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Economic News

Home prices slide in October, but continue to rise on a year-over-year basis

Home prices are on their way up on a national level, when compared to 2011, but actually fell in October, with another fall forecast for November. Housing continues on the long road to recovery.

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Home prices continue to rise

According to the CoreLogic Home Price Index (HPI) released today, home prices nationally, including distressed sales, rose 6.3 percent in October 2012 compared to October 2011, marking not only the largest increase since June 2006, but the eighth consecutive monthly year-over-year increase. The company forecasts an even healthier rise of 7.1 percent for November to be released next month, although the company does forecast a decrease of 0.3 percent compared to October.

While the change in October from September was a minimal 0.2 percent decrease in home prices, CoreLogic notes that “decreases in month-over-month home prices are expected as the housing market enters the offseason.” The HPI reveals that all but five states experienced price increases in October 2012 compared to October 2011.

home prices rise

Including and excluding distressed sales

Revealing an even brighter spot for the hard hit sector of the economy, CoreLogic reports that when home prices are analyzed with distressed sales taken out of the equation, home prices still rose 5.8 percent in October 2012 compared to October 2011.

Excluding distressed sales, November 2012 house prices are poised to rise 7.4 percent year-over-year from November 2011 and by 0.5 percent month-over-month from October 2012.

“The housing recovery that started earlier in 2012 continues to gain momentum,” said Mark Fleming, Chief Economist for CoreLogic. “The recovery is geographically broad-based with almost all markets experiencing some appreciation. Sand and energy states continue to experience the most robust appreciation and some judicial foreclosure states are even recording increasing prices.”

Regional performance varied

Including distressed sales, the five states with the highest home price appreciation were Arizona (+21.3 percent), Hawaii (+13.2 percent), Idaho (+12.4 percent), Nevada (+12.4 percent), and North Dakota (+10.4 percent).

Excluding distressed sales, the five states with the highest home price appreciation were Arizona (+16.6 percent), Hawaii (+12.2 percent), Nevada (+10.8 percent), Idaho (+9.7 percent), and California (+9.7 percent).

Including distressed sales, the five states with the greatest home price depreciation were Illinois (-2.7 percent), Delaware (-2.7 percent), Rhode Island (-0.6 percent), New Jersey (-0.6 percent), and Alabama (-0.3 percent).

Excluding distressed sales, this month only three states posted home price depreciation Delaware (-2.1 percent), Alabama (-1.5 percent), and New Jersey (-0.2 percent).

home prices mapped

home price data

Forecasting housing in 2013

“We are seeing an ongoing strengthening of the residential housing market,” said Anand Nallathambi, president and CEO of CoreLogic. “Reduced inventories and improving buyer demand are contributing to stability and growth in home prices which is essential to the long term health of the housing market and the broader economy.”

Meanwhile, Dr. Lawrence Yun, Chief Economist warns, however, that if we go over the fiscal cliff, or if lending conditions tighten, a housing recovery could be threatened, so while housing is seeing signs of improvement, it continues to be in a precarious position as it marches down the very long road to recovery.

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3 Comments

3 Comments

  1. Lahore Real Estate

    December 5, 2012 at 6:21 am

    The reason of home prices rising is competition of buyers with rival parties and also investors have joined buyers to invest their money in the real estate business that is too beneficial for sellers. It might remain the same in the coming year. Home prices have increased as compared to previous years.
    Marketing Manager
    zameen.com

  2. Lahore Real Estate

    December 5, 2012 at 6:24 am

    The reason of home prices rising is competition of buyers with rival parties and also investors have joined buyers to invest their money in the real estate business that is too beneficial for sellers. It might remain the same in the coming year. Home prices have increased as compared to previous years.

  3. Lahore Real Estate

    December 5, 2012 at 6:27 am

    The reason of home prices rising is competition of buyers with rival parties and also investors have joined buyers to invest their money in the real estate business that is too beneficial for sellers. It might remain the same in the coming year. Home prices have increased as compared to previous years.
    Marketing Manager
    http://www.zameen.com/

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Economic News

Boomers retirement may be the true reason behind the labor shortage

(ECONOMY) Millennials and Gen Z were quick to be blamed for the labor shortage, citing lazy work ethic- the cause could actually be Boomers retirement.

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Older man pictured in cafe with laptop nearby representing boomers retirement discrimination.

In July, we reported on the Great Resignation. With record numbers of resignations, there’s a huge labor shortage in the United States. Although there were many speculations about the reasons why, from “lazy” millennials to the number of deaths from Covid. Just recently, CNN reported that in November another 3.6 million Americans left the labor force. It’s been suggested that the younger generations don’t want to work but retiring Boomers might be the bigger culprit.

Why Boomers are leaving the labor force

CNN Business reports that 90% of the Americans who left the workplace were over 55 years old. It’s now being suggested that many of the people who have left the labor force since the beginning of the pandemic were older Americans, not Millennials or Gen Z, as we originally thought. Here are the reasons why:

  • Boomers are more concerned about catching COVID-19 than their younger counterparts, so they aren’t returning to work. Boomers are less willing to risk their health.
  • The robust real estate market has benefitted Boomers, who have more equity in their homes. Boomers have more options on the table than just returning to work.
  • Employers aren’t creating or posting jobs that lure people out of retirement or those near retirement age.

As Boomers retire, how does this impact the overall labor economy?

According to CNN Business, there are signs that the labor shortage is abating. Employers are starting to see record number of applicants to most posted jobs. FedEx, for example, just got 111,000 applications in one week, the highest it has ever recorded. The U.S. Bureau of Labor Statistics projects that the pandemic-induced increase in retirement is only temporary. People who retired due to the risk of the pandemic will return to work as new strategies emerge to reduce the risk to their health. With new varients popping up, we will have to keep an eye on how the trend ultimately plays out.

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Economic News

Is the real estate industry endorsing Carson’s nomination to HUD?

(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

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NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…

>>>>>Click to continue reading…<<<<<

#CarsonHUD

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Economic News

Job openings hit 14-year high, signaling economic improvement

The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.

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Job openings hit a high point

To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.

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The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.

Good news, bad news, depending on your profession

That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.

Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.

What’s next

If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.

If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.

Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.

#JobOpenings

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