Saturday, April 14, 8:30 a.m. - Noon
Villages of Bear Creek Park
Grab a friend and meet us at the amphitheater in Villages of Bear Creek Park for breakfast.
Then, help us beautify our community by picking up trash in the heart of Euless.
Afterwards, meet us back at Villages of Bear Creek Park for some free pizza, drinks and a Texas Trash Off T-shirt.
For more information please call Jerry Poteet at 817-685-1449.
Get involved and beautify your corner of the world.
Thursday, April 9, 2009
Friday, March 27, 2009
Earth Hour 2009
On March 28, 2009
Earth Hour will demonstrate that by working together, each one of us can make a positive impact on this global issue. Governments, businesses, communities and individuals across the globe will participate in Earth Hour and pledge to make changes that will curb their greenhouse gas emissions. Turn off your lights from 8:30-9:30 p.m. local time on Saturday, March 28, 2009 During that hour replace your old light bulbs with energy-efficient compact fluorescent bulbs Commit to reducing your energy consumption in the year ahead
Earth Hour will demonstrate that by working together, each one of us can make a positive impact on this global issue. Governments, businesses, communities and individuals across the globe will participate in Earth Hour and pledge to make changes that will curb their greenhouse gas emissions. Turn off your lights from 8:30-9:30 p.m. local time on Saturday, March 28, 2009 During that hour replace your old light bulbs with energy-efficient compact fluorescent bulbs Commit to reducing your energy consumption in the year ahead
Tuesday, March 24, 2009
New $8000 Tax Credit for Home Buyers
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new $8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Lisa Warren
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Lisa Warren
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
Saturday, March 7, 2009
Energy Vampires: Fact or Fiction
It's well-known that most electronic devices in our homes are sucking up energy even while they are turned off. But for all the information out there, many questions remain. I got hundreds of reader questions after writing the post What's wasting energy in your home right now. Below are answers to the five most common inquiries:
Which electronic devices waste the most energy when they are turned off but still plugged in?
Set-top cable boxes and digital video recorders are some of the biggest energy hogs. Unfortunately, there's little consumers can do since television shows can't be taped if boxes are unplugged. It also typically takes a long time to reboot boxes.
However, some of the other major consumers of standby power are more easily dealt with: computers, multifunction printers, flat-screen TVs, DVDs, VCRs, CD players, power tools, and hand-held vacuums. The Lawrence Berkeley National Laboratory (LBNL) measured standby power for a long list of products.
While it's true each individual product draws relatively little standby power, the LBNL says that when added together, standby power can amount to 10% of residential energy use.
Why do electronic devices use energy when they are switched off?
Electronics consume standby power for one of two reasons, says Chris Kielich of the Department of Energy. They either have an adapter that will continue to draw electricity, or they have devices (such as clocks and touchpads) that draw power. Anything with a remote control will also draw standby power, she says, since the device needs to be able to detect the remote when it's pushed.
Does everything suck energy when it's plugged in and turned off?
No. If your coffeemaker or toaster doesn't have a clock, then it's probably not using standby power, says Kielich. Chances are your hair dryer and lamps (although they may have a power adapter for the dimmer) are not drawing standby power either, she says. Devices with a switch that physically breaks the circuit don't consume standby power.
Will switching things on and off shorten their life?
Probably not, says Kielich. You'd have to turn devices on and off thousands of times to shorten their lives. The real downside, she says, to unplugging electronics is that clocks and remotes will not work, and you do have to reset everything.
Can you ruin batteries by unplugging battery chargers and causing batteries to completely discharge?
It could be a possibility, says Kielich. Her advice: Don't let batteries get completely drained. But you don't need to have things like hand-held power vacuums and drills plugged into the charger when it's 100% charged, or even 50% charged.
Power Strip FAQs
Plugging electronics into a power strip and turning it off when you're not using it is a widely prescribed solution for curbing vampire power. Here are answers to common questions:
Power strips draw energy when they are turned on, but not when they are switched off.
