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?
Tuesday, October 27, 2009
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!
Wednesday, September 23, 2009
Re: Yesterday's Environmental post
This article from Britain is pretty frank in its assessment of current US politics; much more so than my rambling posting yesterday. Pretty strong words for a country not used to 'leading the world', eh? I'm still a proud American, but we need to get back on track--and fast!
Tuesday, September 22, 2009
Death to the USA?
It seems that the US is under attack on many fronts. One of which is from within, as we battle over (fill in the blank, or just say 'everything') in a highly partisan fashion, as if party 'loyalty' (read: special interest groups and lobbyists, or just say MONEY) is more important than our country. BOTH parties are guilty and I am ashamed at our government. PERIOD. It makes me want to go read Vince Flynn's Term Limits again! We are also under attack from terrorists here (arrests in NYC and Colorado?) and abroad. Regardless of that fact, and how G-20 wants to further emasculate our country, I hear today that the UN wants us to step it up re: climate change. Likewise, President Obama pledges that the US will do its part to reduce greenhouse gases and emissions. I actually agree with him in principle. While I do think Al Gore is an alarmist, self-serving person (with tainted 'facts' to support his beliefs), climate change is something for us to deal with. While I don't buy into all the arguments (and vehemently argue that 'cap and trade' is the worlds largest shell game) I feel that we CAN do so much more to work on reducing emissions.
Today's rant? The UN wants us to curb emissions--the main emissions are from our coal-fired plants. I know that most of our utilities are entrenched with this technology. Likewise, the coal 'scrubbers' to clean the emissions are incredibly expensive. Who pays for that? Not only do the utility companies, but WE pay for it as well. However, the utilities have to 'ask' to raise rates and the PSC won't always allow it, so the utilities continue to put off implementing scrubbers as long as possible; can't say I blame them!
What is the white horse for utilities? Windmills are cool (check out the photo from Maui, Hawaii)
but not all areas are conducive to generating the power necessary to run our utilities; likewise, how do you get the power to the people (sorry, easiest phrase to use!). The best option may be nuclear power. Yep, I said the n-word (not THAT n-word, but it's almost as offensive to enviromentalists!). I acknowledge that the spent fuel is an issue, but nuclear is a great alternative; an alternative that finds great success throughout the world--in countries without as much regulation. If we can run a fleet of nuclear powered submarines, why can't we figure out how to build a 'standardized' nuclear power plant? Figure out an easily duplicated design and BUILD IT. Clean power; ask the French! 3 Mile Island was a mistake as was Chernobyl. We are one of the most high-tech countries in the world--surely we can build a new plant that is safe? Make that a priority, Mr. President; that will be a great legacy for the future of our country!
Monday, September 21, 2009
Mixed bag Monday
Economic indicators missed their mark today by a tenth. Expectations for the index to rise .7 percent were off resulting in a smaller rise of .6%. While the markets are currently on 'sell' mode this morning since the numbers were off, I do think we need to focus on the fact that this is still a POSITIVE number, albeit off the pace expected. So we've had five months of rising indicators but unemployment still lingers. Yes, temp firms are seeing some increased business but not for temp to PERM jobs as of yet. Here in ATL, economists feel that job recovery is coming in 2010 but views differ on the amounts of job increases--but most feel that it may be later in 2010 than earlier so we're definitely not out of the woods yet.
What about real estate? Interest rates are still currently low, but the expiring $8000 tax credit could cause big problems AFTER November 30th as the tax credit incentive disappears. Senator Isaakson is fighting for an extension; hopefully he will be successful (insert rant about this credit being only for 1st-time buyers here).
Don't forget that we still have a lot of unsold inventory, including a lot of partially-built subdivisions. Factor in all the foreclosures in the market and there are still inventory concerns. If you wanted to buy, you have a golden opportunity. If you STILL rent you are an idiot (unless you have a really good reason to have temporary housing--if not, as you throw away your rent each month, remember that you're an idiot :) Keep the faith; like our rain, this can't last forever! Happy Monday! Bo
What about real estate? Interest rates are still currently low, but the expiring $8000 tax credit could cause big problems AFTER November 30th as the tax credit incentive disappears. Senator Isaakson is fighting for an extension; hopefully he will be successful (insert rant about this credit being only for 1st-time buyers here).
Don't forget that we still have a lot of unsold inventory, including a lot of partially-built subdivisions. Factor in all the foreclosures in the market and there are still inventory concerns. If you wanted to buy, you have a golden opportunity. If you STILL rent you are an idiot (unless you have a really good reason to have temporary housing--if not, as you throw away your rent each month, remember that you're an idiot :) Keep the faith; like our rain, this can't last forever! Happy Monday! Bo
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