Call it the temporary tax credit that just won’t end.
Congress approved late Wednesday an extension to the June 30 closing deadline for the home buyer tax credit, hours before it was set to expire. The move will give would-be buyers who signed a purchase agreement by April 30 more time to close on those deals and receive the credit that is worth up to $8,000. The new deadline is Sept. 30.
Remember those people before the housing market meltdown who’d fix up homes then sell them for a quick profit aka “Flippers?” “Improbable as it sounds, house flipping- that hallmark of American real estate mania- is making a comeback” says Bloomberg Businessweek.
All around the country, especially in areas hardest hit by foreclosures, investors are swooping in to take the distressed properties off the banks’ hands to bang them into shape for different types of buyers. This type of activity can be measured by how many times the property has changed hands within the last six months. In some areas hardest hit, there is an increase of 81% in states like Arizona and Florida. continue reading…
Signs that brighter days are upon us: Home Depot is hiring after their Q4 profits were up in 2009. “As you have positive transaction growth, you need more associates to handle that in the stores. We are going to lean into our skis a little bit.” This is what Chairman and CEO Frank Blake said in an interview with Bloomberg News. This means the first increase in profit since 2006 (when HD placed a hiring freeze). People working on their homes is good for the economy.
The recession is fading. Consumers belts begin to loosen. Americans go shopping. Never underestimate the willingness of Americans to spend. It’s just what we do. Department store Saks is ”moving from defense to offense,” selectively rebuilding inventory and increasing investment as consumers ”come out of their shell,” says CEO Stephen Sadove. continue reading…
Two chief economists at Forbes magazine give us 5 Reasons there will be no Double-Dip for the U.S. economy.
First, recognize that while the Fed has stopped buying mortgage- backed securities, it is not planning on suddenly selling its holdings. Most likely, the Fed will hang onto the vast bulk of them for at least several years and allow the natural process of refinancing and principal repayment to gradually reduce the size of its portfolio.
Second, we do not expect mortgage rates to suddenly spike as the Fed exits the market. In addition, many have said to expect a spike in rates……well, we just haven’t seen it. continue reading…
