Residential construction spending declined 12.3 percent compared with one year earlier , while the value of nonresidential construction activity rose 12.7 percent. On the home sales front, the median price of an existing single family home in California increased 3.7 percent in December and sales decreased 15.3 compared with the same period a year ago. The market continues to level out as buyers and sellers search for a common ground in todays more balanced environment. Sales peaked in July and August of 2006 and have since declined for the remainder of the year. Although time on the market remains higher than it was a year ago competitively priced homes continue to sell well. With all of the doom and gloom out of the way American consumers continue to indicate a higher level of confidence in the nation’s economy this month due in part to a more favorable job market. The organization’s Consumer Confidence Index increased for the second consecutive month in January, rising to 110.3. Local and national mortgage companies are seeing a significant increase in escrows for the first part of January. Home and land sales are not as brisk as they were a few years ago but real estate is definetely selling and remember we live in California where land has traditionally been a great investment.
