Purchases of new U.S. homes rose in March, capping the best quarter for the industry since 2008 and providing more evidence the housing recovery will be sustained.

Sales of single-family properties climbed 1.5 percent last month to a 417,000 annual pace from a 411,000 rate in February, Commerce Department figures showed today in Washington. The median estimate of 76 economists surveyed by Bloomberg called for March sales to rise to 416,000.

A dearth of existing properties is encouraging builders to undertake new projects that will keep fueling the economy. Mortgage rates close to record lows, higher home values and rising household formation are helping lay the groundwork for increased buyer traffic in 2013.

“The housing sector continues to be the bright spot for the economy,” said Ward McCarthy, chief financial economist at Jefferies LLC in New York, who projected a 418,000 pace of home purchases. “Inventories are light, which means that builders are going to keep building.”

Home sales averaged a 424,000 annual rate in the first three months of this year, the strongest since the third quarter of 2008.

Stocks maintained gains after the figures and as earnings from Travelers Cos. to Netflix Inc. beat estimates. The Standard & Poor’s 500 Index rose 0.8 percent to 1,575.29 at 10:18 a.m. in New York.

Economists’ estimates ranged from a March sales rate of 395,000 to 435,000. February was previously reported at a 411,000 annual rate.

Rising Prices

New-home purchases were 17.6 percent higher in March than the same period in 2012 on an unadjusted basis, today’s report showed. The median price of a new home climbed 3 percent last month from a year ago to $247,000.

Purchases increased in two of four regions in March, with a 20.6 percent gain in the Northeast and a 19.4 percent advance in the South. Sales decreased 20.9 percent in the West and 12.1 percent in the Midwest.

Builders are responding to increased demand by making more homes available. There were 153,000 new houses on the market at the end of March, the most since November 2011. At the current sales rate, the supply would last 4.4 months, the same as in February.

Housing Starts

Housing starts climbed to a 1.04 million annual rate, the fastest since June 2008, the Commerce Department said last week.

At the same time, builder optimism has faded, reflecting higher costs for raw materials, limited developed land and tight credit conditions. The National Association of Home Builders/Wells Fargo index of builder confidence fell this month to its lowest level since October, data showed April 15.

Builders were still more optimistic about the future, with a gauge of their sales outlook for the next six months increasing to the highest level since 2007.

Mortgage rates hovering near record lows and a healing job market may keep providing a spark for the industry. The average rate for a 30-year fixed mortgage fell to 3.41 percent in the week ended April 18, the third consecutive drop, according to Freddie Mac. The rate slid to an all-time low of 3.31 percent in November.

Existing Homes

Figures out yesterday from the National Association of Realtors showed previously owned homes sold at a 4.92 million rate in March, down from a 4.95 million pace the previous month.

A lack of inventory of more affordable existing properties has driven up the cost of such homes, making newly-constructed units more attractive to potential buyers. The NAR report showed the median price of an existing home rose 11.8 percent, the most since November 2005, to $184,300 last month from a year earlier.

Sales of new homes are considered a timelier barometer than purchases of previously owned dwellings, which are calculated when a contract closes. Newly constructed houses accounted for about 7 percent of the residential market in 2012, down more than 15 percent before the 2007-2009 recession began.

The strength in housing is spreading to other parts of the economy.

“The majority of the data still points to a robust and sustainable recovery,” Christopher Connor, chief executive officer of Sherwin-Williams Co. (SHW), said during an April 18 earnings call. “Our sales results in the first quarter support that conclusion.”

Sales at the Cleveland-based company, the largest U.S. paint retailer, rose 1.4 percent in the first quarter from a year earlier to reach a record $2.17 billion.

To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

 Housing Starts in U.S. Climb as Building Permits Pick Up

New U.S. home construction rose in February and building permits climbed to the highest level in almost five years, adding to signs of progress in the housing market that’s helping boost the economy.

Builders broke ground on 917,000 homes at an annual rate, up 0.8 percent from a revised 910,000 pace in January that was higher than initially estimated, the Commerce Department reported today in Washington. Building permits, a proxy for future construction, advanced 4.6 percent to 946,000, the strongest since June 2008.

Confidence is being restored to the housing market as property values stabilize, the employment outlook brightens and mortgage rates hover around record lows. An easing of bank lending conditions would help bring home ownership within reach of more Americans and stoke bigger gains in home construction.

“Housing continues to be a bright spot for the economy, and this is a good report,” said Anika Khan, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, a subsidiary of the largest U.S. mortgage lender. “Permits definitely showed a big jump. As long as that is outpacing starts, we’ll likely see another positive month next month.”

Stock-index futures held gains after the figures, with the contract on the Standard & Poor’s 500 Index expiring in June climbing 0.2 percent to 1,549.8 at 8:46 a.m. in New York.

The median estimate of 81 economists surveyed by Bloomberg called for 915,000 starts. Forecasts ranged from 872,000 to 1 million. The prior month’s figure was revised from a previously reported 890,000 pace.

Building Permits

Applications for building permits increased last month from a 904,000 annual rate in January and compared with a 925,000 median forecast. A higher level of permits compared with starts may be a sign that home construction will pick up.

Single-family building permits rose 2.7 percent in February to a 600,000 annual rate.

Related story: Strategies for the Spring Housing Scrum

Construction of one-family properties climbed 0.5 percent to a 618,000 rate, the highest since June 2008, from 615,000 the prior month.

Work on multifamily residences such as apartment buildings rose 1.4 percent to an annual rate of 299,000.

Two of four regions showed gains in February starts, led by a 37.5 percent jump in the Midwest. New construction rose 18.4 percent in the Northeast. Starts decreased 7.2 percent in the West and 5.7 percent in the South. The drop in the South reflected fewer starts of multifamily units.

Last Year

Construction companies began work on 780,600 homes in 2012, a 28.2 percent increase from 2011 and the third straight annual gain. Even with the yearly improvement, housing starts remain short of the 2.07 million in 2005, a three-decade high reached at the peak of the boom.

As builders enter the spring selling season, the Federal Reserve may be set to extend it record monetary policy stimulus that has helped keep mortgage costs low and allowed for a rebound in housing, the industry that was at the center of the financial crisis.

Fed officials, who begin a two-day meeting today, have said they will keep their benchmark lending rate near zero as long as unemployment remains above 6.5 percent and inflation is projected to be no more than 2.5 percent. They also said during a January meeting they would keep buying $40 billion per month in mortgage bonds and $45 billion in Treasuries.

Housing is “a sector with huge upside potential for GDP and job creation,” said Jason Schenker, president of Prestige Economics LLC in Austin, Texas. “The upside from housing is probably the only thing that’s going to provide tailwinds strong enough to realize the substantial improvement to the labor market that the Fed is hoping for.”

Mortgage Rates

For those who qualify for home loans, cheaper borrowing costs are attracting buyers. The average rate on a 30-year, fixed-rate purchase loan was 3.63 percent last week, compared with 3.92 percent a year ago, according to McLean, Virginia- based Freddie Mac. The 30-year rate reached a record-low 3.31 percent in November.

Limited inventories and resilient sales are driving orders at builders such as PulteGroup Inc. (PHM) and Lennar Corp. (LEN) At the same time, lenders have imposed stricter standards on mortgages, an artifact of the subprime collapse that pushed the U.S. economy into its last recession, said Ara Hovnanian, chairman and chief executive officer of builder Hovnanian Enterprises Inc. in Red Bank, New Jersey.

‘Stricter’ Standards

“On the whole, we’re still seeing definitely stricter guidelines,” Hovnanian said on a March 6 earnings call. “Eventually, the pendulum, which has swung to the overcorrection mode in terms of difficult qualification because of what happened with subprime, that pendulum will come back to the middle and that should add a further boost to the housing recovery a little later in the cycle.”

Residential construction has added to economic growth since the second quarter of 2011, gains that filter to other parts of the economy as well, from appliance makers such as Whirlpool Corp (WHR). to retailers such as Lowe’s Cos.

Yesterday, a report showed that builder sentiment paused in March. The National Association of Home Builders/Wells Fargo index of confidence dropped by 2 points to 44. Readings below 50 mean more respondents said conditions were poor.

The group’s gauges of the sales outlook and customer traffic improved, according to the report, while an index of present single-family home sales fell to a five-month low.

