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Sources: U.S. Census Bureau, National Association of Realtors (NAR) Summary of Existing Home Sales – January 2018, CoreLogic Home Price Insights, Dr. Elliot Eisenberg – Graphs & Laughs LLC, Genworth Financial, Inc
INCOME IMPROVEMENT
In 1967, 8.1% of households earned more than $100,000 inflation adjusted, 53.2% (the middle class) earned between $35,000 and $100,000, and 38.7% earned less than $35,000. Today, 27.7% of the population earns greater than $100,000 (three times the percentage back in 1967), 42.1% earn between $35,000 and $100,000, and 30.2% earn less than $35,000. The middle class is shrinking, but it’s because more American households are earning more than ever.
EXCELLENT EMPLOYMENT
February’s job report was stellar! 313,000 net new jobs, the best increase since 7/16, and upward revisions to December and January totaled 54,000. Moreover, the labor force participation rate rose from 62.7% to 63%, a rate not bettered since 3/14. That led to the labor force rising by 800,000, the largest increase since 1983, which kept monthly wage growth to a noninflationary 0.15%, and the unemployment rate unchanged at 4.1%.
DESTRUCTIVE DEBT
While US household debt is slowly rising, as a percentage of GDP it’s 20 percentage points below its housing bubble peak of 100%. Nations with fast rising and high household debt-to-GDP ratios include Switzerland at 130%, Australia at 120%, Canada and Norway at 100%, New Zealand at 95%, South Korea at 92%, and Sweden at 87%. Luckily, these are all small nations that won’t cause noticeable global damage if they implode.
HEALTHY HOUSING
January housing starts came in at a seasonally-adjusted annualized rate of 1.326 million, their second highest level since 8/07. Single-family starts are also at their second-best level since 2007, 10/07 to be precise. Overall, starts are up 7.3% compared to 1/17 and 18.1% compared to 1/16; good growth! While multifamily starts are up 6.7% Y-o-Y, multifamily activity peaked in 6/15 at 507,000, and has generally been declining since.
PERKY PORTFOLIOS
In 17Q4, US household wealth rose by slightly more than $2 trillion to a record $98.75 trillion, or 6.8 times disposable income, surpassing the previous record of 6.52, in 06Q1. The increase in wealth attributable to the soaring stock market was $1.35 trillion, while wealth from real estate holdings, which includes more than residential houses, grew by $511 billion, with other items accounting for the remaining $220 billion.
PEOPLE PROLIFERATION
With 325 million people, the US is the world’s third largest nation behind China with 1.4 billion and India with 1.3 billion. By 2100, India will be the biggest at 1.5 billion, followed by China at 1 billion, Nigeria at 800 million, and the US at 450 million. Earth’s population is currently 7.5 billion. The planet’s population in 2100; 11 billion. These numbers account for already declining global fertility rates.
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INSTRUCTIONS:
Peel shrimp and chop into bite size pieces. Prepare all vegetables by dicing into similar sized chunks.
In a small bowl combine lime juice, onion, salt and pepper, and a drizzle of olive oil. Let sit for about 5 minutes to allow the juices to mellow out the flavor of the onion.
In a large mixing bowl combine corn, beans, avocado, tomato, jalapeño, shrimp, and cilantro. Add onion mixture and stir to coat. Add more oil or lime juice if needed. Season with salt and pepper to taste.
For best flavor, refrigerate for at least 30 mins. Serve with tortilla chips, over greens, or just by itself!
“Recipe and photos provided by Lauren Regnier of Ditch the Recipe.”
In the ever-increasing roster of awareness days competing for attention, Arbor Day has gotten short shrift. But as environmental awareness continues to grow, so does interest in this nearly 150-year old holiday. The day was founded by J. Sterling Morton, a journalist with a passion for trees and spreading agricultural knowledge. In 1872, the Nebraska State Board of Agriculture accepted his resolution to “set aside one day to plant trees, both forest and fruit” – and Arbor Day was born.
