Market Observation: Consumer Confidence Rises

Photo by bretac on Flickr.

It’s true, the market is on its way up, and if it hasn’t completely bottomed out, it cannot get much worse. Mortgage rates of 4.7%? At these rates, anybody eligible would jump on the opportunity. Based on numerous surveys, people are becoming more confident by adamantly applying for mortgages. In conjunction with the increase in consumer confidence, interest rates are nearing historic lows, and prices have dropped substantially. It would be unrealistic for anyone to think that the economy will continue to drop so drastically, especially since sales and pending sales of homes have increased, and a recent report by NAHB testified that shoppers’ visits to new houses for sale are “on the rise.” Nobody can ever predict the absolute bottom, or the exact top of the market. Now’s the time; things can only get better. In the past, our economy experienced similar signs during a recession before the market made a turn-around. If you have the means, you better hop on the train before it’s too late, because before you know it, the prices of homes will once again sky rocket….

Home Builder Confidence Posts Biggest Gain In Five Years [NAHB]

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Paul Bishop's Truth behind the World Savings Bank Fiasco

We all know that the reason we are in this economic recession is primarily due to the abundance of bad loans that were issued by banks. Below is a 60 Minutes story of a mortgage salesman named Paul Bishop who discusses the demise of World Savings and the reason why Wachovia inherited billions of dollars in debt when they acquired this bank. This is a very interesting video and now I know why Wachovia was another victim of the sub prime mortgage market.

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Please Call and Preserve the $15,000 Tax Credit!

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I thought we were home free and clear when the Senate announced an amendment to the stimulus package for a $15,000 homebuyer tax credit last week. I just received news that there is a possibility that the credit could be scaled back before the Senate casts its final vote on Tuesday. It's extremely important we don't let this happen, so I am asking everyone to please take a second out of their day to call the number below and and tell them to preserve the entire $15,000 credit . With everyone's support we can make the $15,000 tax credit a reality! It's imperative you call before Tuesday!

PLEASE FOLLOW THE INSTRUCTIONS BELOW

* Beginning the morning of Monday, February 9, please call your Senators at 1-866-924-NAHB (6242)and tell them to preserve the entire $15,000 credit in the Senate version of the economic stimulus bill.

After listening to a brief message about the tax credit, you will be asked to enter your zip code so that you can be connected to your House and Senate legislators. The tax credit message should only go to your Senators. So, after the prompt, please press "2" to skip your Representative and be connected to your first Senator. After you speak to your first Senator, simply stay on the line to automatically be connected to your second Senator.

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$15,000 Tax Credit Beefs Up the Big Obama Bail Out Even More

Photo by Breslow on Flickr.

Breaking news has made the media and it's my duty to share it with you....the Senate voted to include a $15,000 homebuyer tax credit to the stimulus package a.k.a. the big Obama bailout. This is a huge step up from the original $7,500 tax credit because it is available to all homebuyers and it does not need to be repaid back. I'm a guy of faith and if history repeats itself, I'm confident we will see a recovery sooner rather than later. In the mid 1970's we faced a similar housing crises and the tax credit passed by congress then resulted in stabilized home values, decreased housing inventories and a recovered market. A mixture of history and faith goes a long way!

Read the full release from Isakson's office here [US News & World Report]
Analysis by the National Association of Home Builders [CNBC.com]

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Positive Signs of Market Recovery

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I know some of you must be jaded by the market, but don't miss the boat because it was reported that sales in December rose by 6.5% according to a KnowledgePlex article. It's common sense that when prices plunge, the people in the market that have been dormant for the past few years are seizing the opportunities, which is what I see happening here. Typically inventories of unsold homes decline about 8% to 10% in December, but in December of 2008 inventories dropped 11.7% to 3.68 million. This shows me that we are starting to recover and that opportunities are out there. The signs are there, but you can't be indecisive when making a decision because veterans in the the industry will hone in on good opportunities and act on it right away, leaving you in the dust.

Existing-Home Sales Rise 6.5% as Prices Plunge [KnowledgePlex]

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Optimistic Predictions of 2009!

Photo by Antonio Goya on Flickr.

I am for sure no "Negative Nancy"...therefore if I come across a positive outlook on the economy, I often tend to share it with my loyal readers to brighten up their day. I found the quote below on the Brownstoner that was taken from an article setting forth nine predictions of 2009. Stay focused on the optimistic predictions! Do you think Mark Sunshine is being overly confident or not?

Prediction: In January, the banks will realize that they cannot avoid lending forever. The Federal Reserve will financially punish any bank that refuses to lend by manipulating interest rates so that banks that hoard cash lose money. From the industry ashes a banking prophet will emerge who will preach the gospel of positive net interest spread through responsible lending.

— Mark Sunshine of First Capital

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