To contact the reporters on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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Homebuilding Probably Climbed With Sales: U.S. Economy Preview

Sales of previously owned homes and construction of new houses probably accelerated in February, highlighting the strength in residential real estate that’s helping propel the U.S. expansion, economists said before reports this week.

Purchases of existing properties increased to a 5 million annual rate, the strongest since November 2009, and housing starts rose to a 915,000 pace, according to the median forecasts in a Bloomberg survey. Other data may show an index of leading economic indicators advanced for a third straight month.

Americans are gaining confidence in the housing market as home values stabilize, the outlook for employment brightens and mortgage rates hover near record lows. Federal Reserve officials meeting this week will probably adhere to their plan of record monetary policy stimulus that’s reduced borrowing costs and helped sustain the expansion.

“Housing has definitely improved,” said Sean Incremona, senior economist at 4Cast Inc. in New York and the top forecaster for housing starts, according to data compiled by Bloomberg. “There’s progress and it looks to be sustainable. Cheap financing is definitely helping. We can thank the Fed for that.”

Limited inventories and resilient sales are benefiting builders including PulteGroup Inc. (PHM) and Lennar Corp. (LEN), showing housing will keep contributing to growth this year after emerging as an economic bright spot in 2012.

Last Year

Builders began work on 779,900 homes last year, a 28.1 percent increase from 2011 and the most in four years. Housing starts remain well below the 2.07 million in 2005 at the peak of the housing boom.

The Commerce Department will issue its February housing starts data on March 19. The National Association of Realtors report on sales of previously owned homes is due March 21.

Existing-home sales reached a peak of 7.25 million in September 2005 before falling to a low of 3.45 million in July 2010, after the subprime-lending collapse pushed the economy into its last recession. The Realtors group has said recent sales have been restrained by a lack of properties on the market.

Lean inventories and a pickup in homebuyer traffic have boosted builder sentiment. A report tomorrow from the National Association of Home Builders and Wells Fargo is projected to show an increase in confidence in March.

The Standard & Poor’s Supercomposite Homebuilding Index (S15HOME) has surged 59.4 percent in the last year, compared with an 11.3 percent gain in the broader S&P 500. (SPX)

Foreclosure Filings

Rising home sales are pushing up prices and reducing mortgage defaults. Foreclosure filings, including default notices, auctions and repossessions, were down 25 percent in February from a year earlier, according to a March 14 report from RealtyTrac Inc., an Irvine, California-based data company.

At the same time, some areas of the country are struggling to improve. New York, New Jersey, Florida and Nevada are among 16 states that reported an increase in foreclosure starts in February, according to RealtyTrac.

AV Homes Inc. (AVHI), a developer based in Poinciana, Florida, that specializes in adult communities, reported a fourth-quarter loss driven by falling property values in Florida and Arizona. Still, the company is purchasing land for new developments as buyers return to the market, President and Chief Executive Officer Roger Cregg said.

Regaining Confidence

“The value of their largest asset, their home, has diminished and that has caused them to lose confidence and delay their move and purchase of another home,” Cregg said on a March 15 earnings call. “We believe that as home values continue to rise, they will regain their confidence and be returning to the market.”

To ensure housing, the labor market and the rest of the economy keep improving, Fed policy makers are unlikely to scale back their $85 billion in monthly asset purchases, known as quantitative easing, at the conclusion of the two-day meeting on March 20, according to Roberto Perli, a managing director at International Strategy & Investment Group Inc. in Washington and a former economist for the Fed’s Division of Monetary Affairs.

“Based on recent statements by various policy makers as well as the content of the minutes of previous meetings, changes to the pace of QE will not be seriously on the table,” Perli wrote in a March 15 note to clients.

Borrowing costs remain favorable. The average rate on a 30- year fixed mortgage was 3.63 percent in the week ended March 14, down from 3.92 percent a year ago, according to McLean, Virginia-based Freddie Mac. (FNMA)

Another report this week from the Conference Board, a New York-based research group, is projected to show the economy will keep expanding into the second half of 2013. The index of leading indicators rose 0.3 percent in February after a 0.2 percent gain a month earlier, figures on March 21 may show, according to the median forecast in a Bloomberg survey.

 Bloomberg Survey =============================================================== Release Period Prior Median Indicator Date Value Forecast =============================================================== NAHB Housing Index 3/18 March 46 47 Housing Starts ,000’s 3/19 Feb. 890 915 Housing Starts MOM% 3/19 Feb. -8.5% 2.8% Building Permits ,000’s 3/19 Feb. 904 923 Building Permits MOM% 3/19 Feb. -0.6% 2.1% Initial Claims ,000’s 3/21 16-Mar 332 344 Cont. Claims ,000’s 3/21 9-Mar 3024 3063 Markit Manu. PMI 3/21 March P 54.3 54.8 FHFA HPI MOM% 3/21 Jan. 0.6% 0.7% Philly Fed Index 3/21 March -12.5 -3.0 Exist Homes Mlns 3/21 Feb. 4.92 5.00 Exist Homes MOM% 3/21 Feb. 0.4% 1.6% LEI MOM% 3/21 Feb. 0.2% 0.3% =============================================================== 

To contact the reporter on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz in Washington at cwellisz@bloomberg.net