Today, the National Arbor Day Foundation provides millions of trees, and it is estimated that 18 million are planted each year on the holiday (the last Friday of every April). Even those who don’t opt for planting still honor the day with activities ranging from tree identification hikes to ceremonies highlighting community efforts to preserve natural foliage.
Here are just a few ways that trees can bring more value and vitality to your life:
MONEY DOES GROW ON TREES
Trees are one of the most effective – and beautiful – ways to escalate your property value. A mature tree can have an appraised value of between $1,000 and $10,000 according to the Council of Tree and Landscape Appraisers. Ninety-eight percent of Realtors believe that mature trees have a strong or moderate impact on the salability of homes listed for $250,000 or more.*
| *Survey by Arbor National Mortgage and AmericanForests.org |
A LIVING TRIBUTE
Whether you’re remembering the past, or expressing hope for the future, trees are a wonderful way to make a statement that can last for generations to come. Go to a local nursery to pick out your own tree or consider purchasing your commemorative tree through a service that works with the U.S. Forest Service or a state agency. Not only will you receive a gift acknowledgement to keep or share, you will be assisting in the reforestation of our nation’s woodlands.
MADE IN THE SHADE
Want to give your air conditioner a break this summer? The U.S. Department of Agriculture (USDA) Forest Service says, “Trees properly placed around buildings can reduce air conditioning needs by 30% and can save 20-50% in energy used for heating.” Trees and other plants also help cool the environment. Another USDA study states that “the net cooling effect of a young, healthy tree is equivalent to ten room-sized air conditioners operating 20 hours a day.”
UNWIND OUTDOORS
Merely looking at trees is enough to significantly reduce your stress levels, according to research done by the University of Illinois and the University of Hong Kong. Even subjects in an urban setting who were only able to view footage of trees still reported a strong increase in their feelings of calm.
Whether it’s increased property value or decreased tension, taking a moment to honor the natural gifts trees offer is a great way to make every day Arbor Day.
The why behind the buy: Top 5 reasons Millennials chose to buy a home
Pets influenced decision more often than spouses or children
Questions about buying a house?
We are here to help!
WELCOME SPRING, UPGRADE YOUR OUTDOORS
2018 is already in full swing, but when it comes to your yard, the arrival of spring is actually the start of the new year for your yard. As the cold weather subsides, now is the perfect time to focus on helping the outside of your home to shape up and shine for the seasons to come.
Here are some inexpensive, inspired updates that will garner compliments from friends and neighbors in no time.
FRESHEN UP FIRST IMPRESSIONS
“Curb appeal” is the mantra of Realtors everywhere, but it’s not just important when you’re selling your home. Nothing feels better than driving up to your house after a long day and being proud of what you see. Try one or more of these simple, cost-effective fixes: paint your front door, replace faded house numbers and out-of-date exterior light fixtures, plant a tree or install flower boxes.
FOUNTAIN of YOUTH
A water feature doesn’t have to be an elaborate, multi-level waterfall. But even a smaller fountain is a surefire facelift for your outdoor space. Standalone fountains can be installed in a day and cost as little as $200, providing a garden accent that offers both visual beauty and the relaxing audible ambience of trickling water.
STEP IT UP
A stepping stone pathway is great way to connect different parts of your yard or draw visitors into various areas of your garden. All you need are some pavers (at least a few feet across) or pieces of natural flagstone. Place the pieces on the ground about 18 inches apart to match the average person’s stride. Rounded pieces give a softer look, while those with angles offer a modern edge.
COVERING GROUND
Adding mulch or rock groundcover is a quick and easy makeover. Add a rounded border around trees, surround ground-based plants or cover entire areas of your garden or yard. Place a layer of pebbles just around the base of a tree or covering the surface of a planter for an extra touch of design.
STONE AGE
The simple addition of one or two boulders can make a dramatic change to the dynamics of your yard. The good news is, you don’t need Stonehenge-sized rocks. Choose boulders that are one to two feet in diameter. If you’re installing them yourself, be sure to use a dolly (even smaller stones can weigh 75-100 pounds each).
Try one or more of these easy improvements and take your yard from standard to stellar.
