Thursday, August 23, 2012

Better Housing Market Improves Americans' Finances


Americans are feeling the best they have about their financial situation in nearly four years, according to the latest CredAbility Consumer Distress Index, a nonprofit credit counseling service. 
The improvements in the housing market is lessening the stress on Americans’ wallets, according to the report, which analyzed the financial condition of U.S. households in the second quarter, taking into account factors like employment, housing, credit, family budgets, and net worth. 
Americans’ improving finances lately, according to the report, is mostly being driven by the number of home owners who have been able to cut their housing costs by refinancing into ultra-low mortgage rates and a big decrease in the number of home owners who are late on their mortgage payments.
“Slowly but surely, consumers have worked to repair their finances during the past four years by paying down debt and better managing their credit,” says Mark Cole, executive vice president of CredAbility. “They are more in control of their household budgets, increasing their savings even as gasoline prices have risen and the drought has started to affect food prices. While millions of people continue to battle unemployment, the majority of households with stable jobs and housing has made wise financial choices and are moving in the right direction.”
The study found that consumers’ finances are healthiest in Boston, Washington, D.C., Dallas, and Houston. Meanwhile, the cities with the most Americans financially distressed were in Orlando; Tampa-St. Petersburg, Fla.; Riverside-San Bernardino, Calif.; Las Vegas; and Miami-Fort Lauderdale, Fla. 
Source: CredAbility

Wednesday, August 22, 2012

Utah #1 on 2012 Top 10 Pro Business Rankings


Pollina Corporate Top 10 Pro-Business States

The International Monetary Fund states that the U.S. lacks a “credible strategy” to stabilize its mounting debt. The lingering recession, deficit spending, family debt, disastrous trade policies, offshoring of jobs, high taxes, taxloopholes, choking regulations, a decline in research and development, overzealous unions, out-of-control medical costs, and an outdated educational system are convincing evidence of the failure of the American economic model.

Most of these problems stem from political leadership, both Democratic and Republican, that has been unable to perceive and adjust to the rigors of a global economy and the competition it has created.  This same leadership is so focused on each election and the funding necessary to win that it has lost sight of its responsibility to the American people.

The Pollina Corporate Top 10 Pro-Business States study, now in its ninth year, draws attention to those states with political leaders who have a strategic plan that works as well as states that need help.  The study is a joint endeavor of the American Economic Development Institute (www.aedi.us) and Pollina Corporate Real Estate, Inc.

The study examines 32 factors relative to state efforts to be pro-business and has become recognized as the “Gold Standard” for evaluating states.  It is the most comprehensive and impartial examination (with no advertising) of states available.

The Top 10 states listed below exhibited leadership that truly understands the importance of producing the best business environment, and thus the best opportunities for job growth and economic prosperity.  All 10 top-ranked states should be held up as models for the other 40 states and the federal government.
2012 Top 10 Pro Business Rankings
1Utah6Nebraska
2Virginia7South Dakota
3Wyoming8Kansas
4North Dakota9Missouri
5Indiana10Oklahoma
In the U.S. today, if you combine state, local, and federal taxes, the tax burden on companies is among the highest the world.  Add labor costs, and we are one of the highest cost nations to do business in.  American companies, if they are to survive in a global economy, must be located in the most pro-business locations possible. 


The Pollina Corporate Top 10 Pro-Business States study is based on 32 factors that our clients indicate are most important and more than 30 years of experience as site selectors.  We weigh all factors based on the requirements of our corporate clients and our three decades of site selection experience.

Our ranking takes a comprehensive two-stage approach.  Stage I, Labor, Taxes and Other Factors, is based on 19 factors, including taxes, human resources, right-to-work legislation, energy costs, infrastructure spending, worker compensation legislation, and jobs lost or gained. Stage II, Incentives and State Economic Development AgencyFactors evaluation, examined 13 additional state government-controlled factors, including state financial incentive programs and state economic development department evaluations.

Each year, Pollina Corporate designates the states that we consider to have made the most significant three years improvements (+10 position shift) in terms of creating a pro-business environment.  We also designate those states whose business climates are not keeping pace (-10 position shift) with their peers. These deserve extra attention  so that their leadership can make appropriate corrections:

GREATEST THREE-YEAR INCREASE & DROP IN RANK
MOST IMPROVED
GREATEST DROP
Indiana  +18
Connecticut  -21
Arkansas  +17
Nevada  -13
Kentucky  +16
Illinois  -12
Alaska  +11

Contributer: Brent Pollina

Wednesday, August 15, 2012

Forget Foreclosures, How About 'Normal' Home Sales?


While much of the focus the last few years has been on foreclosures and short sales, some experts say it’s caused some to overlook what’s been happening lately with nondistressed sales. 
Some housing surveys have recently shown that when distressed sales are excluded from the picture, the market share of nondistressed homes is at its highest level since August 2008. From January to June, nondistressed sales were up 15 percent year-over-year, according to CoreLogic. 
Shrinking inventories of homes for sale and strengthening housing demand from home buyers has helped boost home prices. Home prices have increased 2 percent in June over May, when excluding distressed sales, according to the National Association of REALTORS®. Also, surveys have recently shown that nondistressed listings are staying on the market a lower number of weeks -- averaging 11.7 weeks in June compared to 12.7 weeks in May, according to HousingPulse.
Source: “‘Normal’ Home Sales Soar Despite Obstacles,” RISMedia (Aug. 13, 2012)
Here is how Utah's Re-Sale Homes have preformed...