Any decent power strip should have surge protection, according to Kielich. Flicking your power strip on and off will not create a power surge capable of damaging electronic devices. In fact, it will protect devices from other surges.
Several readers were worried about the possibility of fires caused by plugging too many things in at once. If you plug in the allowed number of devices, then power strips are safe, says Kielich. Just don't plug your power strip into another power strip, or you run the risk of creating an overload
Which electronic devices waste the most energy when they are turned off but still plugged in?
Set-top cable boxes and digital video recorders are some of the biggest energy hogs. Unfortunately, there's little consumers can do since television shows can't be taped if boxes are unplugged. It also typically takes a long time to reboot boxes.
However, some of the other major consumers of standby power are more easily dealt with: computers, multifunction printers, flat-screen TVs, DVDs, VCRs, CD players, power tools, and hand-held vacuums. The Lawrence Berkeley National Laboratory (LBNL) measured standby power for a long list of products.
While it's true each individual product draws relatively little standby power, the LBNL says that when added together, standby power can amount to 10% of residential energy use.
Why do electronic devices use energy when they are switched off?
Electronics consume standby power for one of two reasons, says Chris Kielich of the Department of Energy. They either have an adapter that will continue to draw electricity, or they have devices (such as clocks and touchpads) that draw power. Anything with a remote control will also draw standby power, she says, since the device needs to be able to detect the remote when it's pushed.
Does everything suck energy when it's plugged in and turned off?
No. If your coffeemaker or toaster doesn't have a clock, then it's probably not using standby power, says Kielich. Chances are your hair dryer and lamps (although they may have a power adapter for the dimmer) are not drawing standby power either, she says. Devices with a switch that physically breaks the circuit don't consume standby power.
Will switching things on and off shorten their life?
Probably not, says Kielich. You'd have to turn devices on and off thousands of times to shorten their lives. The real downside, she says, to unplugging electronics is that clocks and remotes will not work, and you do have to reset everything.
Can you ruin batteries by unplugging battery chargers and causing batteries to completely discharge?
It could be a possibility, says Kielich. Her advice: Don't let batteries get completely drained. But you don't need to have things like hand-held power vacuums and drills plugged into the charger when it's 100% charged, or even 50% charged.
Power Strip FAQs
Plugging electronics into a power strip and turning it off when you're not using it is a widely prescribed solution for curbing vampire power. Here are answers to common questions:
Power strips draw energy when they are turned on, but not when they are switched off.
Any decent power strip should have surge protection, according to Kielich. Flicking your power strip on and off will not create a power surge capable of damaging electronic devices. In fact, it will protect devices from other surges.
Several readers were worried about the possibility of fires caused by plugging too many things in at once. If you plug in the allowed number of devices, then power strips are safe, says Kielich. Just don't plug your power strip into another power strip, or you run the risk of creating an overload
Tuesday, February 10, 2009
Economic Stimulus Bill
A $15,000 homebuyer tax credit, higher loan limits for Fannie Mae, Freddie Mac and FHA, and government spending to lower mortgage rates are all in play as Congress and the Obama administration near agreement on an economic stimulus bill and financial stability plan for banks.
The Senate today approved an $838 billion economic stimulus bill that includes a $15,000 homebuyer tax credit, just hours after President Barack Obama's new Treasury secretary unveiled a multitrillion-dollar financial stability plan that includes $50 billion for foreclosure prevention programs.
The financial stability plan may also lead to an expansion of existing efforts by the Federal Reserve to drive down mortgage interest rates by buying mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae.
The version of the economic stimulus bill passed by the Senate in a 61-37 vote relies less on government spending and more on tax cuts to kick-start the economy than the version passed by the House Jan. 28 (see story). Only two Republicans voted for the bill in the Senate -- Sen. Arlen Specter of Pennsylvania and Maine's Olympia Snowe -- and all 37 "no" votes were cast by members of the Grand Old Party.
Differences between the two versions of H.R. 1, the American Recovery and Reinvestment Act of 2009, must now be ironed out in a conference committee.
The House version of the bill would restore the upper limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs to $729,750 in high-cost housing markets, where they stood for much of 2008 before being reduced to $625,500 -- a step endorsed by many real estate industry groups.
