It's a Mixed Bag of Tricks

It’s a mixed bag of tricks as far as the economy goes. I reported earlier that GDP grew by 3.5% this past quarter, causing CNN to declare the economy back in gear.

Qualified Remodeler reports today in its Weekly Remodeling Market Overview that new home sales fell in September most likely due to the upcoming expiration of the $8000 first time homebuyer credit. That ends 5 consecutive months of increases in new home sales.

On the other hand, existing home sales are running at a brisk pace, again most likely because of the homebuyer tax credit. The credit expires on November 30, 2009. Buyers must have closed on the home by that date. It makes sense. Unless it’s a spec home, a new home would not be ready in time to take advantage of the expiring credit. And we all know there are not many spec homes around.

There has been some talk of extending the tax credit for one year. Another idea is to expand the credit to include all home buyers.

Home sales fueled the prior economic expansion and, in many ways, directly contributed to the current recession. Does it make sense that housing needs to recover first before the entire country can recover? That’s an interesting question to ponder.

Economy finally back in gear . . . according to CNN

Great news today! According to CNN, "Government says GDP grew 3.5% in third quarter, ending a year-long string of declines and coming in better than forecasts."

Read the entire article here.

I know that we are seeing more activity in our own local remodeling business. Sales are up in both September and October. More calls coming through. And people are thinking about doing more than just repairs.

For those who have continued to market through the downturn, you are in the right place at the right time. For those who haven't, you've got alot of catching up to do.

Regards,
Annette