The North Fulton Blog

As time passes, all manner of changes continue to take place.  We're now told by the head of the FED that the recession is over.  But the unemployment rate continues to remain outrageously high.  And it doesn't show any signs of improving anytime soon.

All indices and survey and reports continue to show improvement in the real estate market.  In July, the new home sales rate increased by 9.6%.  Home prices are starting to move upward once again, mind you at miniscule rates, but improving nonetheless.  More people are out buying homes now than previously this year.  And that's great news for both the economy and for real estate agents!

It seems as we approach the deadline for the $8000 tax credit, everyone is jumping on the bandwagon to increase and extend this measure.  It's about the only program of all the stimulus packages that has worked (along with Cash for Clunkers).  Most comments I've heard are urging a higher amount ($12000 to 15000) and an opening of the tax credit to all buyers.  If that were to occur, I believe we would see a huge improvement to our economy. 

A few side notes:

A little known FHA loan program finances the purchase and renovation of an existing home.  The plan, known as the 203(k) loan lets qualifying candidates borrow a single loan with 3.5% down payment to cover both the selling price and the cost of licensed contract work to improve the property.  Check it out or call me and I'll help you.

Many potential buyers are dismissing the new home market for a variety of reasons.  But why is this market so important?  Each new home built represents about 3 new jobs, and adds about $90,000 to local, state and federal coffers in the form of taxes, permits and fees.  This could be a great benefit to our economy.

Foreclosures are with us for a while longer.  Don't be misled by the good real estate news!  We have several more years of foreclosures with us that will continue to effect the market.  Sadly, many people will lose their homes.  Conversely, my buyers will benefit from the "deals" they'll get on foreclosure properties.  It's my guess, that the real estate market and the economy won't fully recover until we've peaked on the foreclosure market.  That may take some time.