The House version of H.R. 1 also contains another provision backed by the housing industry -- elimination of the repayment requirement on an existing $7,500 tax credit for first-time homebuyers that is scheduled to sunset on July 1. But the Senate version of H.R. 1 would go farther, increasing the tax credit to $15,000 and allowing all homebuyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.
The National Association of Home Builders welcomed the Senate's move, saying a $15,000 tax break for all homebuyers could generate nearly 500,000 home sales and create more than 255,000 jobs.
NAHB Chairman Joe Robson said the enhanced tax credit would be "a powerful incentive for homebuyers to get off the sidelines" and urged Congress to make sure the full $15,000 tax credit is included in the final stimulus plan.
In a separate development, Treasury Secretary Timothy Geithner today released details of the Obama administration's new financial stability plan, a successor to the much maligned Troubled Asset Relief Program (TARP).
Geithner said the financial stability plan will include a comprehensive housing program that will provide $50 billion for foreclosure prevention programs. In order to persuade Congress to release the second half of $700 billion in TARP funding, the Obama administration had previously committed to spend $50 billion to $100 billion on a "sweeping effort" to address foreclosures (see story).
Geithner also alluded to a possible expansion of a $600 billion Federal Reserve program to drive down mortgage rates through the purchase of mortgage backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae (see story).
Further details of the housing program will be announced in coming weeks, Geithner said. According to a fact sheet issued by the Obama administration, the Treasury and Federal Reserve "remain committed to expand as necessary the current effort by the Federal Reserve to help drive down mortgage rates."
The housing program will also establish loan modification guidelines and standards for government and private programs, and require all institutions receiving assistance through the financial stability plan to participate in foreclosure mitigation plans. The Obama administration will also build additional flexibility into the FHA's Hope for Homeowners refinance program to enable more distressed borrowers to participate.
While the main goal of the stimulus bill is to create jobs, the financial stability plan is designed to strengthen banks and restart the flow of credit to homeowners and small businesses, Geithner said. Currently, the financial system is working against recovery, even as the recession puts greater pressure on banks, he said.
"This is a dangerous dynamic, and we need to arrest it," Geithner said. The battle for economic recovery must be fought on two fronts -- by jump-starting job creation and private investment, and by getting credit flowing again to businesses and families.
As it has done under the TARP program, the Treasury will continue to invest in banks that need additional capital, but will now impose conditions to ensure "every dollar of assistance" is used to generate additional lending, Geithner said.
In addition, the Treasury, Federal Reserve and Federal Deposit Insurance Corp. will establish a $500 billion Public-Private Investment Fund to buy up toxic loans and assets. The fund could ultimately provide up to $1 trillion in financing, Geithner said, helping to create a market for real estate-related assets that are "at the center of this crisis."
The Treasury and Federal Reserve will also commit up to $1 trillion in backing for a consumer and business lending initiative, building on the Federal Reserve's Term Asset Backed Securities Loan Facility (TALF) announced in November. The program will be expanded to target markets for small business lending, student loans, consumer and auto finance, and commercial mortgages.
The Senate today approved an $838 billion economic stimulus bill that includes a $15,000 homebuyer tax credit, just hours after President Barack Obama's new Treasury secretary unveiled a multitrillion-dollar financial stability plan that includes $50 billion for foreclosure prevention programs.
The financial stability plan may also lead to an expansion of existing efforts by the Federal Reserve to drive down mortgage interest rates by buying mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae.
The version of the economic stimulus bill passed by the Senate in a 61-37 vote relies less on government spending and more on tax cuts to kick-start the economy than the version passed by the House Jan. 28 (see story). Only two Republicans voted for the bill in the Senate -- Sen. Arlen Specter of Pennsylvania and Maine's Olympia Snowe -- and all 37 "no" votes were cast by members of the Grand Old Party.
Differences between the two versions of H.R. 1, the American Recovery and Reinvestment Act of 2009, must now be ironed out in a conference committee.
