Small business owners weren’t feeling too optimistic in June. Uncertainty surrounding the endless stream of delays and capitulations of certain provisions of the new healthcare laws and as economic growth was revised down for the first quarter of the year. In addition, the growth forecast for the second quarter is not looking good. The National Federation of Independent Business’s monthly economic index fell nearly a point while six of the ten components fell.
Over in the housing sector, CoreLogic reported this morning that the foreclosure front is on the mend. Foreclosure inventories have dropped by 29% from May of 2012 to May of 2013 and down 3.3% from April to May. In addition, serious delinquent mortgages are at the lowest level since December 2008. Corelogic went on to say that completed foreclosures fell 27% compared to May of 2012, but were up 3.5% from April to May. Corelogic said that it “continues to see a sharp drop in foreclosures around the nation and with it a decrease in the size of shadow inventory.”
One of the reasons for the tightening of inventories in key markets around the country has been due to large institutional investors buying up single family homes and turning them into rental properties. The increase in investor buying has been one of the key factors that has been driving home prices higher this year. In April, investors accounted for 10% of the homes sold in the nation’s 100 busiest real estate markets.