Tom Cofer

New Residential Construction- April 2012

Tom Cofer — Wed, 16 May 2012 23:14:00 GMT

Building permits in April 2012 were at a seasonally adjusted annual rate of 715,000, down 7.0 percent from the revised March rate but up 23.7 percent from April 2011. Housing starts in April 2012 were at a seasonally adjusted annual rate of 717,000, up 2.6 percent from March’s revised estimate and up 29.9 percent from April 2011.

Information supplied by the Economic and Statistical Adm.

International Trade-March 2012

Tom Cofer — Tue, 15 May 2012 00:21:00 GMT

The March 2012 international trade deficit rose 14.1 percent from the prior month, to $51.8 billion. Exports increased 2.9 percent, to $186.8 billion, and imports increased 5.2 percent, to $238.6 billion.

Data supplied by the Economic and Statistical Adm.

Gross Domestic Product, 1st Qtr. 2012

Tom Cofer — Tue, 01 May 2012 18:00:00 GMT

Real gross domestic product (GDP) grew at an annual rate of 2.2 percent in the first quarter of 2012, according to today’s advance estimate. This follows a growth rate of 3.0 percent in the fourth quarter of 2011.

Information supplied by the Economic and Statistical Adm.

Personal Income, March 2012

Tom Cofer — Tue, 01 May 2012 17:57:00 GMT

Personal income in March 2012 rose 0.4 percent. Nominal personal consumption expenditures (PCE) increased 0.3 percent and real PCE rose 0.1 percent. Nominal disposable personal income (DPI) increased 0.4 percent and real DPI rose 0.2 percent. The personal saving rate as a percentage of DPI was 3.8 percent in March.

Information supplied by the Economics and Statistical Adm.

Northwest Indiana Real Estate Market

Tom Cofer — Fri, 20 Apr 2012 00:53:00 GMT

Existing single-family home sales in Northwest Indiana increased 9.9 percent in March, marking the ninth month in a row sales have notched a year-over-year increase, according to the Greater Northwest Indiana Association of Realtors.

Home prices also realized their largest increase of the year, with the median selling price of a home rising 7.3 percent in March as compared to March of 2011, according to association sales figures.

That new-found stability in home prices has been a key factor in luring buyers back to the market, according to Matt Evans, a Realtor with RE/MAX Affiliates in Valparaiso.

"Everyone is sensing the value in real estate is back," Evans said. "They don't want to buy something just to see it decrease in price."

Record low interest rates, continued improvement in the economy and the unseasonably warm spring all brought out buyers in March, Evans said.

Nationally, sales of existing single family homes in March increased 5.9 percent above their pace one year ago, according to the National Association of Realtors. However, March sales declined 2.5 percent from those in February.

"Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year, said National Association of Realtors Chief Economist Lawrence Yun. "With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year."

Through the first three months of the year, existing single-family home sales in Northwest Indiana increased 9.7 percent, putting the region on track for its first significant year-to-year uptick in home sales since 2006, according to Greater Northwest Indiana Association of Realtors figures.

The Greater Northwest Indiana Association of Realtors represents Realtors in Lake, Porter, LaPorte, Jasper and Newton counties.

The interest rate on a fixed-rate, 30-year conventional home loan ranged from a low of 3.88 percent in March to a high of 4.08 percent, according to Freddie Mac's weekly mortgage survey. The U.S. unemployment rate dropped to 8.2 percent from 8.3 percent the month before, according to the U.S. Bureau of Labor Statistics. One year before, the unemployment rate stood at 8.9 percent.

In Lake County, 343 single-family homes were sold in March, a 12.5 percent increase compared to the 305 homes sold in March 2011. The median selling price of a home in Lake County in March was $115,000, a 17.5 percent boost above the March 2011 median selling price of $97,900.

In Porter County, 124 single-family homes were sold in March, a 7.8 percent increase compared to the 115 homes sold in March 2011. The median selling price of a home in the county in March was $150,000, which was even with the median sales price of a home there in March 2011.

Information supplied by The Times of Northwest Indiana

March 2012 Building Permits

Tom Cofer — Fri, 20 Apr 2012 00:49:00 GMT

Building permits in March 2012 were at a seasonally adjusted annual rate of 747,000, up 4.5 percent from the revised February rate and up 30.1 percent from March 2011. Housing starts in March 2012 were at a seasonally adjusted annual rate of 654,000, down 5.8 percent from February’s revised estimated but up 10.3 percent from March 2011.

