My New Blog

     This is late in coming but it's been a busy first 2 weeks of the year. I don't know if's in anticipation of the upcoming vote for property tax reform but inquiries and showings from out of area buyers has shot up i the last month. December and January are traditionally slow months for sales but this has been anything but a traditional selling season.

     Interest rates continue to fall based on job growth for December, good news for those who have made a decision on a property. With prices lower for a lot of properties in great areas now is the time to buy. With the Fed probably lowering the overnight rate at their next meeting it will ease the adjustments for those stuck with ARM's (and high credit debt) but can have the opposite effect on long term mortgages. What good is waiting for a rock bottom price if it costs you more to borrow? Where is the victory?

     On a final note, the amendment to save our homes with the portability attachment will, if passed, be the nail to end the subsidy. I for one would like to see real tax reform, scrap the homestead exemption, and shift to broader based taxes and the elimination of rediculous sales tax exemptions. We will no longer be the retirement destination of choice if no one can afford tolive here. The same goes for business that won't invest in manufacturing or any other property intensive industry because of the punitive tax burden. Low wages and no income tax is not an incentive for them. The state and local governments need to realize this. Retirees on fixed incomes won't contribute enough to the system to support high wage jobs. It's time to rethink policy here.

     Ben Bernacke and co. startled the financial world by dropping 3/4 of a percent for both key rates. It's not that it was unexpected, but shouts volumes as to how bad the perception of the monetary situation really is to do it a week ahead of the monthly meeting. AND you can expect another 1/4 point then too.

     Unilke Vegas, what happens here roils through the world economy since many foreign investors (largely governments) bought the bundled securities.

     What's that mean to you? WELLLLLL, if you have an ARM about to adjust it just won't go as high (and hopefully keep you in the home) and your credit card debt gets a little cheaper. On the flip side, historically 30 year fixed rates generally rise. For those with the cash and credit NOW really is the time to buy.

     Barring a catastrophe, house prices have come down to near bottom, with maybe a few percent left (land and replacement cost can only go so low). For a long term investment the tradeoff of cheaper money outweighs the mental victory of getting a property a few grand less. Of course that's just my opinion.