Going deeper into the posts

If you enjoy the posts on this page, you might enjoy reading my current newsletter which has many interesting articles used to develop these posts. You can also learn about the Freedom Boat Club, vacation rentals, Steven Spielberg's pad that is for sale, tips on buying a home, and workplace tips. Here's the link:
http://amerivest.rezora.com/public/1942426

Consumer confidence takes a dip

The University of Florida's Bureau of Economic and Business Research reports that consumer confidence dropped -7 points to 71 over concerns with the American economy. The prospect of a government shutdown, credit default, and uneasiness with the floundering economy contributed to the drop in consumer confidence. Nationally, the drop was -9 points going from 80.2 down to 71.2.
Senior citizens worrying about not getting Social Security checks in the government shutdown dropped to 65. Consumer confidence is closely monitored since consumer spending makes up about 70% of economic activity.

Boston remembers 1918 World Series

The Red Sox are back in Boston for game 6 of the World Series leading 3 - 2 in the series. The last time the Boston Red Sox won a World Series in Boston was in 1918...and Babe Ruth was on the team. Fan excitement is reflected in ticket prices. As of 10:00 AM, Tuesday morning, the average price for a ticket to Wednesday night's game had ballooned to $1860. Bleacher seats that were selling for $300 a week ago are now bringing $1100. Stub Hub reports that one sports fan paid $24,000 for two of the best seats for the game.

Flood insurance relief may be on the way

A bi-partisan group of legislators has begun drafting legislation that could stall the implementation of the premium increases called for in the Biggert-Waters Flood Insurance Reform Act of 2012. This delay would also give the Federal Emergency Management Agency more time to review the premiums to be sure they accurately reflect the values needed to make the program self funding. It has been predicted that homebuyers would be hit the hardest under the current structure seeing premiums rise from $6000-$20,000 a year in many cases. Not usually mentioned in the controversy is the fact that FEMA would have to re-draw its flood plain maps, and reimburse homeowners who have paid higher premiums due to incorrect maps in the past. the new rates kicked in on October 1st of this year.

The austere 747 heading into antiquity?

Who will not remember the fist time they saw the airliner 747, the Queen of the skies? This plane is more than 6 stories tall, seats between 380 and 560 passengers, is longer than the Wright Brothers first flight, and has a 6000 mile range. Boeing started building 747's in the late '60s, and more than 1418 have taken to the skies. Technology has caught up and passed the 747. Now, 2 engine planes can navigate the long ranges previously reserved for the 747, and at lower fuel and replacement cost. The Airbus A330 and the Boeing 777 now dominate the long haul routes. Currently, there are orders for just 31 of the current 747-8's version as contrasted with 979 orders for the 787 Dreamliner. The 747 costs $350 million, while the smaller 2 engine planes sell for about $320 million each. Boeing reports that only 18 of the 747's will be built in the next 2 years.

Consumer confidence down 3rd straight month

The University of Michigan reported that its index of consumer confidence dropped down to 73.2 from 77.5 in September. In July, the index hit a 6 year high of 85.1. The study pointed out that many American's feel the government has become the primary obstacle to economic growth. The recent confusion over the debt limit and shutdown has really created a negative attitude in shoppers that may be reflected in poorer holiday sales this year. The study reported that American's expectations for future growth fell to it lowest point since late 2011.

Private flood insurance may ease the pain

Insurance agent Evan Hecht, from The Flood Insurance Agency of Gainesville, Fl. may have some help on the way for people strapped by the new NFIP rate structure. Mr. Hecht stated he started offering policies statewide on Wednesday, and is looking to expand to other states. His agency can offer policies along the Gulf Coast communities in the neighborhood of $2200 vs the threat of costs exceeding $20,000, as predicted possibility in the new NFIP rates. There is some risk in this type of coverage known as surplus lines coverage. If the surplus lines company goes bankrupt, claims do not get paid. Be sure to evaluate your insurance to be sure you have a comfort level you will be compensated if you file a claim.

Pinellas County home sales torrid in September

Single family home and condo sales increased more than +20% in September 2013 vs. 2012. The median price of homes increased + 20.6% reaching $160,000. Cash sales for single family homes were up +7.3% and town homes and condos saw a +17.9% increase in cash sales. A sign of the healthier real estate market was reflected in short sales declining by -28.9% in single family homes and -49.4% in town homes and condos. Low inventories and fewer distressed homes contribute to the price strengthening in home prices.

