On the up side: The million-plus jobs added to the U.S. economy during the first half of 2013 is contributing to a more vibrant retail and housing sector, and U.S. travel and
tourism spending will reach an all time record high this year. And with more people now working, the stock market rising sharply this year and housing values soaring, consumers are feeling wealthier in 2013, and that’s supporting retail store sales, auto purchases, home purchases, and spending on travel.

In Summary: Expect the sluggish growth in the U.S. economy to continue
through the summer. Ditto the performance of the U.S. Stock Market. The creation of jobs will accelerate later this year. QE3 will likely remain unchanged, at least into September if
not later into the 4th Quarter of 2013. Longer term interest rates will stay low but not retreat any further. Inflation is likely to average between 2.0 and 2.3 percent this year.

Read more HERE

According to Mark Schniepp’s California Forecast: Unemployment rates are falling, employment and income are rising, and housing markets are rebounding nearly everywhere. Despite sequestration, high gasoline prices, higher taxes in January, and a sluggish manufacturing sector, the economic indicators to date are generally moving in a positive direction.

So, what’s next?

Housing will be a key factor in the growth of the economy
next quarter and for the remainder of 2013. It should be
especially important in California.

Getting ahead in life is about doing the things that most people don’t like doing. If you’re looking to increase the value of your organization’s brand, do these 15 things…EVERY DAY and you’ll be an enabler of talent, culture and results. See the 15 things HERE (via Forbes)

Signs of a recovering market! Private equity firms are looking at the U.S. housing market as a source of investment profits in the years to come from different angles, including distressed properties, home builders and other ancillary sectors. Big Investment firms and hedge fund managers are  snapping single-family residences from real estate owned (REO) bank portfolios at prices much lower than what small investors and first-time home buyers could expect to find.  As with any other recovering market, investors with fast access to cash and ample credit lines stand to gain the most from bargain opportunities. Real estate analysts expect to see increased activity from Wall Street investors who will be watching the foreclosure inventories like hawks in the months to come. Read more of this Niche Report article HERE.

The recovery in the housing market continues to pick up steam, as home prices posted the biggest percentage gain in more than two years. This latest rise comes as the housing market has shown numerous other signs of recovery in recent months. The improvement in housing market fundamentals has helped to lift the pace of both home sales and home building. But even with the latest rise in prices, the S&P/Case-Shiller index is still down 29% from the peak reached in June 2006. Read more of this CNN Money article HERE.

When the housing market imploded in 2007 and took the economy with it, experts said the real estate market would never look the same again. Homebuyers can expect a more competitive market in 2013, and should start the mortgage lending process at least three months before they plan to start seriously looking because experts expect the process to take several months under new lending standards. Still shudder at the thought of investing in real estate? It’s time to reconsider. HERE’S WHY

The tax deal worked out by Congress maintains the lower Bush-era tax rates for individuals earning less than $400,000 a year and for couples making less than $450,000. However, the payroll tax holiday was allowed to expire, redistributing 2% of the take-home pay of workers back to the government…MORE HERE

The legendary investor has been buying up real-estate brokerages around the country as he bets on a housing turnaround. Now, he is partnering with Brookfield Asset Management, a Canadian real-estate investor, to more than double the size of his brokerage business. “I am confident that these partners will deliver value to the residential real estate industry, and I am pleased to have Berkshire Hathaway be a part of the new brand.”  Read more

Despite the recent passage of Proposition 30, the California budget crises remains largely unresolved. Prop 30 revenues–additional sales taxes and income taxes–are estimated to be $8 billion for FY2013, producing the first surplus in the general fund budget in 7 years.  Read more about Energy Resources and the California Budget HERE.

Realtors should know these Top 10 things when it comes to the 3.8% tax that’s part of health care reform (see the entire list HERE).  We like #4:  “If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will not pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.” (via The National Association of Realtors)