Home arrow Resources arrow AJC Articles arrow Signs of a Housing Recovery - But Will it Last? - 2009-08-30

Your Cart

Show Cart
Your Cart is currently empty.

Login

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.
 
< Prev   Next >

Upcoming Events

John Adams Presents


LANDLORD SURVIVAL TRAINING

with John Adams
Tuesday, February 28th

Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.

Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.

For more details and to register click HERE

PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th

One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.

At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.

In this 3 hour information packed seminar, John will teach you how to:

1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary

If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.

For more details and to register click HERE