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Housing Rebound Is Providing Bigger Boost to U.S. Labor Market Construction hiring jumped in February by the most in almost six years, highlighting the benefits to the U.S. economy from a revitalized housing market. Builder payrolls surged by 48,000 workers, the most since March 2007 and the ninth straight increase, Labor Department data showed today in Washington. The gain accounted for 20 percent of the 236,000 increase in total employment. The jobless rate fell to a four-year low of 7.7 percent. Orders at builders including D.R. Horton (DHI) Inc. and Hovnanian Enterprises Inc. (HOV) are spurring demand for contractors -- from electricians and roofers to plumbers and masons. The industry that was at the center of the financial crisis has emerged as an economic bright spot as Americans take advantage of cheap borrowing costs and improving access to credit. The construction gains are “a very positive sign,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina, a unit of the largest U.S. mortgage lender. “The overall flow of the economy is really improving, and I’m encouraged that housing is continuing to kick in.” Silvia estimates as many as 30,000 construction workers a month will find jobs in the next year. The industry, which includes homebuilding, commercial building and civil engineering, took on 154,000 workers from September through February, the strongest six months gains in employment since the period ended April 2006. Specialty Trade Payrolls at specialty-trade contractors, who perform work such as pouring concrete and installing electrical wire, have climbed 106,000 in the last six months, accounting for about 69 percent of the gain in total construction employment. In residential building, payrolls totaled 577,500 in February, the most since June 2010, according to Labor Department data. D.R. Horton, the largest U.S. homebuilder by volume, said in January its homebuilding revenue for the quarter rose 39 percent from a year earlier to $1.23 billion. Orders jumped 39 percent to 5,259 homes. The Fort Worth, Texas-based company’s contract backlog, an indication of future sales, rose 80 percent to $1.76 billion. Red Bank, New Jersey-based Hovnanian, the largest homebuilder in the Garden State, said this week that net contracts climbed 25 percent to 1,344 homes. The company’s contract backlog rose 33 percent to 2,301 dwellings. Growing Demand “Population is up, sentiment about buying homes is up, households are unbundling, creating demand for housing,” Larry Sorsby, executive vice president and chief financial officer, said at a Feb. 26 conference. “Consumer confidence is rising, rents are rising. So people are more anxious to buy today than they were a year ago and we think that trend is going to continue.” Increases in hiring indicate companies need to ramp up, reflecting the sustained housing rebound. “There’s typically a lag between housing starts and construction jobs of just over a year,” said Michelle Meyer, senior U.S. economist at Bank of America in New York. “There’s often capacity to handle the initial turn.” Purchases of new homes, logged when contracts are signed, jumped in January to a 437,000 annual pace, the strongest since 2008, according to Commerce Department data. Gains in homebuilding ripple through the economy, contributing to job growth beyond the industry. Each single- family home built creates one year of work for three other workers and a multifamily unit provides work for one, according to David Crowe, chief economist at the National Association of Home Builders in Washington. The calculations include occupations such as mortgage lending, architects, and manufacturers of household goods. “Subcontractors feel comfortable that they can hire because there will continue to be homebuilding work available,” Crowe said. “There had been a hesitancy given how long it’s taken to get the industry functioning, to believe the recovery is credible and here to stay.” To contact the reporter on this story: Michelle Jamrisko in Washington at mjamrisko@bloomberg.net; Prashant Gopal in Boston at pgopal2@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net Find out more about Bloomberg for iPhone:   Housing Rebound Is Providing Bigger Boost to U.S. Labor Market Construction hiring jumped in February by the most in almost six years, highlighting the benefits to the U.S. economy from a revitalized housing market. Builder payrolls surged by 48,000 workers, the most since March 2007 and the ninth straight increase, Labor Department data showed today in Washington. The gain accounted for 20 percent of the 236,000 increase in total employment. The jobless rate fell to a four-year low of 7.7 percent. Orders at builders including D.R. Horton (DHI) Inc. and Hovnanian Enterprises Inc. (HOV) are spurring demand for contractors -- from electricians and roofers to plumbers and masons. The industry that was at the center of the financial crisis has emerged as an economic bright spot as Americans take advantage of cheap borrowing costs and improving access to credit. The construction gains are “a very positive sign,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina, a unit of the largest U.S. mortgage lender. “The overall flow of the economy is really improving, and I’m encouraged that housing is continuing to kick in.” Silvia estimates as many as 30,000 construction workers a month will find jobs in the next year. The industry, which includes homebuilding, commercial building and civil engineering, took on 154,000 workers from September through February, the strongest six months gains in employment since the period ended April 2006. Specialty Trade Payrolls at specialty-trade contractors, who perform work such as pouring concrete and installing electrical wire, have climbed 106,000 in the last six months, accounting for about 69 percent of the gain in total construction employment. In residential building, payrolls totaled 577,500 in February, the most since June 2010, according to Labor Department data. D.R. Horton, the largest U.S. homebuilder by volume, said in January its homebuilding revenue for the quarter rose 39 percent from a year earlier to $1.23 billion. Orders jumped 39 percent to 5,259 homes. The Fort Worth, Texas-based company’s contract backlog, an indication of future sales, rose 80 percent to $1.76 billion. Red Bank, New Jersey-based Hovnanian, the largest homebuilder in the Garden State, said this week that net contracts climbed 25 percent to 1,344 homes. The company’s contract backlog rose 33 percent to 2,301 dwellings. Growing Demand “Population is up, sentiment about buying homes is up, households are unbundling, creating demand for housing,” Larry Sorsby, executive vice president and chief financial officer, said at a Feb. 26 conference. “Consumer confidence is rising, rents are rising. So people are more anxious to buy today than they were a year ago and we think that trend is going to continue.” Increases in hiring indicate companies need to ramp up, reflecting the sustained housing rebound. “There’s typically a lag between housing starts and construction jobs of just over a year,” said Michelle Meyer, senior U.S. economist at Bank of America in New York. “There’s often capacity to handle the initial turn.” Purchases of new homes, logged when contracts are signed, jumped in January to a 437,000 annual pace, the strongest since 2008, according to Commerce Department data. Gains in homebuilding ripple through the economy, contributing to job growth beyond the industry. Each single- family home built creates one year of work for three other workers and a multifamily unit provides work for one, according to David Crowe, chief economist at the National Association of Home Builders in Washington. The calculations include occupations such as mortgage lending, architects, and manufacturers of household goods. “Subcontractors feel comfortable that they can hire because there will continue to be homebuilding work available,” Crowe said. “There had been a hesitancy given how long it’s taken to get the industry functioning, to believe the recovery is credible and here to stay.” To contact the reporter on this story: Michelle Jamrisko in Washington at mjamrisko@bloomberg.net; Prashant Gopal in Boston at pgopal2@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net Find out more about Bloomberg for iPhone:

http://m.bloomberg.com/iphone/ http://m.bloomberg.com/iphone/

RIS Media- Home Prices Expected to Rise at least 3.3% annually through 2017

Informative market projection article from RIS Media.

 

http://rismedia.com/2013-03-06/home-prices-expected-to-rise-at-least-3-3-percent-annually-through-2017/

 

 

Dow Average Jumps to Record as Profits, Fed Stoke Rebound

The Dow Jones Industrial Average (INDU) rose to its highest level ever, erasing losses from the financial crisis after a four-year rally fueled by the fastest profit growth since the 1990s and monetary stimulus from the Federal Reserve.

Almost $10 trillion has been restored to U.S. equities as retailers, banks and manufacturers led the recovery from the worst bear market since the 1930s. It took the Dow less than 65 months to rise above its previous high set on Oct. 9, 2007, more than a year faster than the recovery from the Internet bubble.

While the Dow has more than doubled in the four years since its bear-market low, its valuation remains 20 percent less than the price-earnings ratio at the previous peak and 15 percent below its 20-year average. Bulls say that’s a signal stocks have room to keep rallying, while to bears it shows a lack of confidence in earnings growth and concern over the Fed’s ability to continue spurring the economy.

“Psychologically, it may give a sense that we have recovered a tremendous amount from the depths of the crisis,” Wasif Latif, the San Antonio-based vice president of equity investments at USAA Investments, said by telephone. His firm oversees $54 billion. “On the other hand, it could create a sense of nervousness that we reached an all-time high, so how much more is there to go?”

The 116-year-old Dow jumped 0.7 percent to 14,226.2 today at 9:40 a.m. in New York, climbing above the 14,164.53 record closing level it reached before the global financial crisis. It also eclipsed its previous intraday high of 14,198.1 from Oct. 11, 2007. The gauge plunged 34 percent in 2008 for the worst performance in 77 years as the housing bubble burst and the U.S. financial system required a government bailout.

Rally Leaders

American Express Co., Caterpillar Inc. and Home Depot Inc. have led the Dow’s rally since its 2009 low, climbing more than 275 percent as the economy recovered from the worst recession in seven decades. Hewlett-Packard Co., the largest personal computer maker, is the only stock still in the 30-company gauge to fall since March 9, 2009. The shares tumbled 22 percent as mobile devices such as Apple Inc.’s iPad and iPhone began to compete with PCs. Exxon Mobil Corp., which has rallied 38 percent, is the second-worst performer since the gauge bottomed.

Bankruptcies and government bailouts helped make the Dow a different gauge than it was in 2007. Citigroup Inc., American International Group Inc. and General Motors Corp. were removed from the price-weighted average, while Cisco Systems Inc. and Travelers Cos. joined. Kraft Foods Inc., which took over AIG’s spot, was replaced by UnitedHealth Group Inc. last year after the food-maker split in two.

$2.3 Trillion

A rebound in corporate profits coupled with more than $2.3 trillion in Fed stimulus have pushed investors back into equities, sending the Dow up more than 116 percent from its March 2009 low of 6,547.05. The Standard & Poor’s 500 (SPX) Index is less than 3 percent below its record, reached the same day as the Dow.

The Dow surpassed its dot-com-era record on Oct. 3, 2006, 81 months after it peaked in January 2000. The measure had tumbled 38 percent from the 2000 high of 11,722.98 to its bottom on Oct. 9, 2002, as the Internet boom collapsed.

The gauge on average has taken about 6 1/2 years to return to previous record levels, according to data compiled by Bloomberg. Should the measure have followed that path, the Dow wouldn’t have posted a new record until the middle of 2014.

Earnings Growth

Dow profits are projected by analysts to increase 9.2 percent this year and 9 percent next year. Profit from companies in the S&P 500 will exceed $120 a share by next year, double the level in 2008, according to Wall Street estimates. That’s the biggest increase since the 142 percent gain amid the rally in technology stocks from 1993 to 1999.

The expansion in the Dow’s valuation since March 2009 has been slower than the S&P 500’s, while both are cheaper than 2007. The Dow’s trading at 13.8 times earnings in the last year, compared with a multiple of 17.1 at its 2007 peak and 25.9 when it reached a record in January 2000. The S&P 500’s multiple is about 15 times profit, compared with 17.5 on Oct. 9, 2007.

The operating margin, a measure of profitability, for S&P 500 companies is 19.9 percent after reaching 20.7 percent in August, the highest level in Bloomberg data going back to 1998.

