Consumer Spending Rises

The economy in late 2010 may have grown at a quicker pace than some analysts previously thought. The Commerce Department reported that gross domestic product (GDP) was up 3.1 percent in the last quarter of 2010, thanks in part to large rises of corporate profits.

Consumer spending was up as well, this being the eighth straight month of increases. Spending rose 0.7 percent in February. The department also reported that inflation accelerated at its fastest rate since June 2009. Incomes also rose in February by 0.3 percent. Spending, however, is expected to have slowed this first quarter of 2011.

But when it comes to the housing, the good news isn’t spread so liberally. Residential vacancies, largely steeped by foreclosed homes, are depressing sale prices and property values.

And future numbers don’t look promising. Vacancies are up 13 percent over last week’s report, and up 12.1 percent from 2007 levels.

There was one bright spot in the market this week, though. Pending home sales, compiled by a National Association of Realtors’ survey, were up by 2.1 percent in February over the month prior. And while this is 8.2 percent below figures from February 2010, they are still a promising trend.

Lawrence Yun, NAR chief economist, says it’s important to look at the market with broad strokes. “Month-to-month movements can be instructive, but in this uneven recovery it’s important to look at the longer term performance,” he said. “Pending home sales have trended up very nicely since bottoming out last June, even with periodic monthly declines. Contract activity is now 20 percent above the low point immediately following expiration of the home buyer tax credit.”

Regionally, the area with the largest increase was the West, up by 7.0 percent. It is the only region experiencing higher levels of pending sales than a year prior. The Midwest wasn’t far behind, with a 4.0 percent rise for the month.

“We may not see notable gains in existing-home sales in the near term, but they’re expected to rise 5 to 10 percent this year with the economic recovery, job creation and excellent affordability conditions providing confidence to buyers who’ve been on the sidelines,” Yun said.
Carla Hill - Realty Times April 2011

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Earth Day April 22nd

The first Earth Day, catalyzed by an increasing public concern about environmental issues, drew 20 million demonstrators and put environmental crises on the nation’s political agenda.

Earth Day was envisioned in 1969 by Gaylord Nelson, a U.S. Senator from Wisconsin and champion for the environment. Having just toured the devastated Santa Barbara coastline after a major oil spill, Nelson was inspired by recent teach-ins being held in protest of the Vietnam war.

“It suddenly occurred to me,” he said in a speech years later, “Why not have a nationwide teach-in on the environment? In a speech at Seattle in September, I formally announced that there would be a national environmental teach-in sometime in the spring of 1970.”

The Earth Day concept built momentum over the next few months, garnering nationwide press coverage and grassroots support. Gaylord was stunned when 20 million people took part on April 22, 1970. American Heritage magazine called Earth Day “one of the most remarkable happenings in the history of democracy.”

The first Earth Day marked the beginning of a new era in environmental politics, an era that saw the passage of the Clean Water Act, the Clean Air Act, and the Endangered Species Act. The success of Earth Day fulfilled Senator Nelson’s goal of “a nationwide demonstration of concern for the environment so large that it would shake the political establishment out of its lethargy and, finally, force this issue permanently onto the national political agenda.”

So what are you doing this year for Earth Day? Go to http://wilderness.org/content/earth-day-what-are-you-doing-year

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