unwillingness to spend.
Are these long-term economic changes or merely temporary slowdowns? We continue to be concerned about where the overall economy and especially local real estate markets are headed. We will watch the markets closely and continue to comment.
Jeff Stricker & Steve TenBroeck