‘More Attractive’

“In many ways, the valuations on this market look more attractive because the profit margins that we’ve seen are outstanding,” said Hayes Miller, who helps oversee about $48 billion as the Boston-based head of asset allocation in North America at Baring Asset Management Inc. “Companies have found ways to cut costs and raise productivity levels,” he said. “It’s an argument to the idea that what happened in 2008 won’t occur in 2013. Equities are now fair-valued versus expensive, which they were in 2007.”

U.S. stocks have rallied this year as fourth-quarter earnings beat estimates and lawmakers reached a compromise on taxes, avoiding the so-called fiscal cliff that would have drained more than $600 billion from the economy.

The Dow has climbed more than 17 percent since last year’s June low as Fed Chairman Ben S. Bernanke pledged the central bank will buy $85 billion of mortgage and Treasury securities a month until the labor market recovers. Minutes from the Federal Open Market Committee’s January meeting showed policy makers were divided about Bernanke’s program of buying bonds. The U.S. unemployment rate has fallen to 7.9 percent from 10 percent in 2009.

Final Phase

Laszlo Birinyi, among the first money managers to advise buying U.S. stocks four years ago, has said the bull market rally is entering a final phase as investors who had previously shunned shares capitulate and buy. The Dow is about one month away from matching the average length of bull markets since 1962, data compiled by Westport, Connecticut-based Birinyi Associates Inc. and Bloomberg show.

Investor deposits with global equity mutual funds in the first week of January were higher than any other period except one, according to data compiled by research firm EPFR Global in Cambridge, Massachusetts, going back to 1996. Money flows into stock mutual funds were positive in January for the first time in 11 months and the highest in nine years, according to data from Washington-based Investment Company Institute. That represents a turnaround after investors pulled more than $600 billion from stock funds in the last five years, ICI data show.

Inflows into stock mutual funds at the start of the year are typical and can often fade quickly afterwards, according to Jeffrey Kleintop, the Boston-based chief market strategist at LPL Financial Corp., which oversees $350 billion.

‘Hang Out’

“It could be a while that we hang out around 14,000 before we definitively leave it behind us,” Kleintop said by phone. “History shows that flows and market milestones have coincided and we consolidated for a while after that,” he said. “Any tone from the Fed that suggests they might take the punch bowl away sometime this year could cause the market to pull back. A big part of the rally to all-time highs has been powered by the Fed’s very aggressive stimulus programs.”

The S&P 500 posted its first weekly decline of the year on Feb. 22 amid increasing concern the Fed will curtail its stimulus program. The Dow posted its biggest gain since June on Jan. 2, surging 2.4 percent as lawmakers passed a bill averting most of the fiscal cliff. The gauge had the second-largest rally of the year on Feb. 27 amid better-than-forecast housing data.

Eighteen of the 30 largest U.S. stocks are in the Dow. The gauge includes General Electric Co., the oldest member of the average, and Exxon Mobil, the world’s biggest company by market value.

“The Dow is an indicator of sentiment for the blue chip of blue chip, bellwether companies,” Latif said. “It doesn’t necessarily speak to the broader market as a whole.”

Dividend Yields

Investors may also be lured to companies in the Dow that pay higher dividends, as the 10-year Treasury note’s yield has remained below 2 percent for most of the year. The Dow’s payout rate is 2.5 percent, compared with the S&P 500’s 2.15 percent rate, according to data compiled by Bloomberg. AT&T Inc. returns 4.9 percent of its share price in dividends, the highest yield in the Dow.

“You’re now entering no man’s land and that’s what sparks people’s imaginations,” William Nichols, senior managing director in equity trading at Cantor Fitzgerald LP in New York, said by phone. “Once stocks and markets start to break out, it’s hard to put a limit on how far they’ll break out.”

To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net

To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net

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U.S. Single-Family Home Starts Rise to Four-Year High

Work began in January on the most U.S. single-family houses in over four years and permits for future projects climbed, setting the stage for construction to keep adding to economic growth in 2013.

Builders broke ground on 613,000 houses at an annualized rate last month, the most since July 2008 and up 0.8 percent from December, Commerce Department figures showed today in Washington. Total housing starts dropped to an 890,000 rate, lower than forecast and restrained by a slump in construction of multifamily units, which is often volatile.

With builders such as PulteGroup Inc. and Lennar Corp. reporting rising orders, the industry that was at the center of the financial crisis is poised to boost the economy after emerging as a bright spot in 2012. More hiring and easier access to credit are needed to help complement historically low mortgage rates and sustain the rebound.

“We ended 2012 on a solid note and we do have some momentum heading into this year,” said Gus Faucher, a senior economist at PNC Financial Services Group Inc. in Pittsburgh, who projected total starts would drop to an 895,000 pace. “The fact that single-family starts are up is very encouraging. It is more important to the economy in terms of employment and growth.”

Wholesale prices in the U.S. rose in January for the first time in four months, reflecting higher costs for food and pharmaceuticals, another report showed. The producer-price index climbed 0.2 percent after a 0.3 percent drop in December, the Labor Department reported.

Shares Fall

The Standard & Poor’s 500 Index fell after reaching a five- year high yesterday. The S&P 500 dropped 0.3 percent to 1,526.93 at 10:56 a.m. in New York. The S&P Supercomposite Homebuilding Index tumbled 3.1 percent after Toll Brothers Inc., the largest U.S. luxury-home builder, reported earnings and revenue that trailed analysts’ estimates.

Overseas today, Japan said its trade deficit swelled to a record 1.63 trillion yen ($17.4 billion) in January as energy imports climbed and the yen weakened.

The median estimate of 85 economists surveyed by Bloomberg projected total U.S. housing starts would drop to a 920,000 annual rate. Estimates ranged from 870,000 to 1 million. The prior month’s figure was revised to 973,000, up from a previously reported 954,000 pace and the most since June 2008.

Permits increased to a 925,000 annual rate, the highest since June 2008. They were projected to climb to a 920,000 annual rate, according to the survey median. Applications that are higher than the level of starts signal residential construction may strengthen.

Permits ‘Solid’

“Permits look very solid, and that is a great sign,” said PNC’s Faucher.

Company results indicate the improvement in residential real estate will continue. PulteGroup, Lennar and D.R. Horton Inc., the top three U.S. homebuilders by market value, said orders rose in the most recently reported quarter.

“The combination of incredibly low mortgage rates, continued increases in rental rates and especially rising home prices, and very low -- and likely to stay low -- inventory levels for housing lead us to believe that 2013 will be a better year for U.S. housing than 2012,” Richard Dugas, chief executive officer of Bloomfield Hills, Michigan-based PulteGroup, said on a Jan. 31 earnings call.

Results from Horsham, Pennsylvania-based Toll Brothers raised concern industry expectations were running ahead of results. The builder reported net income in the quarter ended Jan. 31 was $4.4 million, or 3 cents a share. The average of 16 estimates in a Bloomberg survey was for earnings of 10 cents a share.

Toll’s Woes

Toll’s biggest market is from Boston to Washington, where new-home sales have lagged behind growth nationwide amid rising foreclosures in the area and threats of federal budget cuts.

Work on multifamily homes such as apartment buildings plunged 24.1 percent in January to an annual rate of 277,000 after jumping 34.7 percent the prior month to a four-year-high 365,000 rate, today’s Commerce Department report showed.

Here, the news from permits was also encouraging. Applications for future multifamily work increased 1.5 percent last month to a 341,000 rate, the most since July 2008.

The drop in total starts reflected declines in two of four regions. Construction dropped 50 percent in the Midwest and 35.3 percent in the Northeast. It rose 16.7 percent in the West and 4.1 percent in the South.

Regional Breakdown

The regional breakdown, with slowdowns in the Midwest and Northeast, indicates weather may have played a role in the swing from December to January. The last month of 2012 was the second- warmest December in U.S. records going back to 1958, according to the National Oceanic and Atmospheric Administration, which may have boosted homebuilding in those regions that are most sensitive to climate.

Residential construction contributed to gross domestic product in 2012 for the first time in seven years, accounting for 0.27 percentage point of the 2.2 percent advance in growth.

The Federal Reserve’s efforts to keep mortgage costs low have helped bring about a turnaround in housing, and may keep boosting demand.

