From HousingWire:
Existing home sales continue to climb at highest pace since 2007
Existing home sales increased for the third consecutive month in November to the highest pace in almost 10 years, according to the most recent report from the National Association of Realtors.
Existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.7% to a seasonally adjusted rate of 5.61 million in November. This is up from a downwardly revised 5.57 million in October, up 15.4% from last year’s 4.86 million and the highest since February 2007.
The median existing-home price rose once again in November to $234,900, up 6.8% from last year’s $220,000. This marks the 57th consecutive month of year-over-year gains.
Inventory, on the other hand, dropped 8% from October to 1.85 million existing homes available for sale. This is now 9.3% below last year’s 2.04 million, and the 18th consecutive month of annual decreases.
“Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017,” Yun said. “Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country.”
However, home builders reported a significant boost in confidence after President-elect Donald Trump won the election, according to the National Association of Home Builders/Wells Fargo Housing Market Index, leading some to believe that it could push new home builds up in 2017.
Properties are now staying on the market slightly longer than before at 43 days, up from 41 days in October, but down significantly from last year’s 54 days. Short sales were on the market the longest at a median of 110 days in November, while foreclosures sold in 55 days and non-distressed homes took 41 days. Overall, 42% of homes sold in November were on the market for less than a month.
Good Morning New Jersey
A case tailor made for Joyce…
http://www.nj.com/sussex-county/index.ssf/2016/12/ex-newton_cop_accused_in_sex_assault_due_in_court.html
There is a side of me that would prefer to cut and run after we sell our place, but something tells me that the golden handcuffs will prevail. If so fine, but it will be with some trepidation that I trade up in this particular place.
So, are you staying or leaving? Perhaps you never felt comfortable here. And what’s this about being in the 1%? Why don’t you just wipe out your paper pen1s as you call it and state your salary? Who boasts such things on an internet forum? [sarcasm intended]
It’s always fun to hear from you Eddie.
1% in NJ is $539k a year.
Must be nice. Props to anyone that makes it here. Truly a beautiful accomplishment.
grim says:
December 22, 2016 at 9:01 am
1% in NJ is $539k a year.
9:01….fo sho.
Thanks Pumps,
It took a lot of school, a lot of self-study and skill-sharpening, an MBA, and about 20 years of challenging & successful work in my field before I broke through and started making what I consider big money. Keep in mind that at the high end, most compensation isn’t salary – it’s highly variable performance based bonus and profit-sharing. Few people can make that kind of money for long if they kick their legs up on the desk.
Well, the drawback of making that much in NJ is that you get a punitive 8.97% state income tax, including on income from capital gains, as a reward. Only California is materially worse at 13.3%
9:08 Me? I just married well.
9:28 – We thank you for your contribution towards the state debt we accrue.
Congrats, truly amazing feat to make it to the 1%. It’s even more amazing when you think about that accomplishment on a world scale. If you are 1% in Jersey, you are even in a more prestigious group on a world scale. Beating out billions of people, absolutely insane when you think about it. Props!
Taxes suck, but you know it comes with making money. A lot of people to take care of, and unfortunately, that burden falls on the hard workers. Not fair, but only way to provide the stability in society to continue making money. Don’t throw these crumbs, and they will f the economy up with their riots. Just tell yourself, you are profiting off their consumption, more people there are consuming, the more rich there can be. It’s the only way to make yourself feel better about paying all these taxes. As for the corporations that you support with corporate welfare, just tell yourself it helps make the economy stronger and keep jobs here, only way to make yourself feel better about it. Just try to look at the positives instead of the negatives. Yes, this states taxes you to hell, but it also provides a heavenly opportunity to make money.
Blumpkin is off his meds again.
N.J. newspaper bill not dead, Sweeney says
Updated: DECEMBER 22, 2016 — 1:08 AM EST
http://www.philly.com/philly/news/breaking/20161222_N_J__newspaper_bill_not_dead__Sweeney_says.html
My biggest concern is sustainability….pure and simple. It is one thing to gross over $650k once or twice, but must be noted that most people don’t make this kind of cash over a long period of time. The arc of one’s earnings reflect their age and career path. My biggest issue with high consumption places like Northern NJ is that is it tough to save any money, let alone live here on a budget. Kudos to those who can….
1% and you’re complaining about the cost of living here? And you “married well”? lol!
