A Schizophrenic Day: Home Prices Down, Stock Market Up, Confidence Way Down!
It was an amazingly confusing day today in the world of economics and real estate. The Seattle PI reported that Seattle-area house values continue to drop, falling 8.8% since last August. Nationally, the numbers are sobering: a 30.7% decline in Phoenix, 30.6% in Las Vegas, the LA, San Fransisco & San Diego markets down 25% and Miami & Tampa down 28.1 & 18.1% respectively.
There were numerous reports of a huge decline in consumer confidence. Consumer Confidence is one of those economic indices that analysts watch carefully because the majority of our economy is driven by consumer spending. According to a report by marketwatch.com “the implosion of the housing bubble, the weak job market, the bailout of the banks, and the sell-off in the stock markets have put consumer in a sour mood.” This could a problem as we approach the Christmas shopping season. Already, many retailers are bracing for chilly sales.
Then, just when I was getting depressed, PricewaterhouseCoopers announced that among major metropolitan areas, Seattle’s real estate market is the best in the nation as a prospective investment.
THEN, the Stock Market closed up almost 900 points! Whew……….I am reminded of the old curse: May you live in interesting times!
Picture by MrJuggles