Near record-low mortgage costs have made it cheaper to buy a home for those who qualify for credit. The average fixed rate on a 30-year loan held at 3.53 percent in the week ended Feb. 14, down from 3.87 percent a year ago, figures from McLean, Virginia-based Freddie Mac showed.

For all of last year, builders began work on 779,900 homes, a 28.1 percent increase from 2011. Even with the yearly improvement, housing starts remain short of the 2.07 million in 2005 at the peak of the boom, which was a three-decade high.

Sentiment Stalls

Sentiment in the industry leveled off this month from a more than six-year high, figures showed yesterday. The National Association of Home Builders/Wells Fargo index of builder confidence fell to 46 from the prior month’s 47 that matched the highest reading since April 2006.

Firming prices are also helping to attract buyers who were reluctant to make purchases when property values were declining. The S&P/Case-Shiller index of house prices in 20 cities rose 5.5 percent in the 12 months to November, the biggest year-over-year gain since August 2006, the most recently available data showed.

To contact the reporters on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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CHAC Signs Multi-Million Dollar Deed Swap for New Building

'It's a miracle,' said Executive Director Monica Kane of finding and working with the Malek family to a happy conclusion. The new property at 590 W. El Camino Real doubles the organization's footprint.

• By Claudia Cruz

After 25 years, CHAC has inked a monumental real estate deal.

The Community Health Awareness Council signed on Monday an agreement that makes official a multi-million dollar land deed swap between the mental health agency and the MPM Corporation, acting on behalf of the Malek Living Trust. The land swap, which moves CHAC from its current location at 711 Church St. to 590 W. El Camino Real, doubles its square footage from 3,408 to 7,330—and will accommodate its recent and future growth.

"It's a miracle," said Monique Kane, executive director, after the signing.

According to a press statement, the MPM Corporation found CHAC's original space "essential and valuable" to the completion of their new development at 605 Castro St., which includes a new office tower, eight condominium units and an underground parking lot.

However to the Malek family, this land swap represents more than a business transaction. Their 590 W. El Camino Real property has been appraised for $3.16 million compared to CHAC's at a little more than $1.1 million.

"This is much more than a transaction," said Mina Malek, whose family lived in Los Altos. "We've been working with CHAC for a few years to help them find a space that helps them grow."

She added that they conducted a feasibility study and worked with their staff.

"We are happy to work with an organization that really benefits the community," she said. "We really wanted to help CHAC. It's not just a business agreement but something that will help the community."

In 10 years, the number of clients has grown 535 percent from 1,844 in 2002 to 11,720 in 2012. To accommodate this increase, CHAC has hired more staff. They went from 74 to 122, an increase of 65 percent.

CHAC's new location has a training room for clinical interns, that is, professionals in the field of psychology and another conference room. The Outlet Project, an LGBTQ youth program, will now have two offices instead of one. The building has an underground parking lot, an elevator and handicap accessible entries.

"We love our old building and their will be some mourning, but we are ready to move," said Sally Schuman, executive assistant.

Several CHAC Board Members stopped by for the event, including Ginny Dolan, Susan Sweeny and Bruce Barsi. Barsi thanked the Malek's "for being so unbelievable generous with CHAC."

"This will live on and you can't even imagine how many kids will be touched by this," he said.

After signing the agreement Shohreh Malek, the matriarch of the family, told Kane that she would like to continue her involvement with CHAC. She told Mountain View Patch, with her two daughters, they had belonged to the National Charity League and have helped 25 organizations in community over the years.

Her husband, who died in January 2012, wanted to have an impact and do good for community, she shared.

"I started reading about CHAC and what they do, and I wanted to become involved in whatever capacity I could," she said. "I really want them to see them succeed."

"This is a win-win."

CHAC expects to be in their new location by the end of June 2013.

Mortgage rates: Week ending 1/24/2013 30-yr. fixed: 3.42% fees/points: 0.7% 15-yr. fixed: 2.71 fees/points: 0.7% 1-yr. adjustable: 2.57% Fees/points: 0.5% (Source: Freddie Mac) 

BIDDING WARS ARE BACK!

• The bidding war is back! While not every local real estate market is experiencing bidding wars, some home buyers find themselves competing for houses because of a lack of homes for sale in their desired neighborhood.

• To compete in a bidding war, buyers need to prepare financially for the home purchase.  They have to familiarize themselves with property values in their target neighborhoods,  and they must know what they want.

• While offering the most money might seem the best way to win a bidding war, sellers don’t always choose the highest offer.  Instead, sellers often prefer offers that are most likely to go through and that meet their conditions.

• Many real estate agents suggest buyers talk to a lender and have all of their finances squared away before beginning the house hunt.  By completing everything the lender requires, buyers can get a pre-approval letter before submitting an offer, making their offer more valuable.

 

 

 

U.S. Home Prices Rose 5.6% in 12 Months Through November

U.S. home prices climbed 5.6 percent in the 12 months through November as buyers competed for a dwindling inventory of properties, according to the Federal Housing Finance Agency.

Prices rose 0.6 percent from October on a seasonally adjusted basis, the FHFA said today in a report from Washington. The average estimate of 15 economists in a Bloomberg survey was for a 0.7 percent advance.

Home prices have been climbing as growing employment and low borrowing costs fuel demand. Sales of existing homes fell 1 percent in December to a 4.94 million annual rate, restrained by the tight supply of available properties, figures from the National Association of Realtors showed yesterday.

The FHFA data, which is based on single-family houses with mortgages backed by Fannie Mae or Freddie Mac, doesn’t provide a specific price. The median price of an existing single-family home, as measured by the National Association of Realtors, was $180,800 last month, up 12 percent from a year earlier.

To contact the reporter on this story: Prashant Gopal in Boston at pgopal2@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

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Bloomberg news: Recovery in U.S. Saving 8 Million Underwater Homeowners

 

Maggie Medved was stuck with her Phoenix house for two years after the market crash wiped out the equity in the property. Last year, as prices in the area rose by the most in the U.S., she and her partner were finally able to sell the 3-bedroom 1950’s style home and move to a larger place.

http://bloom.bg/W6oljU

 

Sales of Existing U.S. Homes Rose to Three-Year High in November

Sales of previously owned homes rose more than forecast in November to reach a three-year high as lower borrowing costs sustained the U.S. housing rebound.

Purchases of existing houses increased 5.9 percent to a 5.04 million annual rate, the most since November 2009, the National Association of Realtors reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg projected an increase to a 4.9 million rate. Property values climbed 10.1 percent over the past 12 months as inventories dropped to the lowest level in 11 years.

Record-low mortgage rates and an improved job market are boosting sales and cutting inventories, giving the market the opportunity to absorb foreclosures. Prices are rising as a result, which will probably draw more buyers seeking to take advantage of current affordability in housing, helping retailers such as Pier 1 Imports Inc. (PIR) and Lowe’s Cos. Inc.

“The housing market is staged for continued improvement,” Anika Khan, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, before the report. “Underlying fundamentals are continuing to improve despite uncertainty. We’re seeing better labor market numbers, and that’s also reflected in better consumer confidence. Sales activity is going to be volatile but the underlying trend is still improving.”

Economists’ estimates in the Bloomberg survey ranged from 4.59 million to 5.15 million. The prior month’s pace was revised to 4.76 million from a previously reported 4.79 million.

Stronger Growth

Other reports today showed the economy grew at a faster pace than projected in the third quarter, claims for jobless benefits increased last week and consumer confidence climbed to an eight-month high.

The economy grew at a 3.1 percent annual rate in the third quarter, reflecting the first gain in state and local government spending in three years, more consumer purchases and a smaller trade gap, figures from the Commerce Department showed.

The number of Americans filing first-time claims for unemployment insurance payments increased by 17,000 to 361,000 in the week ended Dec. 15, according to Labor Department data. It was the first increase in five weeks.

The Bloomberg Consumer Comfort Index rose to minus 31.9 in the period ended Dec. 16, from minus 34.5 in the prior week. The gauge was within a half point of a four-year high reached in April. Americans views’ on the economy and personal finances improved as gains in employment, a rebound in housing and lower gasoline prices are giving households reason to be upbeat during the holiday-shopping season.

