Wednesday, October 28, 2009
What a difference a day makes
Well, new home sales are down by 3.6% to a seasonally adjusted annual rate of 402,000 as reported by the Associated Press today. Why is that a bummer? Economists expected growth to the tune of 440,000. Whoops! Guess all is not well with our economy is it? Oh well, don't worry about that, let's focus all our efforts on healthcare while the country flounders. But hey, oil prices dropped because our economy sucks and due to a strengthening dollar (stong dollar usually equates to weaker oil prices as oil can be used as a hedge against a falling dollar). The world seems to see the global economy strengthening, I hope they are correct (and that sales rise in the last quarter of the year!). Fingers crossed!
Tuesday, October 27, 2009
Welcome back to 2003!
Good news-home prices are up again per Case-Shiller index.
Bad news-home prices are still down relative to prior years.
What does "prior years" mean? Try the Fall of 2003! That is the rough equivalent of where we are today, 10/27/2009. Nice, huh? While you chew on that stat, metro ATL lost 27,800 construction jobs in September. What do you think will happen when the tax credit goes away in December? I read a quote from one economist that sales are predicted to drop 5% and eventually bottom out in 2010.
SO... do you have time to contact your leaders in Congress NOW?
Bad news-home prices are still down relative to prior years.
What does "prior years" mean? Try the Fall of 2003! That is the rough equivalent of where we are today, 10/27/2009. Nice, huh? While you chew on that stat, metro ATL lost 27,800 construction jobs in September. What do you think will happen when the tax credit goes away in December? I read a quote from one economist that sales are predicted to drop 5% and eventually bottom out in 2010.
SO... do you have time to contact your leaders in Congress NOW?
Friday, October 23, 2009
Home-buyer Tax Credit
Save the credit! Here is the text of an email newsletter from Senator Johnny Isakson. I agree with his efforts and I hope you contact YOUR representative to push this important legislation!
Text as received in his email:
"Dear Friends,
This week was another busy one in Washington as health care reform dominates the headlines and as momentum picked up on extending and expanding the first-time homebuyer tax credit, which is set to expire on November 30, 2009.
On Tuesday, I testified before the Senate Committee on Banking, Housing and Urban Affairs about the need to further restore the housing market and energize housing demand by expanding the first-time home buyer tax credit passed by Congress earlier this year.
I shared with the committee my personal experience as the President of a real estate company during the mid-1970s when Congress in 1975 passed a $2,000 home buyer tax credit. The credit drove buyers back to the market and ended the housing recession within a year.
During my 33-year career in real estate, I weathered four housing recessions and experienced many challenges and difficult markets, but never anything like the current housing market in America. America’s families have lost trillions of dollars in home equity as home values have fallen, and in some markets, continue to fall today. The current home buyer tax credit is set to expire on November 30, right as we are approaching the worst three months of the year for the housing market. It is imperative that we retain the momentum we have gained as a result of the current credit and go into the spring market with the increased consumer confidence necessary for establishing a viable market.
I believe the current first-time home buyer tax credit has made a difference. However, the real housing recession is not with first-time home buyers, but in the “trade-in” or “move-up” market in which Americans are putting off purchasing their next home.
I will offer an amendment to the legislation extending unemployment benefits that would extend and expand the current homebuyer tax credit. The amendment would keep the amount of the credit at $8,000, but would remove the first-time homebuyer requirement, extend the tax credit until June 30, 2010, and raise the income limits to $150,000 for an individual or $300,000 for a couple.
For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return. Homebuyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date. However, this 36 month recapture provision would not apply in the case of a member of the Armed Forces on active duty who moves pursuant to a military order and incident to a permanent change of station.
To view my testimony from Tuesday’s Senate Banking Committee hearing, click here. "
WAY TO GO JOHNNY!
Text as received in his email:
"Dear Friends,
This week was another busy one in Washington as health care reform dominates the headlines and as momentum picked up on extending and expanding the first-time homebuyer tax credit, which is set to expire on November 30, 2009.
On Tuesday, I testified before the Senate Committee on Banking, Housing and Urban Affairs about the need to further restore the housing market and energize housing demand by expanding the first-time home buyer tax credit passed by Congress earlier this year.
I shared with the committee my personal experience as the President of a real estate company during the mid-1970s when Congress in 1975 passed a $2,000 home buyer tax credit. The credit drove buyers back to the market and ended the housing recession within a year.