Mexicans killing it.
How much money made in the black market that destroys the income data. People poor on govt data, but killing on the black market.
http://www.foxnews.com/us/2016/12/21/border-patrol-seizes-3m-from-two-cars-heading-to-mexico.html
I’m sure those guys made that money cutting grass.
Either way works. What’s the saying…..It’s better to be lucky than good.
Essex says:
December 22, 2016 at 9:37 am
9:08 Me? I just married well.
10:13 Damn straight….
10:07…Like the great Tom Petty once said, “even the losers get lucky sometimes”….
lol…classic!
Essex says:
December 22, 2016 at 10:14 am
10:07…Like the great Tom Petty once said, “even the losers get lucky sometimes”….
The good folks in charge of spending Montclair taxpayer’s money found a new way to blow more of it.
Parking meters. For the low cost of about $5000 per parking meter, they will replace their old parking meters with 545 new ones.
But what might you ask could warrant spending so much for a parking meter? Silly rabbit, they come equipped with solar panels!
Bye bye $250,000.
With all the hoopla around $15 minimum wage needed and automation taking jobs away…maybe it’s time for Washington to think about eliminating the income tax entirely for low wage earners to lower the cost of their employment below the cost of a robot. It would never happen though.
ChiFi,
Sorry, took a while to figure out budget… Saving 3K/mo
chicagofinance says:
December 21, 2016 at 2:00 pm
not enough info to answer
expenses? (or reverse engineer….how much are you saving?)
I will consult via e-mail for up to 1 hour of my time at no charge….I have no ax to grind…..(please) donate to this website if you want to pay…..
If you send your kids to private college in the years 2028-2038 or so, they must graduate in 4 years and expect to pay out about $800,000 cumulative in nominal dollars at those future dates.
the big four O says:
December 21, 2016 at 10:35 am
Hey all,
Looking for some financial advice.. Do you think I should consult with a CFP or just open a 529 and keep it moving? I’m about to turn 40 w/ 2 kids under five years old. Haven’t saved for their education thus far and I’m wondering if I’m on the right pace for my own retirement.
no CC/other debt
my income = 150k
wifes income = 100k
savings = 70k
401k = 350k combined
equity primary home = 200k
equity in rental home = -10k
Anyone have any insight to how the black market impacts income data and overall economy?
Should America eliminate cash in the name of “real data,” as opposed to false data driving policy which leads to extreme inefficiency in the economy and tax system?
Ben, the $15 minimum wage is purely pushed as union wages are often tied to the federal minimum wage. It will just lead to more automation, offshoring, etc…The government moves far to slowly to take on the corporations, hence the success in taxation.
“The sad reality is that progress has a price tag. Yes, we are far richer because of great inventions that boosted productivity and improved lives. But that doesn’t change the fact that real workers with real families often experienced genuine anguish when jobs in some sectors disappeared. And that’s still happening today.
And workers are largely blameless when job losses occur. All they did was exchange honest work for honest pay. It was the capitalists who made mistakes by not managing companies effectively and not allocating capital efficiently (or, to be more charitable, they simply failed to anticipate major changes that were about to occur).
By the way, this isn’t an argument for government intervention. We would be much poorer today if politicians tried to save jobs every time there was creative destruction in the economy. Perhaps most important, every job that they “saved” would be offset by the jobs (and prosperity) that weren’t created or didn’t materialize because the clumsy foot of government replaced the invisible hand of the market.
What Bastiat taught the world in the 1800s is still true today. We have to consider both the seen (the jobs that are saved) and the unseen (the greater number of jobs that don’t get created) when contemplating the impact of government.
This is why I want the economy to be as dynamic and innovative as possible so that displaced workers can find new positions as quickly as possible, hopefully earning even more money.”
https://fee.org/articles/capitalism-destroys-jobs-and-thats-a-good-thing/?utm_medium=push&utm_source=push_notification
Eliminating cash will stop me from working on the side at night.
If they pulled an Rupee Switcheroo here, the global economy would collapse. Dollar-based black market makes the world go round.
Cash is used for small transactions mostly by poor people. Sure some cash business keep two sets of books, but it isn’t as massive amount of retail consumer transactions as it used to be, only 14% of all consumer transactions are cash.
http://www.frbsf.org/cash/publications/fed-notes/2014/april/cash-consumer-spending-payment-diary
We are not Italy, where 40% for the economy is black, in Small towns they still deal in barter to avoid the tax man.
