Sunday, December 15, 2013

Monday December 16 Housing and Economic stories


Vacant houses are being held off the market to prop up prices - (www.theatlanticcities.com)   The 2013 third quarter Census Homeownership and Vacancy survey shows that the vacancy rate is still above its pre-bubble level and remains unchanged from one year earlier. This might come as a surprise to house hunters, who have struggled with limited inventory when trying to find a home to buy or rent, but an unusually high share of vacant homes today is being held off the market. The elevated vacancy rate discourages new construction activity and is therefore one of the major hurdles to a full housing recovery. To understand why vacancies are still widespread and what impact they have, we dug deeper into the Census data as well as other data sources that report vacancies at the metro level. Here's what we found. Nationally, Vacancy Rate Still Above Pre-Bubble Level: In the third quarter of 2013, 10.2 percent of housing units were vacant, excluding vacant homes that the Census classifies as "seasonal," such as beach homes. Vacant homes include those for sale or for rent, as well as homes "held off market" for various reasons. This vacancy rate of 10.2 percent  – the share of homes that are empty – was unchanged from 2012 Q3 and well above the pre-bubble level. In fact, the vacancy rate today (10.2 percent) is closer to its peak during the recession (11.0 percent in Q3 2010) than before the bubble (8.8 percent in Q3 2000).

Criminally Insane REALTOR Bagged on Fraud and Money Laundering Charges - (www.chicagotribune.com)  A Northwest Side real estate agent and former banker has been arrested on fraud charges in an alleged scheme to hoodwink his own bank into illegally lending $650,000 to a Chicago police lieutenant for the purchase of an apartment building, then keeping a large chunk of the cash for himself. Robert Michael, 62, an owner of Michael Realty and former CEO of the now-defunct Citizens Bank and Trust, was indicted on one count each of bank fraud, making false statements to a bank, and money laundering. Police Lt. Erroll Davis, 52, was charged with one count of filing a false federal income tax return. Also involved in the alleged scheme — though not charged — was Regina Evans, the former police chief of Country Club Hills who has pleaded guilty to stealing hundreds of thousands of dollars in state grant money and spending it on friends, family and debt payments on a theater she owned.

Clergy tax exemption struck down by court - (www.seattletimes.com) Under a law passed by Congress in 1954, ministers don’t pay income taxes on compensation that is designated part of a housing allowance. A federal judge has struck down a law that gives clergy tax-free housing allowances, a decision that could have far-reaching financial ramifications for pastors across the United States. In her decision Friday, U.S. District Judge Barbara Crabb in Wisconsin wrote that the exemption “provides a benefit to religious persons and no one else, even though doing so is not necessary to alleviate a special burden on religious exercise,” the Wisconsin State Journal reported. Pastors can use the untaxed income to pay rental-housing costs or the costs of homeownership, including mortgage payments and property taxes.

Unprecedented anxiety over jobs – (www.washingtonpost.com) What matters in this new anxiety, what unites the people who worry more now than ever, are income and education. Workers who earn less, and workers who didn’t graduate from college, fear losing their already weaker livelihoods more than anyone else. Spend a day with John Stewart — a man who has worked low-wage jobs since the late ’70s — and you start to understand why. Back then, fewer worries: His first job — he doesn’t remember if it was in 1978 or ’79 — was cooking eggs and pancakes at a five-and-dime in New York City. He made $2.35 an hour, which would be a little less than $8 an hour today. He was 19 years old, a high school graduate who had grown up in Brooklyn and North Carolina. He hadn’t gone to college. He was sending chunks of his paycheck south to his parents, who were battling health issues. It was an anxious time in the national economy, with inflation running high.

US Consumer Confidence Falls to 7-Month Low - (abcnews.go.com)  U.S. consumers' confidence in the economy fell in November to the lowest level in seven months, dragged down by greater concerns about hiring and pay in the coming months. The Conference Board said Tuesday that its index of consumer confidence dropped to 70.4 from 72.4 in October. The October reading was higher than initially reported, but still well below the 80.2 reading in September. November's drop comes after the 16-day partial government shutdown caused confidence to plunge in October. The declines in both months were driven by falling expectations for hiring and the economy over the next six months. Some economists also attributed the weakening confidence to Americans' frustrations and worries about the implementation of the Obama administration's health care reform. "Disgust with politicians and government policy is what's holding back expectations," said Ted Wieseman, an economist at Morgan Stanley.






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