Prices Increase

Today’s report on existing home sales showed the median price increased to $180,600 from $164,000 in November 2011, today’s report showed. The increase reflects a growing share of sales of higher-priced properties, Lawrence Yun, NAR chief economist, said in a news conference as the figures were released.

Compared with a year earlier, purchases increased 15.5 percent before adjusting for seasonal variations.

The number of previously owned homes on the market dropped to 2.03 million, the fewest since December 2001. At the current sales pace, it would take 4.8 months to sell those houses, the lowest since September 2005, compared with 5.3 months at the end of October.

Existing-home sales have improved after reaching a low 3.39 million annual rate in July 2010. In the buildup to the subprime lending collapse and recession, purchases reached a peak of 7.25 million in September 2005.

Fed Policy

Efforts by Federal Reserve policy makers to boost growth by keeping interest rates low are paying off. The average rate on a 30-year, fixed loan was 3.32 percent last week, compared to 3.94 percent a year ago, according to Freddie Mac. The rate reached 3.31 percent in late November, the lowest in weekly data back to 1972.

Builders are planning on increasing the supply of new houses, with the number of building permits issued in November hitting a four-year high, the Commerce Department reported yesterday. Applications, a proxy for future construction, rose 3.6 percent to an 899,000 annual rate, the most since July 2008.

Consumer confidence is improving and shoppers are spending, partly because of housing-market gains, said Robert Hull, chief financial officer at Lowe’s, based in Mooresville, North Carolina.

“2012 represents the first year of growth across all of the core housing metrics: housing turnover, single-family starts and median home prices,” Hull said at a Dec. 5 investor conference. “These recent positive trends are helping consumers regain confidence in both their local housing markets and their home value.”

Pier 1’s furniture sales have been gaining momentum all year, President and Chief Executive Officer Alexander Smith said. On Dec 13, the company reported its 13th consecutive quarter of sales and profit growth.

The improvement is due in part to “what we view as the very beginnings of a long-awaited recovery in the housing market,” Smith said on an earnings call.

To contact the reporter on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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NEWS FLASH

 

 

Call your member of congress today to protect the mortgage interest deduction
Congress, as part of negotiations on avoiding the "Fiscal Cliff," has made direct references to "closing loopholes" and "limiting deductions" as a way to raise revenues. Clearly, the mortgage interest deduction is high on this list of revenue raisers.

 

Losing the mortgage interest deduction will disproportionately affect the middle class because a larger proportion of the middle class takes the deduction. In California 89% of those who took the mortgage interest deduction earned less than $200,000. Losing the deduction would cost the average California taxpayer over $3,900.

 

What you can do to help:

 

Call Congress. First and foremost, we are urging the public to get involved by calling Congress to ask that the mortgage interest deduction be preserved. The public may reach Congress by calling 202-224-3121. 

 

The Capitol switchboard operator will help callers identify their member of Congress and connect them.

 

The public can reach Congress by calling (202) 224-3121.

 

Monday-Friday from 9 a.m. – 6 p.m., Eastern Time.

 

Get the word out. Many people seem to be blissfully unaware that their mortgage interest deduction is in danger. Please do the following to make sure that the message spreads.

 

1. Forward this message to your family, friends, and clients.
2. Post this information on your personal and office websites and blogs.
3. Share this information on Facebook and urge others to share it as well.
4. Tweet about it on Twitter and urge others to retweet. Use the hashtag: #keepthemid.
5. Link to the following web page: www.KeepTheMID.com.  This site has information about contacting Congress, more information on the MID, and links to articles.
6. As you see new information and articles, share these on all your social networking sites.

Watch and share this video about preserving the MID.

 

Good Morning Sereno Group,

This article speaks about a topic I also recently covered in a market update piece for Homes & Land Magazine.  Essentially conceding the fact that the foreclose wave of shadow inventory has been averted.  And of all places on the planet, Stockton now also has a housing shortage.

Enjoy the day,

Chris

Stockton, California, has the highest U.S. foreclosure rate. It also has a housing shortage.