There is $1.4 trillion in US printed cash circulation. Approx 2/3rds of all $100 Bills are overseas.
http://www.npr.org/sections/money/2013/04/12/177051690/most-100-bills-live-outside-the-u-s
Giving your babysitter a $20 is black market. I would say easily 10-15% of economy, probably 2-3 trillion, this would include non-cash transactions – wire transfers, etc.
Thanks for clearing this up. Def does more harm than good if you eliminate cash. I was just looking at it from a data position. Feel like the cash makes it impossible to truly measure economic activity.
essex must have received an inheritance.
They are talking about detroit, and I think this supports your post to a tee.
“It was because Mayor Mike Duggan—and Rick Snyder, the governor, too, by the way, one a Democrat, one a Republican—were saying, “Let’s go work to make this work for society.” And we were all in it. We didn’t just come here to throw money at it, which is easy to do and can often be wasteful.”
https://www.bloomberg.com/news/features/2016-12-22/jamie-dimon-on-trump-taxes-and-a-u-s-renaissance
Chicagofinance says:
December 22, 2016 at 8:54 am
Essex: When it comes to government it takes a crisis for real change; The reason is that those who are going to have their DNA on the changes don’t want to be held responsible even though they know it’s the right thing
1:44 cont
“It shows you the worst part of public policy. You could throw money at it and, unfortunately, it took the train wreck almost to happen to bring in a mayor with a vision and leadership skills to get this done. If we help the city, it helps our business. Remember, we bank here. We need a healthy, vibrant bank. We can do it elsewhere, too, and help communities where we are. It’s good for society and obviously very good for business.”
Really good article. Give it a read.
I have to say, America is indeed heading in the right direction. Honestly, you can dislike the crap that comes out of trumps mouth, but you can’t deny what he is doing for America. It is indeed time to make America great again. When America is great, so is the world.
“Obviously, I was dead wrong about that. But you had a complete upheaval. The Republicans are in charge, and they have not been anti-business the way you’ve seen the Democrats largely be anti-business for years. I think if you are going to be president, you should have the best people sitting around a table. I think it’s a mistake for the American public to constantly be told that if you work for an oil company or you work for a bank, that automatically makes you bad. I think a lot of these people are very qualified people who are patriots. They’re going to want to help the country. They’re not going to try to help their former company. These are people with deep knowledge that will hopefully do a great job.
I think it’s a reset moment for how businesses are going to be treated: 145 million people work in America; 125 million of them work for private enterprise; 20 million work for government—firemen, sanitation, police, teachers. We hold them in very high regard. But you know, if you didn’t have the 125 you couldn’t pay for the other 20. Business is a huge positive element in society. But for years it’s been beaten down as if we’re terrible people. So I think it’s a good reset.
Detroit is a perfect example where civil society, not-for-profits, government, business all work together to improve the lives of American citizens. If you can duplicate what they’ve done in Detroit around the country, you’re going to have a huge renaissance.”
Ben – I’ll go the other way. Eliminate the income tax between x dollars and y dollars gross income. I’m not sure what the numbers are, but if you definitely paid some tax to earn $40K on the books, but were free and clear of income tax from $40K to $60K – I bet you would see a whole hell of a lot of people and families jump to $60K reported. Back in the mid 80’s when I was an aerospace software engineer (Reagan govt contracts) my company had a system that really encouraged you busting your a$$. We were all exempt salary but you could earn “straight time” for overtime. There was only two requirements:
1. You had to be pre-approved to work overtime (which was easy to get on most projects).
2. You had to work a minimum of 10 hours overtime to be paid for it. 2,4,6 or 8 hours, no soup for you! 10 hours plus, you banged a larger check.