The House version of the bill would restore the upper limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs to $729,750 in high-cost housing markets, where they stood for much of 2008 before being reduced to $625,500 -- a step endorsed by many real estate industry groups.
The House version of H.R. 1 also contains another provision backed by the housing industry -- elimination of the repayment requirement on an existing $7,500 tax credit for first-time homebuyers that is scheduled to sunset on July 1. But the Senate version of H.R. 1 would go farther, increasing the tax credit to $15,000 and allowing all homebuyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.
The National Association of Home Builders welcomed the Senate's move, saying a $15,000 tax break for all homebuyers could generate nearly 500,000 home sales and create more than 255,000 jobs.
NAHB Chairman Joe Robson said the enhanced tax credit would be "a powerful incentive for homebuyers to get off the sidelines" and urged Congress to make sure the full $15,000 tax credit is included in the final stimulus plan.
In a separate development, Treasury Secretary Timothy Geithner today released details of the Obama administration's new financial stability plan, a successor to the much maligned Troubled Asset Relief Program (TARP).
Geithner said the financial stability plan will include a comprehensive housing program that will provide $50 billion for foreclosure prevention programs. In order to persuade Congress to release the second half of $700 billion in TARP funding, the Obama administration had previously committed to spend $50 billion to $100 billion on a "sweeping effort" to address foreclosures (see story).
Geithner also alluded to a possible expansion of a $600 billion Federal Reserve program to drive down mortgage rates through the purchase of mortgage backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae (see story).
Further details of the housing program will be announced in coming weeks, Geithner said. According to a fact sheet issued by the Obama administration, the Treasury and Federal Reserve "remain committed to expand as necessary the current effort by the Federal Reserve to help drive down mortgage rates."
The housing program will also establish loan modification guidelines and standards for government and private programs, and require all institutions receiving assistance through the financial stability plan to participate in foreclosure mitigation plans. The Obama administration will also build additional flexibility into the FHA's Hope for Homeowners refinance program to enable more distressed borrowers to participate.
While the main goal of the stimulus bill is to create jobs, the financial stability plan is designed to strengthen banks and restart the flow of credit to homeowners and small businesses, Geithner said. Currently, the financial system is working against recovery, even as the recession puts greater pressure on banks, he said.
"This is a dangerous dynamic, and we need to arrest it," Geithner said. The battle for economic recovery must be fought on two fronts -- by jump-starting job creation and private investment, and by getting credit flowing again to businesses and families.
As it has done under the TARP program, the Treasury will continue to invest in banks that need additional capital, but will now impose conditions to ensure "every dollar of assistance" is used to generate additional lending, Geithner said.
In addition, the Treasury, Federal Reserve and Federal Deposit Insurance Corp. will establish a $500 billion Public-Private Investment Fund to buy up toxic loans and assets. The fund could ultimately provide up to $1 trillion in financing, Geithner said, helping to create a market for real estate-related assets that are "at the center of this crisis."
The Treasury and Federal Reserve will also commit up to $1 trillion in backing for a consumer and business lending initiative, building on the Federal Reserve's Term Asset Backed Securities Loan Facility (TALF) announced in November. The program will be expanded to target markets for small business lending, student loans, consumer and auto finance, and commercial mortgages.
Monday, February 9, 2009
"The Sweet Heart Express"
The Grapevine Vintage Railroad’s Sweetheart Express is a romantic escape and a perfect way to celebrate Valentine's Day.
The train will depart at 6:00 pm from the historic Cotton Belt Depot, located at 705 S. Main St. in Grapevine. Violinists will set the mood for your trip, as they will be performing on the platform as you board the train. On board the train, enjoy a selection of hors d'oeuvres. Two cash bars will offer beer, wine and soft drinks. Violinists will stroll through the coaches as the train rolls to the Stockyards.
Upon arriving, at River Ranch you will enjoy dinner and romantic music. A cash bar will be available. Following dinner, there will be dancing, with music provided by a DJ. At 9:15 pm passengers will be instructed to board the train for the return trip. The train will depart River Ranch at 9:45 pm. On the return trip the two of you will receive special gifts of a rose and chocolate. The cash bars will resume and also offer complimentary coffee and water. Dress is casual.