http://bloom.bg/Y861wm

Existing-Home Sales in U.S. Increase to 4.79 Million Rate

Existing-Home Sales in U.S. Increase to 4.79 Million Rate

Homebuilder Confidence Rises to Six-Year High on U.S. Sales

Homebuilder Confidence Rises to Six-Year High on U.S. Sales

Home Prices Rise in 81% of U.S. Cities as Markets Recover

Message from Mike As the Santa Clara County 2012 Economic Summit concludes, I am thrilled with the ideas and suggestions that came from the discussions on the green economy, health care and small business. If you were unable to attend the Economic Summits, I invite you to view the recordings, marked “special meeting” on August 7, 10 and 13 by clicking here. District 1 residents really love their Farmers’ Markets! I received dozens of great entries for my summer photo contest: colorful, creative and whimsical. Below are the three winning photos that caught the eye of my office team. To view the other honorable mentions, please visit my Flickr photo page here. The three winning images will be framed to hang in our office at 70 West Hedding Street in San Jose for all to view and enjoy. I want to thank everyone who took a break from the ordinary to submit a photo and help spread the word about the contest. Farmer’s Markets support local farmers, healthy eating, and community involvement. Farmers' Market Photo Contest Winners It’s not often that you get to celebrate a 125 year anniversary! Happy Quasquicentennial Anniversary Los Gatos: You don’t look a day over 100! Last week, my wife Kim and I enjoyed the downtown walking tour that was part of the celebration, replete with little known facts and town history. For example, did you know that Los Gatos was founded around a flour operation, Forbes Mill? Read more Los Gatos history here. If you have driven around Gilroy recently, you have probably noticed the new works of art on traffic signal boxes. Kudos to the City of Gilroy for becoming the latest city to team up with local artists on these eye-catching murals which reduce graffiti. The City of Gilroy is looking for more sponsors for future boxes. For $800 you can work with the mural artist to choose the artwork and include your name. Partial sponsorships are also available. Click here to read more about this colorful community project. For those of you who missed it: The County recently voted to place a 1/8 cent sales tax on the November 2012 ballot – something that I have consistently voted against. Last week was also the annual National Night Out event in neighborhoods across the country. Check out these photos from Morgan Hill's National Night Out which drew a huge crowd downtown. Kudos to all involved with making this and other NNO events throughout the county a success. As always, you can reach my office at (408) 299-5010, or you can email me at mike.wasserman@bos.sccgov.org with your comments and concerns. Mike Wasserman Santa Clara County Supervisor, District 1 P.S. Is there a person or organization in your community who deserves a public “Kudo?” Email your submissions (including name, why they are being nominated, and link to more information) to Elizabeth.Sanford@bos.sccgov.org     Countywide: Shop Macy’s and Support the Health Trust AIDS Services Date: July 23-August 17, 2012 Time: 6:00pm – 9:00pm Location(s): Stanford, 300 Stanford Shopping Center, Palo Alto; Sunnyvale Town Center, 200 West Washington Avenue, Sunnyvale; Cupertino Square, 10333 Wolfe Road, Cupertino; Valley Fair, 2801 Stevens Creek Boulevard, Santa Clara; Oakridge, 5411 Thornwood Drive, San Jose; and Eastridge, 2210 Tully Road, San Jose Join the fight against HIV/AIDS and save money! Local Macy stores are raising money for The Health Trust AIDS Services through a promotion called Glam Pass. When you purchase the Glam Pass coupon for $10 at the register, you will save 15% to 20% on your total purchases for that day! Proceeds from each Glam Pass sold will benefit The Health Trust AIDS Services. More Information: jonb@healthtrust.org or www.healthtrust.org Monte Sereno: West Valley Personal Emergency Preparedness Course Date: Tuesday, August 14, 2012 Time: 6:00pm-9:00pm Location: Monte Sereno City Council Chambers, 18041 Saratoga-Los Gatos Road, Monte Sereno Are you prepared for an emergency? Santa Clara County and the West Valley are vulnerable to emergencies like wild fires and earthquakes. In the event of a disaster, first responders (firefighters, police and medical personnel) will be overwhelmed. Learn how to prepare to be on your own for several days after the next large disaster. This event is free. More information: 408-378-4010 and to register: info@cnt.sccgov.org San Jose: Federal and State Basic Payroll Tax Seminar Date: Wednesday, August 15, 2012 Time: 10:00am-4:00pm Location: San Jose Entrepreneur Center, 100 East Santa Clara Street, San Jose Get it right from the start by attending this free Federal and State Basic Payroll Tax Seminar. You will learn about: employer obligations, Federal and California payroll reporting and payment requirements, including federal tax forms, independent contractor reporting requirements, electronic filing and payment requirements, and more. More Information: www.edd.ca.gov San Jose: Comedy UNHOOKED Date: Wednesday, August 15, 2012 Time: 8:00pm Location: ComedySportz, 288 South 2nd Street, San Jose Attend comedy UNHOOKED, a benefit to help Housing 1000 End homelessness in Silicon Valley! Enjoy hilarious performances by ComedySportz, Tina Allen Gallo, DNA, Michael Slack and Phil Johnson, plus bra unhooking, belly dancing, and more! Bring new or gently used bra to receive a free raffle entry for raffle prizes. All proceeds will go to Housing 1000 and be used to purchase furniture for formerly chronically-homeless individuals moving into their new homes. Tickets are $18, and $25 at the door. More Information: www.brownpapertickets.com San Martin: 10th Anniversary Custom and Classic Car Show Date: Saturday, August 18, 2012 Time: 11:00am-5:00pm Location: Ludewig Ranch, 13865 Monterey Road, San Martin Come to the Custom and Classic Car show in San Martin. There will be custom and classic cars and trucks on display, great food, live music, a raffle for prizes, and a silent auction. Admission is $5 and parking is free. More Information: 408-683-2022 or info@smneighbor.org Morgan Hill: Jail/Bail for Rachel's Challenge Date: Saturday, August 24, 2012 Time: 2:00pm-5:00pm Location: Community and Cultural Center, 17000 Monterey Road, Morgan Hill Have you ever wanted to see high profile community leaders being arrested. Well now is your chance at the Jail/Bail for Rachel's Challenge. High profile community leaders will be arrested and the donations they have raised will be their bail. Following will be a celebration at Momma Mia's. More Information: Della.Neighbors@sbbt.com San Jose: Italian Family Festa Date(s): Saturday, August 25 and Sunday, August 26, 2012 Time(s): Saturday 11:00am-8:30pm and Sunday 11:00am-6:00pm Location: Adjacent to the HP Pavilion, Julian Street and St. John Street, San Jose The Italian-American Heritage Foundation presents the 32nd annual Italian Family Festa. Enjoy authentic Italian food, bocce ball contests, a wine tasting garden, wonderful arts and crafts, a grape-stomping contest, and non-stop entertainment! More Information: 408-293-7122 or www.italianfamilyfestasj.org San Jose: College Planning for a Great Life Date: Saturday, August 25, 2012 Time: 1:30pm Location: Almaden Library and Community Center, 6445 Camden Avenue, San Jose Campus Pathway is offering a free college planning seminars led by Jeffrey Morrison, a member of the National Institute of Certified College Planners. Register for this free course now as space will fill up. More Information: 408-973-7228 or www.campuspathway.com San Jose: Celebrate Cambrian Festival Date: Sunday, August 26, 2012 Time: 11:00am-4:00pm Location: Camden Community Center, 3369 Union Avenue, San Jose Join San Jose Councilmember Donald Rocha at the Camden Community Center on Sunday, August 26th for the annual Celebrate Cambrian Festival! There will be a free kid's zone with bounce houses, live entertainment, a resource fair, and several food vendors! More Information: district9@sanjoseca.gov Los Gatos: The Labor Day Grill and Chill at Calvary Church Date: Monday, September 3, 2012 Time: 11:00am-3:00pm Location: Calvary Church of Los Gatos, 16330 Los Gatos Boulevard, Los Gatos Bring your family to Calvary Church in Los Gatos and enjoy a day full of fun, food, and entertainment. Delicious food will be available for purchase from the popular Moveable Feast (SJ Eats) food trucks. Kids can enjoy various activities at the children’s festival and petting zoo. Admission is free! More information: 408-356-5126 or www.calvarylg.com Los Gatos: West Valley Personal Emergency Preparedness Course Date: Thursday, September 6, 2012 Time: 6:00pm-9:00pm Location: Police Operations Building, 15900 Los Gatos Boulevard, Los Gatos Are you prepared for an emergency? Santa Clara County and the West Valley are vulnerable to emergencies like wild fires and earthquakes. In the event of a disaster, first responders (firefighters, police and medical personnel) will be overwhelmed. Learn how to prepare to be on your own for several days after the next large disaster. This event is free. More information: 408-378-4010 or info@cnt.sccgov.org Los Gatos: Claws for a Cause VI Date: Saturday, September 8, 2012 Time: 5:30pm-10:00pm Location: C.B. Hannegan’s, 208 Bachman Avenue, Los Gatos An all-you-can-eat Lobster Block Party, Claws for a Cause is a party you won't want to miss! Eat, party, and dance with friends and neighbors! The Los Gatos Morning Rotary Club, in partnership with C.B.Hannegan’s Irish Pub, is presenting this community fundraising event, with proceeds going to the Los Gatos Morning Rotary Charitable Foundation, which supports music, art, and youth scholarships. Tickets are $90 per person. More Information:www.lglobsterparty.com Morgan Hill: 10th Annual Second Chance Week Date(s): Saturday, September 8, 2012-Sunday, September 16, 2012 Time(s): Vary Location(s): Vary In recognition of the many benefits of reuse, Morgan Hill, Gilroy and South County will be holding our 10th Annual Second Chance Week, with the goal of putting more used stuff back into circulation and keeping it out of landfills. Second Chance Week features a diverse range of innovative reuse, resale and repair activities. More Information:www.morgan-hill.ca.gov Morgan Hill: Volunteer Faire 2012 Date: Saturday, September 8, 2012 Time: 9:00am-1:00pm Location: 3rd Street Promenade, Morgan Hill Volunteer and help create a better community. Volunteers in the Morgan Hill area are needed to help public safety groups, assist in community events, help family