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Archive for December, 2012

Home prices rise again as housing recovery continues

Saturday, December 15th, 2012

We wrote “Is it the right time to buy a house?” in Feb 2009. We got some criticism for our post (check out the comments in that post). Market slowly recovered since then. Real estate market picked up momentum in 2011. Now, the hot news is “Single family home prices rose in September for 8th straight month”. Real estate market picks up the momentum slowly. The market doesn’t behave like Apple stock. It won’t go up and down 4% in one day.

Our article in 2009 encouraged the buyers who could afford to pay for the house. Whoever acted then would be happy now. The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.4 percent in September on a seasonally adjusted basis, in line with economists’ forecasts. Prices in the 20 cities rose 3.0 percent year over year, just topping expectations for a rise of 2.9 percent. More on this at NBC news. In some housing markets, sellers are getting multiple offers from buyers. I hope the market won’t go back to craziness of 2006.

U.S. Services Sector Continues to Grow

Sunday, December 9th, 2012

U.S. economy is definitely on the recovery mode. Housing data is positive in the recent weeks. Recently, The Institute for Supply Management (ISM) said its services index rose to 54.7 in November from 54.2 in October. The reading topped economists’ forecasts for growth of 53.5, according to a Reuters survey. Any reading above 50 is the good news; it indicates the expansion in services sector.

The survey’s business activity index also jumped to 61.2 in November from 55.4 in October. On the negative side, the employment index fell to 50.3 from 54.9. It’s better to keep an eye on ISM indexes to gauge the growth of the economy especially if you are an investor.

How to get perfect credit score?

Saturday, December 1st, 2012

Median FICO credit score is 723 and the possible high score is 850. If your credit score is better than 723, pat yourself on the back.  If not, check out this article from Wall Street Journal. Basically, it boils down to the following:

  1. Pay your bills on time.
  2. Have low credit-utilization. For example, if you have $10,000 credit available to you, use only $3,000 max from that credit line. Wall Street Journal article claims that “you cant have too much credit”. I doubt it. Keep the limit on total credit available to you. Do not respond to all credit card offers that are coming your way. Also, keep the limit on your spending. That should take care of it.
  3. Don’t get into collection mess.
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