GOOD GDP
Inflation-adjusted GDP in 17Q4 grew at a realistic annualized rate of 2.6% after growing at slightly over 3% in 17Q3 and 17Q2. In 2017, GDP grew by 2.3%. While not sizzling growth, it’s pretty good given that this recovery will, in a few months, become the second longest ever. Better yet, due to tax cuts, GDP growth should reach a post-recession high of 2.8% in 2018 and 2.6% in 2019.
INVESTMENT INCREASE
One key component of GDP is corporate investment in equipment and 2018 should be good. The combination of tax cuts, improved business confidence, strengthening global demand, high enough oil prices, a weaker US dollar, very low unemployment, and concomitantly rising worker wages, all point to strong growth. Corporate investment in plants should be close to 7.0% in 2018, up from 4.8% last year and -3.4% in 2016.
BIGGER BORROWING
Outstanding household debt rose $193 billion in 17Q4 to a record $13.15 trillion, 67% of GDP, down from 87% of GDP at the peak in 2009. The delinquent share of total debt is 3.12%, down from 3.19% in 17Q3. Mortgage debt grew by $139 billion and now totals $8.88 trillion but remains 4.4% below the pre-recession high. Auto loan delinquencies are steadily rising; credit card delinquencies are starting to rise.
GLOBAL GROWTH
In 2017, the economies of the 45 largest democracies with market economies grew in unison. That was the first time this has occurred since the years 2004-2007. Looking back in history to 1979 and including the periods already mentioned, synchronized global growth of this sort has happened in just seven years, or 18% of the time. It is anticipated to occur again in 2018.
INFINITESIMAL INVENTORY
On the plus side, existing home sales in 2017 hit 5.51 million, their highest level since 6.478 million in 2006. But, existing sales are up trivially from 5.45 million in 2016, and 5.25 million in 2015. Why? A complete lack of inventory. It’s declined for 31 consecutive months Y-o-Y, and at the current sales pace the stock of homes for sale would be gone in 3.2 months, a record low.
SWISS SECURITY
While Bitcoin and other crypto-currencies are the rage for some, for others it’s Swiss National Bank shares! Shares are up 320% since 1/31/16 to 5,480 francs ($5,866). Sure, they print their own money, but private shareholders have limited voting rights, the dividend is fixed by law at 15 francs, yielding a paltry return of 0.3%, and have no claims on Bank assets of 760 billion francs!
Source: Elliot Eisenberg, PhD., Chief Economist for GraphsandLaughs, LLC, an economic consulting firm serving a variety of clients across the United States. All rights reserved.
Tax time often sheds light on our organization skills – or lack thereof. If you’re struggling to collect and collate multiple documents for your 2017 taxes or just wishing you had a better system, you’re not alone. The good news is, by clearing clutter and streamlining your systems, you can not only relieve your current headaches, but set the stage for a much less taxing time next year.
Here are a few ways to manage and store your tax, financial and other important paperwork:
RIGHT NOW
Create a “transition place” to keep envelopes and other papers from accruing into unsightly piles around your home or getting lost.
• Bills to be paid or filed
• Recent receipts for taxes or other purposes
Once you’ve completed necessary actions, these items are ready for a permanent home.
THIS YEAR
Statements and paid bills should be out of the way – but easily accessible when you need them. You may choose to organize by month or category. Organizing by month is fast, but the only thing the documentation in each section has in common is timing. Organizing by category will allow you to group materials into headers that are easy to recognize and search.
Your current year system will allow you to find statements and other documentation quickly for tax or other purposes.
LONG-TERM
Too often, things we put away for “safe-keeping” become difficult or impossible to find. Gather all of your most important documentation in one place so you always know where to look for it.
• Birth, death, marriage certificates
• Military, citizenship or adoption papers
• Titles to autos, RVs or property
• Social Security cards
• Passports
• Contracts, leases and other legal documents
Consider metal or other fire-resistant options to store items you will need for various purposes over the long-term.
DIGITAL
Scanning and saving documents is smart, as long as you have proper security in place. Verify legitimacy of apps, store thumb drives in a safe place and make sure any sensitive information is adequately pass-coded.
