February 2009

So you think you have it tough? There are currently 192 homes listed for sale in North Fulton County that are east of GA 400. Only one of them has gone under contract since December 16, 2008 according to the first Multiple Listing Service. That is not a slow market, that is a non-existent market.  At that pace it would take over 30 years to sell all of these homes. For comparisons sake, at this point in 2006 there had been 21 sales for homes listed above $800,000, 18 sales in 2007 and 14 last year as of this date in February.   So what is going on here? There have been big changes in the mortgage market that provides the jumbo loans usually necessary to finance these fine homes. Many lenders left this market and the ones that continue to serve this…

The so called "American Recovery and Reinvestment Act" (don't you just love the names they come up with for legislation?) also known as the Economic Stimulus Bill passed both the House and Senate yesterday and now awaits Presidents Obama's signature.  He undoubtedly will sign it next week. The housing stimulus proposal that Georgia Senator Johnny Isakson put forth was included in the final bill but altered substantially from his vision and recommendations.  According to the National Association of Realtors, the housing stimulus in the final legislation is summarized as follows:

• $8000 tax credit -  to reduce the home buyer's income tax obligation - any unused portion will be refunded in the form of a check
• Available to a first time home buyer

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It seems that the housing stimulus proposal that Johnny Isakson's was able to get added in the Senate stimulus bill was scaled back significantly in the conference committee. The latest information indicates that a home purchased as a primary residence before the end of August 2009 will qualify the buyer for a $8000 tax credit. I will be sure to stay on top of this story and let you know if it actually gets signed into law.  All the best,  Jeff

Things are moving fast in Washington so I thought I would update my blog from yesterday. The legislation that Senator Isakson proposed for a housing market stimulus has been included in the Senate stimulus (spending) bill as of last night. Before I go off on another rant I just wanted to say thank you to Senator Isakson's staff for being so helpful. I called his Washington D.C. office to get some information straight from the source. I spoke to James Bostic (one of his aides) in Washington and Andrew from his GA office. They were both very polite and responsive. They both informed me that Senator Isakson has not decided at this point if he will be supporting the stimulus bill that now includes his housing proposal. Frankly I am doubtful that he will…

It appears Georgia Senator Johnny Isakson does not believe in free markets and limited government.  I read few news articles about the housing proposal that he is trying to push into the latest stimulus bill at a cost of $20 billion dollars.  To quote a recent article: "Specifically, Isakson’s Fix Housing First Homebuyer Tax Credit legislation would also enhance the existing homebuyer tax credit by:

• Extending the eligibility period for the credit to December 31, 2009;
• Increasing the credit amount to 10 percent  of the home price capped at 3.5 percent of FHA loan limits (geographically dependent) – ranging between approximately $10,000 and $22,000;
• “Monetizing” the credit so it is available at time of closing; and
• Allowing the credit to be

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