During my 33-year career in real estate, I weathered four housing recessions and experienced many challenges and difficult markets, but never anything like the current housing market in America. America’s families have lost trillions of dollars in home equity as home values have fallen, and in some markets, continue to fall today. The current home buyer tax credit is set to expire on November 30, right as we are approaching the worst three months of the year for the housing market. It is imperative that we retain the momentum we have gained as a result of the current credit and go into the spring market with the increased consumer confidence necessary for establishing a viable market.
I believe the current first-time home buyer tax credit has made a difference. However, the real housing recession is not with first-time home buyers, but in the “trade-in” or “move-up” market in which Americans are putting off purchasing their next home.
I will offer an amendment to the legislation extending unemployment benefits that would extend and expand the current homebuyer tax credit. The amendment would keep the amount of the credit at $8,000, but would remove the first-time homebuyer requirement, extend the tax credit until June 30, 2010, and raise the income limits to $150,000 for an individual or $300,000 for a couple.
For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return. Homebuyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date. However, this 36 month recapture provision would not apply in the case of a member of the Armed Forces on active duty who moves pursuant to a military order and incident to a permanent change of station.
To view my testimony from Tuesday’s Senate Banking Committee hearing, click here. "
WAY TO GO JOHNNY!
Headlines to ponder...
Take a glance at the headlines below. I have two questions for you: why has the $8,000 tax credit for 1st-time home buyers been extended? Why has it not been expanded to ALL buyers? Why are we wasting so much time on health insurance? I am outraged at the government losing sight of what is truly the most important thing in our country right now: THE ECONOMY! Read the headlines; do you agree with me?
FED SURVEY: HOUSING, MANUFACTURING DRIVE RECOVERY (10/21)
BERNANKE URGES CONGRESS TO ACT NOW ON OVERHAUL (10/23)
OBAMA TO REFOCUS BAILOUT ON SMALL BUSINESSES (10/21)
US HOME SALES RISE 9.4% IN SEPTEMBER (10/23) Sidenote-why? THE TAX CREDIT!
23 STATES REPORT HIGHER UNEMPLOYMENT IN SEPTEMBER (10/21) Yes, GA was one too!
HOUSING STARTS RISE IN SEPTEMBER; WHOLESALE PRICES DIP (10/23)
And now back to your regularly scheduled program already in progress: "How Congress will raise taxes on all Americans and effectively kill small businesses, while not fully accomplishing the stated goal of insurance for all (while bankrupting this once-proud Nation)".
Oh what the heck--one last thought: what got us in this mess? Housing. What will get us OUT of this mess? HOUSING, not insurance....
FED SURVEY: HOUSING, MANUFACTURING DRIVE RECOVERY (10/21)
BERNANKE URGES CONGRESS TO ACT NOW ON OVERHAUL (10/23)
OBAMA TO REFOCUS BAILOUT ON SMALL BUSINESSES (10/21)
US HOME SALES RISE 9.4% IN SEPTEMBER (10/23) Sidenote-why? THE TAX CREDIT!
23 STATES REPORT HIGHER UNEMPLOYMENT IN SEPTEMBER (10/21) Yes, GA was one too!
HOUSING STARTS RISE IN SEPTEMBER; WHOLESALE PRICES DIP (10/23)
And now back to your regularly scheduled program already in progress: "How Congress will raise taxes on all Americans and effectively kill small businesses, while not fully accomplishing the stated goal of insurance for all (while bankrupting this once-proud Nation)".
Oh what the heck--one last thought: what got us in this mess? Housing. What will get us OUT of this mess? HOUSING, not insurance....
Wednesday, October 14, 2009
10,000
Did you hear that cheer? I think I may have heard it all the way down here in Georgia--the Dow briefly went above 10,000 today, the first time in a year and up greatly since hitting a 12-month low of 6547.05 in March 9th. Will it close that high today? Who knows, but it's a huge psychological boost and futher proof that we are slowing coming out of this recession. HOWEVER, we still have the double bogey of unemployment and the potential for inflation.
Speaking of boosting the economy, take a second to contact your representatives in Congress to recommend that they extend the $8,000 tax credit for first-time homebuyers AND it would help if you pushed them to open that tax credit up for ALL homebuyers! That would truly boost the economy and remember that this mess started with housing and housing can bring us back!
Use this link to find your representative!
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