Existing-Home Sales Hit Highest Level Since October
• June's Existing Home sales were up 2.3% from May, the 3rd consecutive monthly increase, reaching an annual pace of 5.04 million.
• Existing home Inventory was up 6.5% from a year earlier - 5.5 months supply.
• Median home prices were $223,300, up 4.3% from the year earlier.
• First time buyers represented 28% of all sales, low by historic standards as the jobs market remains sluggish.
• Distressed sales slide to 11% of total sales as fewer investors entered the market.
• June sales were down 2.3% from last year. However, 3 consecutive months of rising sales seems to indicate the housing market is recovering from a harsh winter.
• Borrowing rates remain near record lows at 4.13%
Mobile-Ad Spending Leaps, but Trails User Growth
Outlays Expected to Jump 83% This Year, but Remain Small Compared to Time on Devices
Research firm eMarketer estimates that spending on mobile advertising, which includes both smartphones and tablets, will soar 83% to nearly $18 billion in 2014. Newspapers will draw nearly $17 billion, while radio will bring in $15.5 billion.
Updated July 21, 2014 8:02 p.m. ET
Record 57 Million Americans Living in Multi-Generational Households
Is your post-college 20-something still living in the basement? Why, yes. Yes, he is.
Driven by young adults, the share of Americans living in multi-generational households continues to climb, a new report released Thursday finds, a trend that accelerated during the recession but has extended beyond it.
A record 57 million Americans—or 18.1% of the population—lived in multi-generational households in 2012, according to an analysis of Census data by the Pew Research Center, a think tank. The rate, up from 17.8% in 2011, has been on a steady march upward since its post-World War 11 low in 1980, when just 12.1% of the population utilized these arrangements.
Billionaire: Home Ownership Still the Best Investment
John Paulson, a billionaire hedge fund manager, says that for those looking for the best investment possible, they need to look toward home ownership.
At the Delivering Alpha conference, presented by CNBC and Institutional Investor, Paulson said: "I still think, from an individual perspective, the best-deal investment you can make is to buy a primary residence that you're the owner-occupier of. Today, financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let's say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment. And you've locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed."
Paulson stressed that an owner-occupied home — not a home bought to be a rental — is what he views as the best investment individuals can make right now.
"To buy it as an investment and rent it out — I'm not so enamored with that concept," he said.
Source: “Paulson: Buying a House Still Best Investment,” CNBC (July 17, 2014)
Nationally, apartment rents rose 0.8% in the second quarter from the first quarter. This is the 18 consecutive quarterly rent increase. Over the last 12 months, apartment rents rose 3.4% and vacancies are now 4.1%. The average rent is $1,099.
While rents are rising, incomes have remained stagnate. The median household income was $50,017 in 2012 vs $55,627 in 2007after adjusting for inflation.
With mortgage rates near historic lows, now is an attractive time to buy a home.
Apartment Rents Rise as Incomes Stagnate
Apartment landlords continued to push through hefty rent hikes in the second quarter, squeezing U.S. households that already are struggling financially after four years of steady increases.
The average monthly rent for an apartment rose to $1,099 in the second quarter, up 0.8% from the first quarter, according to data to be released Wednesday by real-estate research firm Reis Inc.REIS +0.96% That was the 18th consecutive quarter of rent increases. For the 12-month period ended in June, rents rose 3.4%.
Younger Population Grows More Diverse
Creating Widening Generational Race Gap Bewteen Over 65 and under 15
The demographic divide between older white Americans and younger minorities grew wider last year, according to Census Bureau data released Thursday, highlighting a long-term shift that might alter the interplay between generations.
In 2013, nearly 79% of people 65 and older were white, but for those younger than 15, the share of whites was just over half. In 2000, those proportions were nearly 84% and almost 61%, respectively.
The widening generational gap comes as the U.S. population as a whole grows older and more racially diverse. Non-Hispanic whites made up 62.6% of the country last year, down from 63% in 2012, continuing their long-term decline as the dominant American group. More whites died than were born last year, while the share of both Asian-Americans and Hispanics grew.
In some states, the generational gap was much larger—particularly in places that keep and attract retirees and are also home to many immigrant families. In Arizona, 82% of people 65 and over were white, while just 41% of those under 15 were white—a 41-point gap—according to calculations by William Frey, a demographer at the Brookings Institution who studies these data.
Other states with large generational race gaps include Nevada, New Mexico, California, Texas and Florida.
That creates a potential conflict, Mr. Frey said, between aging white baby boomers and younger minorities, who share few connections. Yet the older generation will depend on these young people to drive the economy and to support social programs for the elderly. The 65-and-over population continues to grow as the baby boomers age, highlighting the challenge for programs such as Social Security and Medicare that will increasingly rely on fewer workers to support more retirees.
"What we are seeing here is just the tip of the iceberg as white baby boomers continue to retire and whites make up ever smaller shares of the child-bearing population," Mr. Frey said. "It suggests that even greater priority should be given to providing these young minorities education opportunities and other resources to be successful as members of the labor force."