Flood insurance questions continue

Attending a seminar of real estate industry professionals on Tuesday, 10/22 showed just how much is still unknown about the implementing  the new NFIP rate guidelines. Things like the exact height above the BFE ( base flood elevation ), types of construction, past flooding history, proximity to the water source, and the amount of development between the structure and the water body, all come into play. Small adjustments in any of these items could result in thousands of dollars in either savings or costs. It was noted that 81% of the homeowners in the flood zone areas will not be affected drastically by this new law. The remaining 19% have to be brought into compliance over time. In Pinellas County, there are 45,000 homes to be addressed and 15,000 in Hillsborough. The starting point in the discussion is to establish your home's base relationship to the BFE with an elevation certificate. The cost of an elevation certificate can run from $75 to $250 depending on the company you choose. The better the quality of the elevation certificate, the greater the chance for savings under the new program.

Have you visited an ecoATM lately?

In Sacramento, Calif., there is a kiosk with an ecoATM. Drop in your old cell phone and the machine analyzes its condition and offers you cash back for the phone...on the spot. It is estimated there are  over  800 million  abandoned cell phones in the U.S. This is one approach to start dealing with the problem. Retailers are beginning to offer incentives for old electronic devices, and others are recycling them to be sold overseas in places like Africa, India, and Southeast Asia where there is high demand for used cheaper phones.CellphonesForSoldiers.com recycles used phones and sells them so they can offer our troops overseas free international phone-calling cards. Time to see how many old phones you have and consider recycling them.

Is the DOW headed for a fall soon?

Even as stock prices edged upwards into new high water territory during the debt ceiling debate, there are those who question their fundamentals and their staying power at these high prices. Yale University finance professor Robert Shiller ( Noble Peace Prize winner last week ), and author of the 2000 best seller, Irrational Exuberance, sees stocks getting too expensive relative to their earnings. According to his clinically adjusted price/earnings ratio- he sees stocks are again dangerously overpriced and poised for a fall in the future.

Unemployment claims keep falling

About 3.9 million people received unemployment benefits in the week ended 9/28. This was about 83,000 fewer than the previous week. A year ago 5 million people were receiving benefits. It is hard to sort out the numbers these past few weeks as 70,000 furloughed federal workers and 15,000 private sector employees made application for benefits. Once things get back to normal, the Labor Department expects to see continuing improvement as the economy expands.

Millennial generation sees a home purchase as a good thing

The Pinellas Realtors Organization reports that those folks who make up the Millennial generation ( 32 years old or younger ) have more confidence about a home purchase than any other age grouping. Over 85% of the Millennial generation see a home purchase as a good financial investment. The study also pointed out that 79% of the Millennial generation are first time homebuyers and 65% of them had previously rented a home. This age group is the second largest group of recent homebuyers accounting for 28% of purchases. The Generation X group ( those born between 1965 and 1979 ) accounted for 31% of recent home purchases.

$737.95 vs. $752.24 in 2013

This Christmas, it is estimated shoppers will spend -2% less than last year. That would result with the average shopper spending just $737.95 this year as opposed to $752.24 in 2012. The National Retail Federation has predicted people will pull back on spending money on themselves so they can purchase gifts for others. A survey conducted between October 10 - 13th by the International Council of Shopping Centers and Goldman Sachs found that over 40% of the holiday shoppers have reined in their spending. This survey found that 47% of those making less than $35,000 have cut back the most,  and 32% of those making over $100,000 have also cut back. Fears of the unstable economy, the debacle over the debt ceiling by Congress, and the concern that interest rates may rise have contributed to this poor prediction for holiday spending.

American's adjusting retirement plans

NORC Center for Public Affairs Research discovered in a recent poll that American's are adjusting their retirement plans to include retiring later in life, and continuing to work part time. The poll reported 82% of workers 50 and older say they will most likely remain working in some capacity. Over 47% suggested they will retire later now than originally planned. Those most likely to adjust their retirement plans included males, workers making less than $50,000 annually, parents of young children, racial minorities, and those without health insurance. Associated Press reported these findings.

Foreclosures dip in Florida

Even though Florida's foreclosure rate has dropped -7% in the last quarter, we still lead the nation as their activity has also dropped. There were about 70,000 housing units that had foreclosure activity in the July-September period. Eight of the 10 highest foreclosure rates were in Florida cities. The average foreclosure in Florida takes 929 days. Banks filed about 1,000 Tampa Bay foreclosures in the period, about half their average since 2011.