Data supplied by the Economics and Statistical Adm.

International Trade- February 2012

Tom Cofer — Fri, 13 Apr 2012 18:00:00 GMT

The February 2012 international trade deficit fell 12.4 percent from the prior month, to $46.0 billion. Exports increased 0.1 percent, to $181.2 billion, and imports decreased 2.7 percent, to $227.2 billion.

Data supplied by the Economic and Statistical Adm.

Gross National Product- 4th Qtr. 2011

Tom Cofer — Fri, 30 Mar 2012 14:59:00 GMT

Real gross domestic product (GDP) grew at an annual rate of 3.0 percent in the fourth quarter of 2011, according to today’s third estimate. This follows a growth rate of 1.8 percent in the third quarter of 2011. Real GDP increased 1.7 percent from 2010 to 2011 overall.

Data supplied by the Economic and Statistical Adm.

Personal Income- February 2012

Tom Cofer — Fri, 30 Mar 2012 14:52:00 GMT

Personal income in February 2012 rose 0.2 percent. Nominal personal consumption expenditures (PCE) increased 0.8 percent and real PCE rose 0.5 percent. Nominal disposable personal income (DPI) increased 0.2 percent while real DPI declined 0.1 percent. The personal saving rate as a percentage of DPI was 3.7 percent in February.

Data supplied by the Economic and Statistical Adm.

Northwest Indiana Home Sales

Tom Cofer — Thu, 22 Mar 2012 21:08:00 GMT

Home sales in Northwest Indiana rose 11.5 percent in February as compared to one year ago, marking eight straight months of home sales increases and furthering confidence the worst of the housing crisis is over.

Gains in Lake and Porter counties were even stronger than the overall increase, with sales of existing single-family homes up 12.4 percent in Lake and a whopping 30.5 percent in Porter as compared to one year ago, according to sales figures from the Northwest Indiana Association of Realtors.

"We are hearing regular feedback from local Realtors stating that the market is picking up, activity is high and they are expecting a better spring than in recent years," said Peter Novak Jr., Greater Northwest Indiana Association of Realtors CEO.

The association tracks sales of member Realtors in Lake, Porter LaPorte, Jasper and Newton counties.

Nationally, single-family home sales in the United States increased 9.4 percent in February as compared to February 2011, driven by record low interest rates and an improving economy, according to the National Association of Realtors.

While acknowledging the housing recovery has been bumpy, National Association of Realtors Chief Economist Lawrence Yun said pent up demand and the improving economy could lead to a burst of home buying as the year goes on.

"The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market," Yun said.

Interest rates continue to hit all-time lows, with the national average commitment rate for a 30-year, conventional, fixed-rate mortgage a record low 3.89 percent in February, according to Freddie Mac data.

The increase in sales in the Midwest outpaced the national trend, with 13.3 percent more existing homes sold in February than in February of 2011.

Home sales prices in Northwest Indiana and the Midwest began to gain some stability in February, another welcome sign the market is strengthening.

In the five counties covered by the Northwest Indiana Association of Realtors, the median selling price of a single family home was $112,000 in February, a 1.9 percent increase as compared to one year ago.

That picture showed some unevenness from county to county, with Lake county's median selling price dropping 4.5 percent from one year ago while Porter county's shot up 18.7 percent, mirroring its strong gain in overall home sales.

The median home sale price in the Midwest was $120,500, down just 0.5 percent from one year ago, according to the National Association of Realtors.

NWTimes

New Residential Sales-February 2012

Tom Cofer — Tue, 20 Mar 2012 15:07:00 GMT

Building permits in February 2012 were at a seasonally adjusted annual rate of 717,000, up 5.1 percent from the revised January rate and up 34.3 percent from February 2011. Housing starts in February 2012 were at a seasonally adjusted annual rate of 698,000, down 1.1 percent from January’s revised estimate but up 34.7 percent from February 2011.

Data supplied by the Economic and Statistical Adm.

NIPSCo May Build a 500 Mw Unit

Tom Cofer — Thu, 15 Mar 2012 13:48:00 GMT

NIPSCO CEO sees $5 billion expansion in decade ahead

Michelle L. Quinn, Post-Tribune Correspondent

GARY — Big things are happening at NIPSCO, as the utility intends to keep on track with its opportunities and economic growth while making sure customers are better served.

