Real Estate Updates

Real Estate Update

The economy has been severely wounded and it didn’t happen overnight. Looking forward, the prognosis is encouraging, but it will be a slow healing process.

Gazing into their crystal balls, economic experts see a better housing and mortgage market coming in 2011.

According to an article in the Chicago Journal–Economists clearly see low home-loan interest rates, rebounding home prices and more job creation leading to a gradual recovery in the second half of the year, according to a new year-end economic outlook by Freddie Mac.

“As in the past, key macroeconomic drivers of the economy — such as income growth, unemployment rate, and inflation — will affect the performance of the housing and mortgage markets in 2011,” said Frank Nothaft, vice president and chief economist of Freddie Mac.

“With fiscal policy supporting aggregate demand for goods and services and an accommodative monetary policy providing low interest rates and ample liquidity to capital markets, the economic recovery should accelerate gradually over the year, with the second half of 2011 exhibiting more growth and job creation than the early part of the year,” Nothaft said. Read more…

According to an Article by NICK TIMIRAOS And JUSTIN LAHART  in the Wall Street Journal online,

Home Prices Slide Despite Discovery

Home prices fell to new lows in 11 cities in December, the latest sign that the weak housing sector remains a soft spot in the U.S. economy.

Across 20 major metropolitan areas, home prices fell 1% in December from November, according to the S&P/Case-Shiller home-price index released Tuesday. The index has declined for five consecutive months, all but erasing the gains in home prices since the recession ended in June 2009.

The feeble housing report comes as other indicators suggest that the economy is gaining ground. Another report Tuesday showed Americans’ attitudes on the economy growing more upbeat.  Click here to see ‘Housing Barometer’ from December 2010.

Relocation

2011 Mileage and FICA Cutoff Rates

The IRS just announced mileage rates and FICA earnings cutoff and withholding rates for 2011

Business Mileage
Business mileage rate will increase from 50 cents/mile in 2010 to 51 cents/mile in 2011.

Final Move Deductible
Final move deductible rate will increase from 16.5 cents/mile in 2010 to 19 cents/mile in 2011.

Employee FICA Contribution Rate Reduced and Earnings Cutoff Announced
The FICA earnings cutoff for 2011 will be $106,800, which is the same earnings cutoff as this year.

President Obama signed into law a reduction of the worker’s contribution FICA rate for 2011. The FICA rate will be reduced from 6.2% to 4.2% for one year. The employer’s contribution rate will not change for 2011.

Other Important News and Notes…..
1.    The marginal tax rates will remain the same through 2012
2.   Sales tax deduction option will extend through 2011
3.   No phase-out of deductions and exemptions for high-income earnings will extend through 2012

Source: Orion Mobility

Relocation

2010 U.S. Transfer Volume & Cost Survey

MOBILITY Magazine, September 2010 

Worldwide ERC® is engaged actively in the study and benchmarking of employee mobility data, and the Worldwide ERC® Transfer Volume & Cost Survey is an annual enterprise that offers analysis of data pertaining to employees transferred domestically within the United States. Lamech offers analysis of the 2010 survey results illustrating mobility activity within the United States.

By Mariam Lamech 

Read entire article  >>