and non-profit health organizations, and more! Service providers will be present to share how they are making a difference every day in our community. Learn how you can "raise your hand" and get involved. More Information:www.vmhfaire2012.eventbrite.com or info@volunteermorganhill.com San Jose: Chili’s Gilroy Create-A-Pepper to Fight Childhood Cancer Date: Monday, September 10, 2012 Time: Check-in: 10:00am-11:00am and Shot-Gun starts at 12:00pm Location: Coyote Creek Golf Course, One Coyote Creek Drive, San Jose Make sure to bring your golf game to the 3rd annual Chili’s Create a Pepper Charity Golf Tournament, benefiting St. Jude Children’s Hospital. All tournament-related expenses are tax-deductible. Fees include lunch and a BBQ Buffet Awards Dinner. More information:Chili’s Gilroy at 408-842-4000 or fevaltierra@gmail.com or c00965@chilis.com San Jose: Chefs of Compassion: Cooking for a Cause Dinner Date: Friday, September 14, 2012 Time: 5:00pm-9:00pm Location: Lexus of Stevens Creek, 3333 Stevens Creek Boulevard, San Jose The Chefs of Compassion: Cooking for a Cause Dinner is a unique dining event that challenges well-known chefs in Silicon Valley to prepare a four-course dinner with ingredients found solely from the WVCS Food Pantry. Participating chefs will be judged on a five point scale for taste, appearance, and creativity. A second award will be awarded to the Chef who received most votes from event attendants. The price is $100 per person or $1,000 for a table of 10. More information: 408-255-8033 ext. 305 or www.chefsofcompassion.org or jacquelined@wvcommunityservices.org Morgan Hill: Public Safety Day, Open House Date: Saturday, September 15, 2012 Time: 11:00am-3:00pm Location: Morgan Hill Police Department, 16200 Vineyard Boulevard, Morgan Hill Get to know your public safety representatives and the tools they use to preserve protect and defend you and the community. There will be tours of the Police Department, SWAT trucks and other MHPD vehicles on display, food, games and prizes. More information: www.morganhillclef.org or www.facebook.com/MHCLEF or info@morganhillclef.org Gilroy: Paradise Found Date: Saturday, September 15, 2012 Time: 5:00pm Location: Gilroy Elk’s Lodge on the Hill, 2765 Hecker Pass Road, Gilroy Please join the Gilroy Foundation for an evening of wine tasting with local vintners, fire dancing, ukulele music, and silent auction. Enjoy an authentic tropical dinner as you experience a beautiful Hula dancing performance. A live auction (hosted by Auctioneer Bill Christopher) will complete the evening. Event proceeds support the programs of the Gilroy Foundation. More information: www.gilroyfoundation.org Sunnyvale: Second Annual Cake-Off4Kids! Date: Saturday, September 15, 2012 Time: 5:30pm-8:30pm Location: Domain Hotel, 1085 East El Camino Real, Sunnyvale This second annual cake-tasting and cake-decorating competition benefits Cake4Kids, a Sunnyvale nonprofit that provides free birthday cakes to foster children and at-risk youth in the San Francisco Bay Area. You can help local foster children feel special on their birthdays by entering your cake in the contest, selling tickets, or just attending our special event. To sponsor the contest please contact Serena at serenaloconte@gmail.com More information: www.cake4kids.org San Jose: 36th Almaden Valley Art and Wine Festival Date: Sunday, September 16, 2012 Time: 10:00am-6:00pm Location: Almaden Lake Park, Almaden Expressway and Coleman Road, San Jose Enjoy the last weekend of summer at the 36th Almaden Valley Art and Wine Festival. Voted one of the best festivals in San Jose, it features something for everybody! All proceeds are donated to non-profit organizations, local schools, and merit based scholarship programs for local students. More information: www.almadenwine.org Campbell: Rotary Club of Campbell Meeting Date: Tuesday, September 18, 2012 Time: 1:00pm-1:30pm Location: Community room at EMQFamiliesFirst, 251 Llewellyn Avenue, Campbell Come listen to Supervisor Mike Wasserman give a presentation on issues facing the County at the Rotary Club of Campbell. There will be Q and A session following the presentation. More information: www.campbellrotary.org Woodside: 11th Annual Wine Tasting Benefit for Healthly Kids Date: Sunday, September 23, 2012 Time: 1:00pm-4:00pm Location: Thomas Fogarty Winery, 19501 Skyline Boulevard, Woodside Overlooking beautiful vineyards, attendees will dine on a special menu from Le Papillon and taste various varietals from over 10 wineries from the Napa Valley to the Santa Cruz Mountains. There will be a live and silent auction of fine wine, fun destinations, and other items. The funds raised support the Healthy Kids program in Santa Clara County, which provides medical, dental, and vision care to over 6,400 low-income children each month. Buy your tickets early, as last year's event sold out! More information: www.eventbrite.com Gilroy: Tee-Off for St. Joe’s 2012 Date: Friday, September 28, 2012 Time: Check-in 12:00pm Location: Gilroy Golf Course, 2695 Hecker Pass Road, Gilroy Come on out for a great afternoon of golf at the Gilroy Golf Course! The cost is $100 per player and the day’s festivities includes lunch on the course, BBQ diner, beer, wine, cigars, prizes, a putting contest, a raffle, and a live auction! Proceeds benefit the various food and nutrition programs of Saint Joseph’s Family Center. More information: 408-842-6662 or www.stjosephsgilroy.org Morgan Hill: 23rd Annual Taste of Morgan Hill Date(s): Saturday, September 29 and Sunday, September 30, 2012 Time: 10:00am-6:00pm Location: Downtown Morgan Hill, Main to Dunne and First through Fifth Streets, Morgan Hill Enjoy strolling Downtown with your family at this Arts and Crafts Festival. There will be fine arts and quality crafts, food from local restaurants, a beer and wine garden, live music with a Saturday night concert by Shane Dwight, kids’ zone with rides, and a custom and classic car show. Free admission and parking! More information: www.morganhill.org or info@morganhill.org Atherton: Valley Medical Center Foundation Gala in the Garden Date: Saturday, September 29, 2012 Time: Evening Location: Atherton home of Michelle Sandberg, MD and Marc Bodnick Spend your Saturday evening in a most cultured manner by dancing to the Grammy-nominated sounds of Octobop, tasting delicious cuisine, enjoying local wines, and biding on rare auction items. This event serves as the annual fundraising gala for the Valley Medical Center Foundation. A portion of your gift will be tax-deductible. Tickets can be purchased by calling the number or visiting the website listed below. More information: 408-885-5299 or www.vmcfoundation.org Los Gatos and Monte Sereno: Community-Wide Garage Sale Date: Saturday, October 6, 2012 Time: 9:00am-3:00pm Location: A map of the registered residences for the garage sale will be released before the event. The Los Gatos and Monte Sereno Community Garage Sale gives participants a chance to clean out their garages, attics, storage sheds and closets without sending those valuable items to the landfill. Residents of the Town of Los Gatos and the City of Monte Sereno are invited to hold garage sales at their homes, join with neighbors to hold block sales, or get together with their community to hold a group sale. The Town of Los Gatos and City of Monte Sereno will provide marketing for the event and the sellers keep the cash - it’s that easy! More information: 408-399-5770 or www.losgatosca.gov or MRenn@LosGatosCA.gov Gilroy and Morgan Hill: Passport Weekend Date(s): Saturday, October 6 and Sunday, October 7, 2012 The Santa Clara Wineries invite you to taste the best of California wines, including many of the gold winning wines located in Morgan Hill and Gilroy, while enjoying the beautiful surroundings. Exclusive events are planned for passport holders, including the sampling of fine wines, barrel tastings, BBQ, winery tours, special discounts, new releases, great food and music all in the company of your friends and neighbors. Passports can be purchased at any participating winery, at the Morgan Hill Chamber of Commerce or the Gilroy Welcome Center. More information: 408-842-6636 or www.santaclarawines.com Los Gatos: St. Mary’s Country Fair Date(s): Friday, October 5-Sunday, October 7, 2012 Time(s): Friday, 5:00pm-10:00pm, Saturday, 10:00am-10:00pm, and Sunday, 10:00am-5:00pm Location: St. Mary of Immaculate Conception, 219 Bean Avenue, Los Gatos Come to the St. Mary’s Country Fair! Exciting events are planned for a full weekend of family fun, including carnival rides and games, a petting zoo, BBQ, talent show, country store, spaghetti dinner, bingo, car raffle, live bands, bouncy houses and slides, and fun for all at this great tradition for the parish, the school and the local community. More information: www.stmaryslg.org or fair_chairs@stmaryslg.org Los Gatos: Music in the Park Date: Every Sunday Evening through August 26th Time: 5:00pm-7:00pm Location: Civic Center Lawn, 110 East Main Street, Los Gatos Music lovers are invited to come to the last two Music in the Park events of the year featuring Chris Cain on August 19, a master of blues guitar, vocals, and keyboard, and Latin jazz legend Pete Escovedo on August 26! Admission is free! More information: www.lgmip.com Los Gatos: Jazz on the Plazz Date(s): Every Wednesday Evening through August 29th Time: 6:30pm-8:30pm Location: Park Plaza, Main Street and Santa Cruz Avenue, Los Gatos Listen and enjoy some of the Bay Area’s finest jazz musicians for free at the Park Plaza on Wednesday nights! More information:www.jazzontheplazz.com Morgan Hill: Downtown Association’s Thursday Night Street Dance Date: Every Thursday Evening through September 27th Time: 7:00pm-9:00pm Location: Third Street Promenade, Between Monterey Road and Depot Street, Morgan Hill Dance to great local bands, shop at nearby downtown stores, and dine out at one of Downtown’s 28 local restaurants! More Information: 408-779-3190 or www.morganhilldowntown.com Gilroy: Fifth Street Live Music Series Date: Every Friday Evening through August 31st Time: 7:00pm-9:00pm Location: Downtown Gilroy Celebrate Summer 2012 with our family friendly weekly music series on Friday nights. Pack a picnic dinner and some chairs and come Downtown to shake your groove thing! More information: www.downtowngilroy.com Morgan Hill: Friday Night Music Series Date: Every Friday Evening through August 31st Time: 6:00pm-9:00pm Location: Morgan Hill Community and Cultural Center Outdoor, 17000 Monterey Street, Morgan Hill Spend your Friday evening outside while listening to music. Admission is free! More information: 408-779-9444 or info@morganhill.org

Housing Starts in U.S. Rose in June to Highest Since 2008