Florida considers flood self insurance

Over the past 30 years, Floridians have paid $16 Billion in flood insurance premiums and filed less than $ 4 billion in claims. Florida has paid 3.6 times more than it has collected. A nice profit for the NFIP program. Florida policy holders ( 2 million ) make up about one third of all the policies which amount to 5.6 million. It was Katrina and Sandy that dealt such a devastating blow to the program. Florida has been subsidizing the rest of the nation. There are those advocating Florida pull out of the National Flood Insurance Program and self insure with much more modest rates consistent with the actuarial history of Florida policy holder. The Florida Legislature and Governor Scott may consider this option to bring relief to Florida home owners.

Rental housing shortage in Tampa

Vacancy rates in 2012 for all rentals fell from 9.6%  in 2011 to 5.6%. Single family home inventories shrunk from 4.3% to 1.4% in 2012 . Stronger job market, investor activity, a population increase of +2.5% since 2010, and increased rentals by snowbirds have contributed to this situation. Investors are renovating homes as fast as possible to meet the demand.

Credit card debt keeps shrinking

August saw American's cut back their credit card debt for the third month in a row. However, consumers did increase their borrowing by +13.6 billion bringing it to $3.04 trillion seasonally adjusted. Credit card debt dropped about -$883 million to roughly $850 billion. Consumers remain cautious with respect to the economic recovery.

Wearable technology coming quickly

Google glasses were just the start of the wearable technology explosion getting ready to happen...even this year. Americans have used wearable technology for generations in the form of pocket watches, wrist watches, compasses, hearing aids, etc. Last year, wearable technology was estimated at $9 billion and projected to reach $30 billion by 2018. Georgia Tech Professor Thad Starner made this observation about wearable technology..." We're talking about paradigm changing devices, capabilities people haven't thought of before. Unlike computers and tablets, wearables are designed to operate in the background secondary to the wearer's attention."

Millions hit Obamacare websites in first days

In the first few days on line, over 8.5 million people hit the online websites looking for information on Obamacare. The federal call center handled 406,000 calls. Kentucky which expected a low level of web activity ( a few hundred hits ) has actually enrolled 4739 individuals and families by Friday. It has been a similar story across the country.

Call to delay flood insurance changes

Members of a Florida delegation ( both parties ) have proposed delaying the proposed NFIP reforms for one year. There is no question the 45 year old National Flood Insurance Program needs reform so as to move away from the $20 billion subsidy it has been getting. In Hillsborough and Pinellas counties, many of the homes hit the worst are valued less than $130,000 and not even on the water. In Hillsborough, 80% of the affected homes are not on the water. As a Tampa Tribune editorial pointed on August 6th, " This is not about helping the rich, it is about helping thousands of middle class families who played by the rules, but now find themselves with insurance bills they can't afford." Florida legislators are looking for ways to bring relief to affected home owners so they can afford to stay in their homes.

Job growth disappointing

Only 166,000 of the 180,000 expected jobs were added in the economy during September. The revised figure for August dropped from 176,000 down to 159,000 when audited. September was slightly better than August. This is yet again a mixed signal on what is happening in this economy.

Federal shutdown could hamper Christmas retail spending

With so many workers furloughed in the shutdown, retailers are worried they will have the disposable income to spend on Christmas. It was projected spending in the November - December period would rise +3.9% to $602.1 billion. Last year sales increased +3.5% in that period. The importance of this sales period is critical to business as retailers realize about 40% of their annual revenue through Christmas shoppers. Online sales are expected to grow +13-15% in this period.

Utilitiy companies claim solar friendly plans to generous

For the 283,000 solar energy customers getting breaks for alternative energy usage from U.S., utility companies are now being told they need to pay higher fees to support the infrastructure of the industry. In most states, solar energy users can sell back "extra" energy produced into the electric grid. This will lead to less building of new power plants in the future, a key ingredient in utility company profitability. Utility companies want to raise fees, roll back alternative energy friendly rate plans, and equalize the costs of maintaining and growing electric power to all customers. Right now, regular users are subsidizing the solar energy users.

Shutdwon fears drop DOW -128.57 points

Monday, the DOW Jones Industrial average retreated -128.57 points on fears of repercussions associated with a shutdown of the government. Both Standard and Poor's and NASDAQ retreated as well.