St. Patrick’s Day may be known in our country for boisterous celebration and dyeing both rivers and beer various shades of emerald, but the holiday is actually rich with culture and tradition.
According to Eamonn McGrath, a native Irishman and executive director of the Irish Cultural Center of New England, the 19th century Irish American immigrants celebrated St. Patrick’s Day as a way to honor their ancestry while embracing their new homeland. He likens it to our 4th of July, where people spend time with family, enjoy special food and go to a parade.
McGrath notes that the holiday is “more raucously and widely celebrated” in other countries than it is in Ireland…a paradox that actually makes sense. “All people with Irish heritage long for home,” he says.
Irish or not, here are some ways to add some culture and creativity and flavor the holiday with some genuine Irish spirit:
CELTIC CUISINE
Nothing wrong with a shamrock shake, but why not indulge in some authentic Irish grub instead? Corned beef and cabbage is a traditional dish that Irish American immigrants ate because it was not only tasty, but economical and filling. Whip up a batch in your slow cooker and pair it with some Irish soda bread – a simple, dense, not-too-sweet bread that goes great with the savory stew.
BREAK OUT THE BLARNEY
Unless you happen to live in Shamrock, Texas (where a chunk of the original Blarney Stone is on display for visitors), you probably won’t get a chance to smooch the iconic rock. But tradition says that kissing it grants people the gift of gab – a must for every celebration. Set up a Blarney Stone kissing booth with a sign explaining the story behind it and have each guest plant a peck on the stone as they enter your party. Use a piece of limestone if you want to emulate the original Blarney, or paint a smooth stone green and/or decorate it with shamrocks or other Irish icons.
TRADITIONAL TUNES
Upbeat Irish music is the heart of any St. Paddy’s celebration. Some classic tunes to consider: Skibbereen, Finnegan’s Wake and The Irish Rover. Crank up the Dubliners, Clancy Brothers and the Wolfe Tones. If the fiddles and banjos wear thin, switch over to other Irish artists like Van Morrison, The Pogues and U2.
CULTURAL CONTRIBUTIONS
The Irish helped build canals, railroads, cities and infrastructure in spite of being disenfranchised and subject to prejudice. Professor Christopher Dowd of the University of New Haven encourages people to “reflect on the incredible contributions this immigrant group made to the country.”
Home prices and values have been making news
and homeowners are building equity:
$12,500
The amount the median U.S. home price increased year-over-year as of October 2017
15
The number of consecutive months that home prices have risen by at least 6%
3%
The rate of home value increases considered to be “normal”
Even with skyrocketing prices, housing affordability is up according to the National Association of Realtors’ historic Housing Affordability Index (HAI).
CNN Mortgage Supports Doggie Street Festival
The crew from CNN Mortgage was out supporting one of their favorite causes to help lend our support.
Newsletter 2017
Read our year end newsletter for some valuable insights and helpful tips.
CNN Mortgage At NovemBEER
The CNN Mortgage team was happy to be a part of The Phoenix New Times annual Phoenix Beer Festival.
CNN Mortgage sends supplies to Harvey victims
The owner of CNN Mortgage in Scottsdale mobilized her employees and everyone they know to gather supplies to send to the victims of Hurricane Harvey. Ryan Haarer was there as they loaded up two trailers. (Friday, Sept. 1, 2017)
CNN Mortgage’s Team Continues to Grow.
In personnel and job news, CNN Mortgage is excited to welcome Steve Atwood! Steve most recently served in Retail Production Manager, National Production Manager, and Division Manager roles. He joins CNN Mortgage to further develop the California market. If anyone would like to join Steve on the “California Adventure,” please contact Dorinda Deimund (480.281.8305).
CNN Mortgage’s Tim George Featured In Top Agent Magazine
“When others say no, he says yes. He can think outside of the box.” That’s the kind of feedback Loan Originator Timothy George receives from clients on a regular basis. He attributes it to a number of factors, all of which are clearly lined out as the Core Values of The George Team at CNN Mortgage.