Page 24 - ARUBA TODAY

Thursday 13 april 2017 BUSINESS
A24

Stock indexes post modest losses; bonds slump Mission nearly impossible this

ALEX VEIGA or 1.3 percent, to 1,359.20. of industrial coatings and spring: Finding a home to buy
AP Business Writer Twice as many stocks fell as construction fasteners dis-
Industrial and materials rose on the New York Stock closed that its business was ALEX VEIGA
companies led U.S. stocks Exchange, while trading hurt by higher freight ex- AP Business Writer
modestly lower Wednes- in declining stocks was 2.5 penses and inventory NEW YORK - Anyone eager to buy a home this spring
probably has reasons to feel good. Job growth has
been solid. Average pay is rising. And mortgage
rates, even after edging up of late, are still near his-
toric lows.
And then there’s the bad news: Just try to find a
house.
The national supply of homes for sale hasn’t been this
thin in nearly 20 years. And over the past year, the
steepest drop in supply has occurred among homes
that are typically most affordable for first-time buyers
and in markets where prices have risen sharply.
In markets like San Diego, Boston and Seattle, com-
petition for a dwindling supply has escalated along
with pressure to offer more money and accept less
favorable terms.
“Sellers will have the edge again this year,” said
Ralph McLaughlin, chief economist for Trulia, a real
estate data provider. “Homebuyers are really go-
ing to be scraping the bottom of the barrel as far as
housing choice is concerned.”
The intensity of the competition this spring has sur-
prised even sellers like Kathleen Mulcahy, a 37-year-
old product manager in Seattle.
Trader Tommy Kalikas, left, works on the floor of the New York Stock Exchange. Industrial and ma- Within a week of listing her one-bedroom, one-bath
terials companies led U.S. stocks modestly lower Wednesday on another day of subdued trading condo, Mulcahy received 21 offers — all above her
ahead of the long Easter holiday weekend. asking price of $398,000. Most of the offers came with
(AP Photo/Richard Drew) built-in triggers to automatically rise in case a rival
bidder sweetened a bid. In the end, she accepted
day on another day of sub- times as heavy as that of costs. The stock lost $4.05 to an offer of $500,000 — all cash.
dued trading ahead of the stocks that closed higher. $46.29. “A lot more than I expected,” Mulcahy said.
long Easter holiday week- The yield on the benchmark Other laggards in the sec- Yet the changed landscape cuts both ways: Facing
end. The slide marked the U.S. 10-year note fell to 2.25 tor included United Rentals, higher prices and competition herself, Mulcahy has
second decline in a row for percent from 2.32 percent which slid $4.80, or 3.8 per- decided for now to put off buying another home.
the stock market, extend- late Tuesday. That’s its low- cent, to $121.13, and Rock- “There’s very little available, and it’s just too expen-
ing its losses for the month. est yield since November. well Automation, which sive right now, so I’m going to wait,” she said. “I’ll
Energy stocks also fell as “That’s indicative of peo- shed $5.88, or 3.8 percent, probably rent for two or three years.”
oil prices snapped a six- ple, once more, taking that to $150.23. About 1.75 million homes were for sale nationally at
day winning streak. Utilities, opinion of being risk-off, or Investors bid up shares in the end of February, according to the National As-
phone companies and not willing to make a bet Blackberry after arbitra- sociation of Realtors. That’s down 6.4 percent from a
other high-dividend stocks that equity prices are going tors awarded the smart- year earlier and only slightly up from January, when
were among the biggest to be up because of higher phone maker $814.9 million listings reached their lowest point since the associa-
gainers. Bond prices rose, earnings to be reported to resolve a dispute with tion began tracking them in 1999. All told, the supply
sending yields lower. here for the first quarter,” Qualcomm over royalty of homes for sale has fallen on an annual basis for
“The market is kind of on said Terry DuFrene, global overpayments. The stock the past 21 months.
hold until we start get- investment specialist at J.P. gained $1.23, or 16 per- Among the factors that have fueled the decline in
ting earnings reports and Morgan Private Bank. cent, to $8.93. homes for sale:
you start to read the body Companies are due to be- In Europe, Germany’s DAX — Since 2008, the average time homeowners have
language on what man- gin disclosing their latest rose 0.1 percent, while stayed in their houses before selling has doubled to
agements are saying,” quarterly results over the France’s CAC 40 dipped nearly eight years, according to Attom Data Solu-
said Thomas Martin, port- next few weeks, beginning less than 0.1 percent. Brit- tions.
folio manager at GLOBALT on Thursday with several ain’s FTSE 100 fell 0.2 per- — Many homeowners aren’t selling for fear they
Investments in Atlanta. big banks. cent. Earlier in Asia, Ja- wouldn’t find a new home they would like and could
“We’re getting this slow Among the stocks that pan’s benchmark Nikkei afford. Some who had locked in ultra-low fixed mort-
churning really until we start helped pull the market 225 stock index slid 1 per- gage rates may be reluctant to take on a new loan
getting some information.” lower Tuesday was Trac- cent after the dollar fell at a higher rate. Others may wish to sell but can’t be-
The Standard & Poor’s 500 tor Supply, which sank 8.3 under 110 yen for the first cause they own one of the 3.2 million homes worth
index slid 8.85 points, or 0.4 percent. The farm equip- time in five months, pressur- less than what’s owed on their mortgage.
percent, to 2,344.93. The ment retailer said sales of ing the country’s exporters. — Some homeowners own other properties they rent
Dow Jones industrial aver- seasonal goods fell during Hong Kong’s Hang Seng out and have little incentive to give up the steady
age fell 59.44 points, or 0.3 the first quarter. The stock reversed its losses in the fi- rental income, especially while they’re also benefit-
percent, to 20,591.86. The fell the most among com- nal hour of trading, rising ing from rising home values.
Nasdaq composite index panies in the S&P 500, shed- 0.9 percent. South Korea’s — Investors, who typically keep properties for dis-
lost 30.61 points, or 0.5 per- ding $5.86 to $64.61. Kospi climbed 0.2 percent. proportionately long periods, own a larger share of
cent, to 5,836.16. Industrials sector stocks Benchmark U.S. crude houses. Between 2006 and 2016, the share of U.S.
Small-company stocks did were the biggest decliner snapped a six-day winning single-family houses and condos owned by investors
far worse than the rest of in the S&P 500. Fastenal led streak, losing 29 cents to averaged around 30 percent, according to Attom,
the market. The Russell 2000 the sector slide, tumbling close at $53.11 a barrel in and reached 35 percent last year.q
index gave up 17.75 points, 8 percent after the maker New York. q