Market Matters

California pending home sales hold pace in May, C.A.R. reports Source: C.A.R. Building on April’s gain, California pending home sales continued to rebound on a year-to-year basis, as listings increased, primarily in seven of nine Bay Area counties, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Statewide pending home sales rose in May on an annual basis, with the Pending Home Sales Index (PHSI) increasing 3.8 percent from 131.4 in May 2015 to 136.5 in May 2016, based on signed contracts. May’s increase comes as welcome news since closed transactions declined in May despite low interest rates and high housing demand. California pending home sales declined 3.6 percent on a monthly basis compared to April, which was almost entirely due to seasonal factors. Read the full story

American consumers feel better about their financial situationSource: McKinsey & Company While McKinsey & Company’s 2014 survey found that 40 percent of Americans said they were living paycheck to paycheck, only 28 percent made that claim in 2015, according to the findings of the US Consumer Sentiment Survey. Only 23 percent of survey respondents, down from a high of 48 percent in 2009, said they are finding it harder to make ends meet than they did a year ago. Most Americans—65 percent—expressed no concern about losing their job. In general, fewer American consumers are feeling economic pressure today than at any time since 2008. But it’s still no bed of roses. Only 20 percent of Americans expressed optimism about the country’s economy. Read the full story    Presidential Elections Have Little Impact on California Housing Market Source: C.A.R. Presidential elections have historically had little or no negative impact on the California housing market, according to findings by C.A.R. In an analysis of home sales dating back to 1990, the average growth in home sales during an election year is usually either slightly higher or lower each month than in non-presidential election years. Notably, sales growth is rarely negative during an election year, and there is no evidence of a systematic negative impact on home sales or prices stemming from election season. In fact, C.A.R. found that growth in home sales at the end of an election year actually outperforms non-election years by 7.1 percentage points. In a separate poll by leading think tank The Futures Company commissioned by C.A.R.’s Center for California Real Estate, nearly three-fourths (70 percent) of survey respondents who plan to buy a home agreed that they would like the current presidential candidates to address how to make housing more affordable in their campaigns. Read the full story    Survey shows majority of Americans not getting financial advice Source: Investment News A majority of U.S. adults are not getting professional financial advice, and among those who are, almost half say their advisers don't feel like long-term partners, according to a survey from Northwestern Mutual. The survey also revealed a lack of understanding about financial planning, even among those who had an adviser. While 68 percent of people do not have a professional adviser, 45 percent do not even know where to get the help they need as they move through life's stages and need different financial solutions, according to the survey. Only 41 percent say they get tailored attention from their advisers, while 44 percent believe their advisers don't give them a complete picture of their finances. Read the full story       US existing home sales hit 9-year high Source: Reuters U.S. home resales rose in May to a more than nine-year high as improving supply increased choice for buyers, suggesting the economy remains on solid footing despite a sharp slowdown in job growth last month. According to the National Association of REALTORS®, existing home sales increased 1.8 percent to an annual rate of 5.53 million units last month, the highest level since February 2007. April's sales pace was revised down to 5.43 million units from the previously reported 5.45 million units. Sales were up 4.5 percent from a year ago. Read the full story