$160 per couple
Sweetheart Express Dates & Times:
Friday, February 13, 2009
6:00 pm Load passengers Depart Grapevine Depot
7:30 pm Arrive at River Ranch
7:30 pm Music starts and Buffet line opens
8:15 pm Dancing starts
9:15 pm Announce return boarding
9:15 pm Board Train
9:45 pm Depart River Ranch
11:15 pm Arrive Grapevine Depot
Saturday, February 14, 2009
6:00 pm Load passengers Depart Grapevine Depot
7:30 pm Arrive at River Ranch
7:30 pm Music starts and Buffet line opens
8:15 pm Dancing starts
9:15 pm Announce return boarding
9:15 pm Board Train
9:45 pm Depart River Ranch
11:15 pm Arrive Grapevine Depot
The train will depart at 6:00 pm from the historic Cotton Belt Depot, located at 705 S. Main St. in Grapevine. Violinists will set the mood for your trip, as they will be performing on the platform as you board the train. On board the train, enjoy a selection of hors d'oeuvres. Two cash bars will offer beer, wine and soft drinks. Violinists will stroll through the coaches as the train rolls to the Stockyards.
Upon arriving, at River Ranch you will enjoy dinner and romantic music. A cash bar will be available. Following dinner, there will be dancing, with music provided by a DJ. At 9:15 pm passengers will be instructed to board the train for the return trip. The train will depart River Ranch at 9:45 pm. On the return trip the two of you will receive special gifts of a rose and chocolate. The cash bars will resume and also offer complimentary coffee and water. Dress is casual.
$160 per couple
Sweetheart Express Dates & Times:
Friday, February 13, 2009
6:00 pm Load passengers Depart Grapevine Depot
7:30 pm Arrive at River Ranch
7:30 pm Music starts and Buffet line opens
8:15 pm Dancing starts
9:15 pm Announce return boarding
9:15 pm Board Train
9:45 pm Depart River Ranch
11:15 pm Arrive Grapevine Depot
Saturday, February 14, 2009
6:00 pm Load passengers Depart Grapevine Depot
7:30 pm Arrive at River Ranch
7:30 pm Music starts and Buffet line opens
8:15 pm Dancing starts
9:15 pm Announce return boarding
9:15 pm Board Train
9:45 pm Depart River Ranch
11:15 pm Arrive Grapevine Depot
Monday, February 2, 2009
Real Estate Outlook: Whats in store for 2009?
What will the new year bring for housing and real estate? It's easy to look at all the negative economic news in the headlines and say - there's no sign that 2009 is going to be any better than 2008.
But here's a different perspective to consider from one of the country's veteran financial analysts -- Richard Bove of Ladenburg Thalmann, an investment banking company.
In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector.
Though it takes awhile for low-cost money to begin having its effect, Bove said he expects "housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase."
Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration -- and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
Already there are positive signs of the turnaround Bove predicts:
Mortgage applications are off the charts, mainly for refis but also to buy houses at affordable prices.
Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms.
Plus we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
And guess what? Americans are actually SAVING again, the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.
There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.
You can ridicule small regional gains as statistically irrelevant, but here's an economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there … because all downcycles tail off and come to an end.
The smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year.
Written by Kenneth R. Harney
But here's a different perspective to consider from one of the country's veteran financial analysts -- Richard Bove of Ladenburg Thalmann, an investment banking company.
In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector.
Though it takes awhile for low-cost money to begin having its effect, Bove said he expects "housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase."
Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration -- and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
Already there are positive signs of the turnaround Bove predicts:
Mortgage applications are off the charts, mainly for refis but also to buy houses at affordable prices.
Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms.
Plus we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
And guess what? Americans are actually SAVING again, the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.
There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.
You can ridicule small regional gains as statistically irrelevant, but here's an economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there … because all downcycles tail off and come to an end.
The smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year.
Written by Kenneth R. Harney
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