January 2013 U.S. Economic Fundamentals

[Ally]

Keystone XL is coming back




PRESIDENT OBAMA rejected the Keystone XL oil pipeline this time last year, a result that Canada had every reason to be dismayed by, as did Americans whom the project would have employed. The issue is coming back, and the president has even less reason to nix the project than he did last time.




After years of federal review, there was little question last year that construction of the pipeline, which would transport heavy, oil-like bitumen from Alberta to the Gulf of Mexico coast, should proceed. Thousands of miles of pipeline already crisscross this country. An environmental analysis had concluded that the risks of adding this new stretch were low. An economic review had found that Canada would get its bitumen to the world market ` if not via pipeline to the gulf, then very likely by ship to China. Supply would make it to demand, one way or another.





Read the full article here.

 

[Ally]

A look at Case-Shiller by Metro area




Home prices continued their winning streak of year-over-year gains, according to the S&P/Case-Shiller indexes.




The composite 20-city home price index, a key gauge of U.S. home prices, was up 5.5% in November from a year earlier. Prices were 0.1% lower than the prior month, but that was mainly due to a slower winter selling season. Adjusted for seasonal variations, prices were 0.6% higher month-over-month. Nineteen of the 20 cities posted annual increases in November. Just New York notched an annual decline. Even with the slower winter season, 10 cities posted monthly increases. On an adjusted basis, only New York reported a monthly decline.





Read the full article here.

 

[Ally]

Homeownership rate slips, rental vacancies up




WASHINGTON (Reuters) - The share of privately owned homes edged down in the fourth quarter and rental vacancies rose, government data showed on Tuesday, underscoring the challenges still confronting the housing market recovery.




The homeownership rate slipped to 65.4 percent from 65.5 percent in the third quarter, the Commerce Department said.




While the housing market recovery appears to be gaining traction, high unemployment and stringent lending standards are keeping many from owning a home.





Read the full article here.

 

[Ally]

U.S. economy suffers first decline since the Great Recession




WASHINGTON ` The U.S. economy unexpectedly contracted in the fourth quarter, suffering its first decline since the 2007-09 recession as businesses scaled back on restocking and government spending plunged.




Gross domestic product fell at a 0.1% annual rate after growing at a 3.1% clip in the third quarter, the Commerce Department said on Wednesday.



Read the full article here.