HARRY'S COLUMN

 

THIS IS THE FIRST ANNUAL "GOOD NEWS - BAD NEWS" ISSUE

 

 

FIRST, THE GOOD NEWS -

 

 

HOME SALES RISE

 

The National Association of Realtors has announced that pending home sales rose again in September, marking eight consecutive monthly gains - the longest streak since measurement began in 2001.

 

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September 2009, rose 6.1% to 110.1 from a reading of 103.8 in August, and is 21.2% higher than September 2008 when it stood at 90.9%. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

 

Lawrence Yun, NAR chief economist, said the momentum us understandable. "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax-credit at the end of the month", he said. "Home values will stabilize sooner rather then over-correcting. That, in turn will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery".

 

Yun added that strong near-term reports should not be overstated. "We're clearly not out of the woods because an excess of homes remains on the market despite recent improvements", he said. "Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory".

 

NO SOONER SAID THAN DONE - HOMEBUYER TAX CREDIT EXTENSION AND EXPANSION IS ENACTED

 

Congress has just extended the tax credit for first-time homebuyers into 2010. In order for the first-time homebuyer to obtain the $8000 tax credit, the property must be under contract by April 30, 2010 and must close by June 30, 2010.

 

In addition, Move-up buyers can now receive an income tax credit of $6500. This should stimulate home sales and motivate Buyers to "buy-now" and protect themselves against the inevitable inflation that looms ahead.

 

There is a maximum qualifying price of $800,000. Single individual purchasers can earn up to $125,000 and couples can earn up to $225,000, to qualify for the tax credit.

 

Robert E. Story Jr., chairman of the Mortgage Bankers Association said in a statement about the extension, "At a time when we are finally starting to see some signs of life in the housing and mortgage markets, extending and expanding the homebuyer tax credit is a critical step to keeping the momentum".

 

SPRINGS UTILITY BILLS LOWEST IN THE STATE

 

Colorado Springs homeowners have the lowest utility bills in the state.   

 

The third quarter 2009 ACCRA Cost of Living Index shows that typical combined electric and natural gas bills in Colorado Springs average $125.20 a month compared to $155.84 for all other Colorado cities. (Denver is highest, with $200.52). Energy bills nationwide average $179.38.

 

Bill amounts are determined by typical energy consumption in each city and rates in effect in the third quarter of 2009.

 

The ACCRA Cost of Living Index is produced by the Council for Community and Economic Research, a nonprofit research group.

 

ARE YOU READY FOR THE COMING INFLATION ?

 

How can you protect yourself from the inflation that will result from the excessive spending that is occurring at the state and national level? Your best bet is to invest in real estate. The value of your investment will rise right along with inflation, and, considering the low-interest rate mortgage money currently available, buying a home right now is the best way to protect yourself from the inevitable falling value of the dollar. Give me a call and we can discuss our current market.

 

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

 

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

 

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

 

NOW FOR THE BAD NEWS !!!

 

If you own a home, you should be aware of the proposed Bill, H.R. 2454: American Clean Energy and Security Act of 2009  This Act, sometimes referred to as "Cap and Trade", has already been passed by the House of Representatives and will soon be considered by the Senate.

 

Beginning 1 year after enactment of the Act, you won't be able to sell your home unless you retrofit it to comply with the energy and water efficiency standards of this Act. The CBO estimates that, in just a few years, the average cost to every family of four will be $6,800 per year.

 

To get permission to sell your home, you will have to have your home inspected by the EPA Administrator (estimated cost for the annual inspection - $200) and retrofit your home to meet whichever standards are not met. (This requirement will apply to mobile homes, as well). There are automatic standards upgrades written into the bill, and, in addition, the Administrator is authorized to upgrade standards as he/she sees fit.

 

Within five years, 90% of all homes must be measured and "labeled" Unless a current label is affixed to your home in a conspicuous location, you will not be able to sell it.  

 

True, the Act allows the government to give grants to comply with the retrofit program requirements, but the state can set standards on who qualifies for such grants. Thus, the price of your home and/or your income will probably determine whether you are eligible for such grants. As always, middle class homeowners will have to pay for the retrofits out of their own pockets, as well as subsidizing all those who are exempted from paying.

 

Regardless of which state you live in, this bill will affect you. We urge you to contact your congressman and senator and urge them to vote "NO" on this proposed bill.

 

(It would seem that this bill should more appropriately be titled American Clean Energy and Security Act of 1984 !!)

 

 

JOKE OF THE WEEK

 

Doctor: Well, I have good news and bad news.

Patient: Go with the good news first.

Doctor: You have 24 hours to live.

Patient: What?! How about the bad news?

Doctor: I forgot to call you yesterday.