There was another rule, your overtime was your base salary pro-rated based on a 40 hour work week, but the maximum you could be paid for overtime was $22/hour (which was pretty big money back then). There were family guys in their early thirties banging 20 hours overtime a week, even though their overtime rate was *below* their pro-rated salary rate (think earning .85 X for over time instead of 1.5 X). Most of us young guys banged at least 12-15 hours of OT, but there was a better incentive still. If you worked 2nd shift (loose definition was you started 2PM or later) you got a 10% shift differential over your entire gross. If you worked 3rd shift (loose definition was that you started before 6AM) you got 15% over your gross. This all got billed to the government, but it was a framework for ultra high productivity and not having deadlines slip. If you made your project look good, you could get an 8-15% raise every year on top of everything else. I had friends on wall street who started out at $12K per year and they thought they were doing good making $40K within 2 years, but had to work the phones and do 60 hours every week. Myself and my aerospace buddies started at $27K and made $35K our first year and were above $50K in 2 years and we didn’t have to add $$ to the company’s bottom line, just do good work, have people there from 5AM to 11PM every day and don’t let deadlines slip. No time clocks either, you just had to have a valid “charge number” and fill out your card each week. I also got an early taste of how management compensation works back then. Every 6 months they gave me a new guy, starting when I was 6 months in (as we hired maybe 180 engineers every June and 70 or so every January). When my team got results, I got credit, which I found very strange at the beginning, but I got used to it fast.
With all the hoopla around $15 minimum wage needed and automation taking jobs away…maybe it’s time for Washington to think about eliminating the income tax entirely for low wage earners to lower the cost of their employment below the cost of a robot. It would never happen though.
The late 90’s were even better, when I was making close to $100/hour with Full benefits and through some fluke (because we mostly had lower rate guys) I received 1.5 X overtime too. I always worked at least 10 hours overtime per week (which I learned from my early days in aerospace) which paid my for all my vices plus my landscape guy. It’s amazing what you can do with an extra $2K per month.
Isn’t that the drive behind EITC?
grim – not really. EITC starts low and goes away as the income goes up, right? I’m talking about paying tax up until a threshold and only then your “free money” kicks in for the next $20K. In privileged white guy parlance, what if your family gets exactly the same tax treatment as now except you endure no further tax above $175K until you get to $225K? Do you think maybe a lot of dual income Pumpkin type couples hovering at $160K might just create some additional side jobs, consulting, or overtime to cash in on that next $50K of no federal income tax?
Isn’t that the drive behind EITC?
What good is this?
Childless workers that have incomes below about $14,340 ($19,680 for a married couple) can receive a very small EITC benefit. U.S. tax forms 1040EZ, 1040A, or 1040 can be used to claim EITC without qualifying children.
We should be incentivizing not having kids while you bust your a$$ for a while to buy a condo in the converted SFH next door to the Pumpkin Palace;-)
I misread, I thought you were talking about lower incomes, 40k, etc.
Wayne Valley girls squaring off against Wayne Hills girls:
https://www.thesun.co.uk/news/2458226/shocking-moment-half-naked-hookers-kick-and-wrestle-each-other-in-a-savage-las-vegas-strip-turf-war/
I was, I just used the high income as an illustration, but I’m fine with both. Let’s say every $40K of income you get no federal tax on the next $10K? Even at $40K, let’s say the government gets nothing from $40k to $50K, but imagine all the economic activity that comes from that extra $10K of untaxed income. Now go up to say $90K, another free $10K of untaxed income from $90K to $100K, etc. It’s kind of like the saying that every time a .98 carat perfect diamond is cut, the diamond cutter is fired. The important thing is not that it’s perfect, but rather that it is as close to perfect, but still over 1 carat. Who is going to stop earning at $40K, when there is so much more encumbered earnings to be had by just pushing $10K more? A prevailing (wrong) thought is, “I don’t want to work any more than X, because then I’ll have to pay more taxes.” Turn that upside down. Incentivize making more.
I misread, I thought you were talking about lower incomes, 40k, etc.
unencumbered
F-18 vs F-35
https://www.youtube.com/watch?v=BIPgMw9pSfk
What does “between 7% and 10%” mean? Does he mean rates are 7-10% higher, like 4% moving to 4.4%, or does he mean prospective monthly payments moving up that much?
BTW, why does the RE industry say that you should buy, buy, buy while rates are low and then when rates move up substantially the new call is, “It doesn’t really matter”? I guess that’s a rhetorical question.
Mortgage rates would have to be a lot higher before they really crimp a buyers’ ability to afford a home – Trulia chief economist Ralph McLaughlin estimates between 7% and 10% for many metros – but in an era of ultra-low inventory and fast-moving markets, anything that adds to cost isn’t helpful for buyers.
grim – When you bought your house were you prepared to die there? I think Pumps will definitely die in his home, probably by his own hand.