The number of Hispanic and Asian children grew, but overall, the total number of Americans under 15 dropped 0.6% in 2013.
The changing face of America is most apparent when looking at its youngest residents. Whites account for less than half the population in four states: California, New Mexico, Texas and Hawaii, plus the District of Columbia. But among children under age 5, whites are now below 50% in 15 states—with Alaska joining 14 others in 2013.
Overall, the median age for the U.S. population ticked up to 37.6 years from 37.5 in 2013. But in a few states—North Dakota, Montana, Wyoming, South Dakota and Oklahoma—the median age fell, driven in part by an oil and gas boom that has attracted new, younger workers, the Census Bureau said.
"We're seeing the demographic impact of two booms," Census Bureau Director John Thompson said in a statement. "The population in the Great Plains energy boom states is becoming younger and more male as workers move in seeking employment in the oil and gas industry, while the U.S. as a whole continues to age as the youngest of the baby boom generation enters their 50s."
Write to Laura Meckler at firstname.lastname@example.org
36% of millennials live with parents
A record 21.6 million millennials were not buying or renting on their own in 2012 - Lack of Jobs and Income
Young adults ages 18 to 34 are increasingly living at home, making it a new norm.
In 2012, 36 percent of people 18 to 31, the millennial generation, lived with their parents, according to a Pew Research Center analysis of U.S. Census Bureau data. Prior to the Great Recession in 2007, only 32 percent lived at home and 34 percent of the same-aged counterparts were residing at home in 2009, the 2013 analysis found.
In 2012, there was a record total of 21.6 million millennials living with their parents, an increase from 18.5 million in 2007, including at least a third and "perhaps as many as half are college students," according to the Pew Research Center analysis.
Why millennials are renting, not buying
A recent Gallup poll found similar results with 14 percent of adults between the ages of 24 and 34 living at home and roughly 50 percent of 18-to-23-year-olds, many of whom who are still in college, residing with their parents. Only half of the respondents who live at home have jobs with 67 percent of those living on their own being employed full-time, the poll said.
Improving Jobs and Income for Millennials, the largest demographic group, will spur a significent increase in new household formations.
New-Home Sales Skyrocket in May
Sales of newly built, single-family homes rose 18.6 percent to a seasonally adjusted annual rate of 504,000 units in May, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest rate since May 2008.
“These numbers are in line with our recent builder surveys, which indicate that more consumers are getting off the fence and coming back into the marketplace,” says Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “This increase is a welcome sign after a slow start to 2014,” says NAHB Chief Economist David Crowe. “As job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery.”
Regionally, new-home sales were up across the board. Sales rose 54.5 percent in the Northeast, 34 percent in the West, 14.2 percent in the South and 1.4 percent in the Midwest.
The inventory of new homes for sale held steady at 189,000 units in May. This is a 4.5-month supply at the current sales pace.
For more information, visit www.nahb.org.
Lynx visits Marblehead This Weekend - Free Deck Tours
MARBLEHEAD — Pirates are coming to Marblehead.
But don’t worry. These are patriotic pirates, manning the privateer Lynx under a letter of marque from President James Madison during the War of 1812. Of course, that war ended just about 100 years ago, but don’t tell the Lynx crew. They arrive on Thursday with the tall ship expected to sail ’round Marblehead Neck about 11:30 a.m. On landing, the crew will remain in character as their 19th-century counterparts.
Docking at State Street Landing, on Friday, Saturday and Sunday, they will give free deck tours of the ship and take some on sails twice a day, from 1 to 3 p.m. and 4 to 6 p.m. at a cost of $55, $30 for kids under 12.
This is a return visit for Lynx, which was last here in 2011. It’s more appropriate than ever as the nation continues observing the War of 1812, the conflict that saw the original Lynx in action.
“Marblehead is the birthplace of the American Navy, and the arrival of the Lynx will allow us to continue to celebrate our maritime heritage,” said Deb Payson, executive director of the Marblehead Chamber of Commerce, which sponsored the visit. Harbormaster Webb Russell is also helping to make the visit possible.
The Lynx is based in Portsmouth, New Hampshire, said Don Peacock, 57, president of the nonprofit Lynx Educational Foundation. But it’s been “up and down the East Coast” celebrating the role that such vessels played in America’s battle with a much larger British Navy. The foundation was begun by a group led by Woodson Woods in order “to teach and remind both young and old at every port what life was like in that era,” Peacock said.
While little known today, the War of 1812 gave America the battle cries “Don’t tread on me,” “Free trade and sailor’s rights” and “Don’t give up the ship,” Peacock said. The 14-ton replica Lynx was built in Rockport, Maine, at a cost of $3.5 million in 2001. She carries six carronades, undersized cannons that would have been standard on any privateer. They’re small for a very good reason. “You didn’t want to sink the prize,” Peacock said. The idea was to capture the enemy vessel by bludgeoning it into surrender and sending it back to an American harbor where it would bring a good price.