Hi Everyone,
I wanted to share this excerpt from an article I read on housing values - I think those of you who have been fearing that you will never see value in your home again will take great comfort in this expert's opinion:
Rismedia: Feb 20, 2009Commentary: House Prices Will Rise Greatly over the Next Few Years, Buy Now
..."when the money supply is increased by an amount equivalent to 20 or 30% of Gross Domestic Product or more-naturally or unnaturally, inflation must result. That means that prices of all fixed assets rise to keep pace with the devaluation of the currency...Now, what is going to happen to home prices over the next few years?
... a side effect to saving America’s economy will be a robust increase in inflation. I believe that Inflation will regain all the “value” we lost in housing over the past two years, and that it will regain it in five years or less. Simply put, to put the brakes on inflation, government must inhibit the recovery. The people in power aren’t going to do that. Inflation is a necessary evil compared to a full scale depression and an acceptable trade off for most of us. (And oil won’t stay at about $40 a barrel too long, either!)
So tell your clients the truth: Interest rates will never be this low again in their lifetimes. Home prices won’t be this low again in their lifetimes. This is the perfect storm economically, but it also the perfect time to buy a home; provided that you buy it as a home and not a piggy bank. It’s just a nice side benefit that five years from now, the home you bought today will have appreciated so much that you’ll be thinking (just like I did in 1979): “What a smart investor I am!”
About the Author: Mike Parker specializes in online marketing services for Realtors® and real estate professionals.
I hope that makes you feel a bit more positive about the future. Let me now what you think. And incidentally, I rebuilt my website at www.LAhomesite.com - I'd love your feedback. Thanks!
Thursday, February 26, 2009
Thursday, February 19, 2009
Hi Friends,
I just wanted to pass on the most recent information regarding the new legislation being pased regarding taxes and housing tax credits. James Liptak, President of the California Association of Realtors, reports the following in our most recent C.A.R. newsletter:
"Following several months of debate and delays, our state representatives in Sacramento delivered a 2009-2010 budget to Governor Schwarzenegger today. The governor is expected to sign the budget as presented. Although details are sketchy, the budget appears to raise existing sales tax levels by 1 percent, and places a 0.25-percent income tax increase across the board. Under provisions included in the new budget, the vehicle license fee will increase from 0.65 percent to 1.15 percent of a vehicle’s value.
The budget also includes: a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010; and a 90-day additional delay in foreclosure sales, intended to force lenders to implement a proactive workout program that rewrites loans in default."
As you know, we cannot count on the media to report in a timely manner, as it took them almost a year to acknowledge that we had been in a recession for at least a year. It would not behoove buyers and sellers to wait fot the media to finally report a Recovery, as by then the window of opportunity for sales and purchases would be closed. Recent predictions across the board are for an increase in interest rates, and for Recovery in 2010. The number of foreclosures held steady or fell in number this month (depending on the area) - a positive indicator; and the Stimulus plan is intended to reduce foreclosure activity, which should further stabilize prices. Thus, if you are considering any kind of real estate transaction, economic indicators suggest that you move soon while we are still at a market low. By the time you hear the news that we are out of the hole, you will have to pay more for the same deal. I will pass on more news as it is released. Call or email me if you like to peruse charts and graphs and I will get some to you immediately. Wishing you all health, security and prosperity in these tough, but opportunity rich times.
I just wanted to pass on the most recent information regarding the new legislation being pased regarding taxes and housing tax credits. James Liptak, President of the California Association of Realtors, reports the following in our most recent C.A.R. newsletter:
"Following several months of debate and delays, our state representatives in Sacramento delivered a 2009-2010 budget to Governor Schwarzenegger today. The governor is expected to sign the budget as presented. Although details are sketchy, the budget appears to raise existing sales tax levels by 1 percent, and places a 0.25-percent income tax increase across the board. Under provisions included in the new budget, the vehicle license fee will increase from 0.65 percent to 1.15 percent of a vehicle’s value.
The budget also includes: a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010; and a 90-day additional delay in foreclosure sales, intended to force lenders to implement a proactive workout program that rewrites loans in default."
As you know, we cannot count on the media to report in a timely manner, as it took them almost a year to acknowledge that we had been in a recession for at least a year. It would not behoove buyers and sellers to wait fot the media to finally report a Recovery, as by then the window of opportunity for sales and purchases would be closed. Recent predictions across the board are for an increase in interest rates, and for Recovery in 2010. The number of foreclosures held steady or fell in number this month (depending on the area) - a positive indicator; and the Stimulus plan is intended to reduce foreclosure activity, which should further stabilize prices. Thus, if you are considering any kind of real estate transaction, economic indicators suggest that you move soon while we are still at a market low. By the time you hear the news that we are out of the hole, you will have to pay more for the same deal. I will pass on more news as it is released. Call or email me if you like to peruse charts and graphs and I will get some to you immediately. Wishing you all health, security and prosperity in these tough, but opportunity rich times.
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