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Signs of a Housing Recovery - But Will it Last? - 2009-08-30 |
There have been several hopeful signs on the housing horizon recently, signs that the recession may have already ended, and possible signs that a housing recovery is, indeed, on the horizon. But it may be too soon to break out the champagne and caviar.
At its most recent open market committee meeting, the Federal Reserve issued a statement saying:
* the Fed believes that "economic activity is leveling out," which is Fed-ese for a belief that the worst of the recession is behind us, and that more normal economic growth lies ahead.
* In addition, the committee reports "conditions in financial markets have improved further in recent weeks." In other words, the stock market is showing a level of confidence not seen in the past two years, and that the central bank sees that as a positive sign going forward.
* "Household spending has continued to show signs of stabilizing" means that you and I are not as worried about everything as we were earlier in the year. In fact, the Bureau of Labor Statistics collects tons of data on what the average household spends on everything from food and housing to transportation and health care. The more we spend, the healthier the economy.
* Finally, Dr. Bernanke and the boys said they are anticipating "a gradual resumption of sustainable economic growth" and that they expect inflation to remain subdued "for some time." In English, that means they think interest rates will be low for a while and that cheap money will help the economy recover faster.
While it's hard to draw joy from any Federal Reserve announcement, this most recent communication was about as upbeat as one can expect from the typically conservative Open Market Committee. Couple that with the recent news of an upturn in new home construction, and we may have the makings of a recovery.
Why, you may ask, is the new home market so important? Here's your answer:
According to a 2008 study by the National Association of Home Builders, each new home built represents about three new jobs, and adds about $90,000 to local, state and federal coffers in the form of taxes, permits and fees. In contrast, the resale of an existing home adds far less to the economy. And according to government statistics, new home sales were up in July for the fifth straight month in a row.
Builders in metro Atlanta say that one important part of that recovery has been the Federal Tax Credit for First Time Homebuyers. It provides a direct cash credit of ten percent of a home's purchase price, up to a maximum of $8,000. But that program is currently slated to end on the last day of November, and no one knows how buyers will react.
Until then, let's keep the cork in the bottle.
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, July 30th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 06th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 13th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 20th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 27th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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John Adams Presents
“The MetroVestAtlanta.com REO Bus Tour”
Get on the bus for a tour of South DeKalb County’s “Real Estate Owned”
homes. Each house you visit will be available that day for purchase at
a giveaway price, regardless of current condition. Financing is
available!
Throughout the day, we will hear from mortgage providers, people in the
construction business and property managers all discussing today’s
situation with Bank Owned REO properties.
Who Should Attend: Investors, Realtors, Lenders, Prospective Buyers, and
anyone who might want to buy a super-bargain house and either do the
rehab themselves or have all the work performed by the pros.
You will see abandoned dumps and finished products, and everything
in between. And Snap will be there to answer all your questions and
explain the rehab and rental strategies.
Saturday, August 21st, 9:30 AM to 4:00 PM
Your $49 fee includes the bus tour and lunch. You must make reservations. No walk-ups.
There is limited seating and the seats are filling fast. ACT NOW before you miss the bus.
We will be meeting at Suburban Plaza, 2643 N. Decatur Road and Church Street, Lower Level, Decatur 30033 (beneath Hancock Fabrics, in the arcade.)
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