Housing in California is a tale of two markets, with the median home price expected to increase while home sales projected to fall. The median price in California will increase 3.3% in 2010 from this year’s level, but home sales will dip 2.3%, the Los Angeles-based California Association of Realtors (CAR) said in the group’s 2010 CaliforniaHousing Market Forecast. The median home price in the state will increase to US$280,000 next year, up from 271,000 this year. Home sales, however, will drop to 527,500 units in 2010, down from a projected 540,000 units this year, according to the forecast. Read more
I am Bullish long term, the internal action of the market tells me that this correction is acting normally, and will soon yield to the long term up-trend.
March 9 to early June was red hot, with the (lagging) DJIA advancing 37% and the S&P 500 running up 41%.Since then, we are having a textbook one-month rotational correction, sending the DJIA and the S&P 500 South by 6% and 7% respectively.
The Big Q: What does this mean?
The Big A: From my POV, it is a buy signal. This new Bull Market is acting just like every previous Bull Market.
A unit of US Bancorp and privately-held SolarCity has teamed up to wire homes and businesses in California, Oregon and Arizona, with no upfront costs, while taking advantage of government tax credits. The agreement, for which no value was disclosed, allows US Bancorp Community Development Corp., a unit of US Bancorp, to take advantage of tax breaks including a solar tax credit. In return, the bank pays for the purchase and installation of solar power by SolarCity, which markets and maintains the systems. Homeowners and businesses purchase the electricity generated from their roofs. “We are able to offer a home owner or a business owner a solar financing solution that costs them less than if they bought the same amount of electricity from the utility,” said Lyndon Rive, chief executive of SolarCity, from company headquarters in Foster City, Calif. Homeowners also may choose to pay the cost of the installation, which can run to US$20,000 and has a payback period for eight to 10 years, Rive said. Darren Van’t Hof, vice president of the US Bancorp unit said in a telephone interview from St. Louis that the two companies have created a tax equity fund which finances the solar lease plan. The joint fund reaps the benefits of the tax breaks, sharing the revenue stream between the bank and SolarCity, he said. The company takes care of maintenance for 15 years, after which a homeowner can renew the plan, upgrade, buy the system or have it removed, Rive said. Rive said the company already has a six-month backlog and the agreement, signed a few days ago, will allow it to whittle away that backlog and sell more systems.
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Paul A. Ebeling, Jr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Ebeling has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis.
He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
