Sunday, January 29, 2017

Monday January 30 2017 Housing and Economic stories


Americans Are Flipping Houses Like It’s 2006 - (www.bloomberg.com) Housing market investors have pushed the share of flips, or properties sold twice in 12 months, to its highest level in a decade. A tactic that helped define the height of home-buying madness in the U.S. in the years before the market collapsed is rearing its head again. Home flippers, who buy homes as a speculative bet on short-term price appreciation, accounted for 6.1 percent of U.S. home sales in 2016, according to Trulia, which defines a flip as a property sold twice in a 12-month period in arm’s-length transactions. That’s the highest share since 2006, when flips accounted for 7.3 percent of sales.

A Rising Tide of Used Cars Threatens Ford’s Profits - (www.bloomberg.com) All those years of rising U.S. auto sales are starting to work against carmakers. A glut of used vehicles has started to depress prices. That trend will intensify as Americans will return 3.36 million leased cars and trucks this year, another jump after a 33 percent surge in 2016, according to J.D. Power. The fallout has already begun, with Ford Motor Co. shaving $300 million from its financial-services arm’s profit forecast for this year. “Ford is the canary in the coal mine,” said Maryann Keller, a former Wall Street analyst who’s now an auto industry consultant in Stamford, Connecticut. This drag may be hitting the rest of the industry, too. A National Automobile Dealers Association index of used-vehicle prices declined each of the last six months of last year. When auto lenders lease out vehicles, they charge the customer a monthly payment and make an assumption of the car or truck’s value when it will be returned for resale. If vehicles are depreciating more than expected, losses can pile up.

Google Permanently Bans 200 "Fake News" Sites – (www.zerohedge.com)  From November to December 2016, we reviewed 550 sites that were suspected of misrepresenting content to users, including impersonating news organizations.  We took action against 340 of them for violating our policies, both misrepresentation and other offenses, and nearly 200 publishers were kicked out of our network permanently. In addition to all the above, we support industry efforts like the Coalition for Better Ads to protect people from bad experiences across the web. While we took down more bad ads in 2016 than ever before, the battle doesn’t end here. As we invest in better detection, the scammers invest in more elaborate attempts to trick our systems. Continuing to find and fight them is essential to protecting people online and ensuring you get the very best from the open web. Google has not disclosed the list of 200 sites it had permanently banned.

U.S. home sales drop as supply tumbles to 17-year low - (www.reuters.com) U.S. home resales fell more than expected in December as the supply of houses on the market dropped to levels last seen in 1999, but the housing market recovery remained intact against the backdrop of a tightening labor market. The National Association of Realtors said on Tuesday existing home sales decreased 2.8 percent to a seasonally adjusted annual rate of 5.49 million units. In addition to the lack of properties to purchase, rising home prices and mortgage rates also likely sidelined some buyers last month. The drop in sales followed three straight months of increases and probably does not signal impending housing weakness, with the labor market near full employment and the economy strengthening.

Federal Debt Projected to Grow by Nearly $10 Trillion Over Next Decade - (www.nytimes.com) After seven years of fitful declines, the federal budget deficit is projected to swell again, adding nearly $10 trillion to the federal debt over the next 10 years, according to projections from the nonpartisan Congressional Budget Office. The numbers reveal the strain that government debt could have on the economy as President Trump presses to slash taxes and ramp up spending. The deficit figures released Tuesday will be a major challenge to House Republicans, who were swept to power in 2010 on fears of a bloated deficit and who made controlling red ink a major part of their agenda under former President Barack Obama.



No comments: