Good morning! Today is August 26th, 2009.
Been I while but I have some good news! The Standard & Poors reported yesterday that sales of single-family homes rose for the 2ndconsecutive month, adding to the notion that our three-year housing slump may be coming to an end!!! YAY… You know, it seems like I do this type of blog every day.
Prices of single-family residential homes rose for the second consecutive month in June, Standard & Poor’s reported Tuesday. Quarter-over-quarter gains were also evident during the second quarter of the year, for the first time since 2006.
Ten or twenty metropolitan areas saw an increase in values of 1.4% in June from May and that’s nearly 3 times the 0.5% increase in May. Preety cool right? Again, although I’m really happy about these numbers, it’s hard to do back flips right now when you consider what it’s really taken to get here. I mean, really, how much effect does the $8,000 first-time home buyer incentive had on the market, right?
A prominent housing index offered more signs that the pace of decline in housing prices is easing and recovery may be near.
Home prices declined 14.9% in the second quarter versus the same period last year, according to the S&P Case-Shiller U.S. National Home Price Index. That compares to a 19.1% year-over-year decline in the first quarter.
They are smoking on something… but if you want to read it go right on ahead
Cash For Clunker: The Problem is the Solution
Hey, to give you an idea of what we think: we just got rid of the Cash for Clunkers government handout; now watch what’s going to happen to car sales next month…. I mean, GM’s gonna have to re-layoff those 1500 employees, and that’s going to mirror home sales.
Prime example – a friend of mine has a Ford Taurus he cannot sell on auto trader for $1,500 for 2 months. Which means… over priced. Takes it to a dealer for Cash for Clunkers… receives $4,500. Only in America Folks!
Federal Reserve Scam
Also, what happens when the Federal Reserve quits a $300 billion in long-term government bond and $750 million in mortgage-backed security spending spree and our artificially deflated rates go right back up? You know, doing away with handouts and increasing the monthly cost of your house? Yeah, I do feel this is going to have an effect on our market.
Now, the fact that housing prices have dropped to the point where you can often times own a house cheaper than you can rent it should keep us from doing another complete nose dive. But listen guys, prepare for more bumps in the road. We’re in for a bit of a long haul here.
The Federal Reserve has been ordered to reveal just how much cash they handed out during the great meltdown, okay? They lost a Freedom of Information Act lawsuit brought on by Bloomberg News. Oh yeah and of the $2 trillion in assets, it’s unclear how much and to whom they gave the money to. The lawsuit is going to force the Fed into some degree of accountability, and that’s a good thing. However, it’s widely speculated that the Fed itself does not know to whom or how much money they had given out.
Now, I don’t know about you, but I find their lack of transparency and knowledge of their product a little bothersome. What is their product? Money! And they don’t know where and who they gave it to. That’s interesting, isn’t it? In spite of Bloomberg’s lawsuit, the decision to retain Bernanke is an indication that the administration thinks a recovery is not a foregone conclusion.
Isn’t it ironic that the same day Bloomberg’s lawsuit is settled, Bernanke is nominated for a second term of four years and the likes of Warren Buffet has come out in his defense. However, in light of Bloomberg’s recent victory, these problems could make for a more spirited Senate confirmation process early next year.
Go Postal
The U.S. Postal service is offering to buy out 30,000 workers in a bid to save $500 million. By the way, if you can make do without them now, why did you hire them in the first place? Idiots… this is government economics hard at work for you guys. Why hire one when you can get two for twice the price, right? Also, do you really think it’s a good idea to have 30,000 unemployed postal workers out there? A little twitchy…
Short Sale Tips & Tricks
So many people claim to be short sale specialist. All you have to do is ask one question to separate the bull sh*ters with the real deal. Ask them “Isn’t 1099-c and IRS form 982 wonderful“ – If they look confused or say no, they are idiots. Talk to people who knows how to get these deals closed. We pay full commission on short sales.
Learn How to Get Your Short Sales Closed
Till Next Time,
Jeff Coga
Tags: Cash for Clunkers, Federal Reserve Scam, jeff coga, real estate market outlook, short sales buyers, Short Sales Tips & Tricks
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