Celebrating its 100 years serving Northern Indiana this year, the company expects to spend $5 billion over the next decade, with a good majority — 60 percent — of it on generation and infrastructure improvements, Executive Vice President and Group CEO for Natural Gas Transmission and Storage Jimmy Staton told the Gary Chamber of Commerce at its monthly luncheon. Staton is also responsible for NiSource’s Indiana gas and electric utilities.

The utility company foresees a new, 500-megawatt natural gas plant built somewhere near the R.M. Shahfer Generating Station or anywhere there’s available land, the cost of which could run in the $500 million to $750 million range.

“As the transmission grid continues to evolve, we don’t want to back up power. It would be like a backup on the highway,” Staton said. “We’ll find a place for it.”

Staton touted that NIPSCO’s rates aren’t the highest in the state, with Indiana’s rates being some of the lowest in the nation overall. Its natural gas rates are lower as well.

A $600 million project at the Shahfer Station in Wheatfield has resulted in at least 1,000 jobs, and the company itself hires 200 new people per year, primarily from Northwest Indiana. Perhaps the icing on the cake, however, is that through NIPSCO’s efforts, Lake County has once again become a so-called attainment zone, which means the air quality is clean enough that the county can pursue manufacturing companies.

That, of course, would bring more jobs to the area.

“Working with the (Indiana Economic Development Corp.), we feel we’ve gotten a fair amount of great opportunities,” Staton said, highlighting the Kirk Yard deal in Gary as one of them.

State Sen. Earline Rogers, D-Gary, asked Staton whether he felt the Indiana Utility Regulatory Commission treats the utility fairly, to which he said he’s pleased to see a strong chairperson and diverse board where members can disagree with one another. He called the commission’s actions as “fair a level of regulation as the company’s seen.”

Staton also said the company is trying to branch out into social media and new technologies such as a mobile app that will allow customers to pay their bills from their phones. And, new programs to help people use energy more efficiently or even create their own energy and sell it back to NIPSCO are important, even if it means less money for NIPSCO.

“We have an obligation to make sure people’s bills are managed,” Staton said.

International Trade

Tom Cofer — Tue, 13 Mar 2012 12:52:00 GMT

The January 2012 international trade deficit rose 4.3 percent from the prior month, to $52.6 billion. Exports increased 1.4 percent to $180.8 billion, and imports increased 2.1 percent to $233.4 billion.

Information supplied by the Economics and Statistical Adm.

LaPorte County Property Taxes

Tom Cofer — Mon, 12 Mar 2012 11:52:00 GMT

Lawmakers agree to penalize LaPorte County for late property tax bills

Dan Carden, Times of Northwest Indiana

INDIANAPOLIS | State lawmakers told LaPorte County Friday to get current on its long-delayed property tax billings or pay the price.

The Republican-controlled General Assembly approved Senate Bill 19 requiring the county pay $1 million a year to local governments and schools if back tax bills are still uncollected by Jan. 31, 2013.

LaPorte County cities and schools have paid millions in interest on tax anticipation loans while waiting for the county to collect and hand over their tax dollars. A contested property reassessment has delayed some billings since 2008.

"This will expedite that process to make sure it happens, we can stop throwing taxpayer dollars out the window paying interest and do what every other county in the state is doing," said state Rep. Tom Dermody, R-LaPorte.

The House approved the measure, 90-6. The Senate vote was 36-14.

The legislation still must be signed by Republican Gov. Mitch Daniels to become law.

Housing Update

Tom Cofer — Thu, 08 Mar 2012 13:31:00 GMT

Housing: lots of noise but limited impact
President Obama has put forth programs aimed at allowing homeowners to
modify or refinance their mortgages to take advantage of record-low mortgage
rates and realign mortgage balances with depressed home values. These
programs have had modest success at best, due to their complexity, divergent
interests among various parties and an inability to address negative equity.
In our view, some solutions include a large-scale deed-for-lease program,
expanding credit access and tax incentives for investor-oriented homebuyers
and a government/private sector investment and financing plan. Given our
base case for a post-election Democratic White House and a Republican
Congress, implementation of any of these programs will require major political cooperation

Information taken from UBS report