Daily Real Estate News  |  August 27, 2008

10 Cities Where Jobs, Home Prices Are Growing

To determine where home prices are expected to rise most in the next couple of years, Forbes.com looked at projections for housing starts from the National Association of Home Builders and job-growth projections from Moody’s Economy.com.

Forbes identified cities that are likely to be vibrant markets because jobs are increasing and the housing market wasn’t overbuilt during the boom.

"The logic is pretty straightforward," says Mark Zandi, chief economist at Moody's Economy.com. "People will spend as much on housing as their income will allow them. House prices are very closely tied to household income over the long run when you look at business cycles."

According to Forbes, these are the 10 cities where home prices are most likely to rise:

• Albuquerque, N.M.
• Charlotte, N.C.
• San Antonio, Texas
• Portland, Ore.
• Austin, Texas
• Salt Lake City, Utah
• Colorado Springs, Colo.
• Minneapolis
• Atlanta
• Oklahoma City

ALYESKA RESORT MOUNTAIN NEWS

ALYESKA RESORT ANNOUNCES NEW SKI AREA GENERAL MANAGER
Dianna Hiibner

For Immediate Release
August 29, 2008
Media Contact: Jason Lott – (907) 754-2211 – info@alyeskaresort.com

Girdwood, AK - August 29, 2008 Alyeska Resort Ski Area announced today the promotion of Dianna Hiibner to Ski Area General Manager.  Di is a life long Alaskan who will take over the responsibilities of Ski Area General Manager in October , replacing Rich Eidem, who is moving back to Wyoming to be close to his family. 

“I look forward to starting my new position as the Alyeska Ski Area General Manager and want to see Alyeska Resort reach its full potential. Alyeska Resort is committed to the residents of Alaska as well as working towards becoming a year round destination for tourists”, stated Di.

Di has over 20 years in the ski industry getting her start at Crested Butte working in their Ski School Department.  She has been a member of Alyeska Resort since 1994 working in every facet of the resort from lift operator to trail crew, ski patrol, snowmaker, mountain host and most recently Mountain Service Manager.  Di brings a youthful exuberance and passion for skiing that resonates to each department.  Her racing accomplishments include competing in the Junior and Senior Nordic National Championships and Arctic Winter Games.  Di lives in Girdwood with her husband of 13 years and two young children who are involved in the Educational system in Girdwood. 

Alyeska Resort, located 40 miles south of Anchorage, is Alaska’s premier year-round resort.  Tucked amid the Chugach Mountain, Alyeska Ski Resort offers world class skiing and snowboarding with stunning views of the Turnagain Arm.  The 1,400 acres of terrain with 2,500 feet of vertical rise, is serviced by nine lifts included a new beginner quad, 60 passenger aerial tram, and high speed quad.  Ski-in, ski-out access is available from the Hotel Alyeska which features 304 recently renovated guest rooms and meeting space, the luxurious Spa at Alyeska, five dining venues with fine dining at Seven Glaciers and Sakura & Sushi Bar restaurants, and a salt water mountain-view indoor heated pool and whirlpool spa.  For more information on packages, events and rates call Alyeska Resort at 1-800-880-3880 or visit www.alyeskaresort.com.

MOUNTAIN NEWS

Alyeska Resort is finalizing the over $3 million dollar lift upgrade for the Winter 2008-2009 season. 

Chairlift #3 is being replaced with a fixed grip quad chairlift manufactured by Dopelmayrctec. The new lift alignment places the unloading station halfway between the old top station and the top of lift #7. The bottom station has been moved closer to the Sitzmark deck. The new fixed grip high speed quad lift will provide greater uphill capacity while eliminating a large amount of stops per ride due to passenger loading and unloading.

Chairlift #7 is being modified to include a midway unloading station and a conveyor loading system at the bottom station. These improvements will allow better utilization of the terrain for lower level skiers and allow the lift to be operated at a higher speed than in the past.  Providing a more streamline access point for kids and adults accessing the beginner lift directly behind the Hotel Alyeska.  Alyeska Resort will provide guests learning the sport a much easier loading and unloading experience encouraging them to come again and again.

August 27, 2008
Happy Talk
Written by Jeff Thredgold, CSP, President, Thredgold Economic Associates

The “dismal science” of economics typically focuses on “bad” news. We clearly face significant challenges…no argument here. However, there are also many favorable developments taking place within the U.S. economy. This is our semi-annual update of “Happy Talk.”  This Tea Leaf focuses ONLY on the “good” news… 

•  The middle and lower-middle class had stronger income gains in 2007 than did the top one-fifth of households

•  For every dollar of U.S. economic output generated today, we burn less than half as much oil as 30 years ago

•  The number of illegal immigrants in the U.S. declined by an estimated 1.3 million (to 11.2 million) between August 2007 and May 2008.  Stronger enforcement and fewer job opportunities contributed to the decline

•  Keep this in mind during the election campaign…the Bush tax cuts led to an enormous surge in overall tax revenues in recent years. In addition, the top 1% of income earners paid 40% of all income taxes in 2006, the highest share in at least 40 years

•  Overall violent crime declined 1.4% in 2007 versus the prior year

•  Donations to charity set an all-time high in 2007, with more than $300 billion donated by individuals, foundations, and corporations. As a percentage of GDP, Americans gave twice as much as the next most charitable nation…England

•  Productivity of the average U.S. worker rose an average of 2.6% annually during the past 10 years, the largest gains in 40 years.  Rising productivity is a long-term key to higher standards of living

•  American household net worth at year-end 2007 was $57.7 trillion, near the highest ever, and three times the total of 18 years ago. Net worth—the difference between assets and liabilities—had risen for 19 consecutive quarters before declining during 2007’s fourth quarter 

•  The number of people who have quit smoking (46 million) now exceeds the number who still smoke (45 million).  Roughly 21% of adults smoke today, versus nearly half in the early 1950s

•  Men’s contribution to housework has doubled over the past 40 years, while their time spent on child care has tripled

•  Seat belt usage by Americans was at 82% in 2007, versus 49% in 1990 and 14% in 1983

•  Average U.S. life expectancy has reached 78 years (men 75, women 80), the highest ever.  This compares to 76 years in 1995, 68 years in 1950, and 47 years in 1900

•  U.S. exports to China have risen roughly 24% per year since 2001, making China the fastest growing market for U.S. goods

•  Air pollution declined 25% over the past 30 years even as the population and the economy grew.  Water quality also continues to improve.  More progress will occur in coming years as companies see rising value in “going green”

•  Children’s deaths from unintentional injury have dropped by almost 40% since 1987. Bicycle deaths fell 60%, while firearms-related deaths fell 72%

•  Toyota has developed a new fuel cell hybrid car that can travel more than twice the distance of its predecessor model

•  For the second time in two decades, the U.S. airline industry did not have a passenger fatality or major accident last year

•  U.S. exports of goods and services to the world are at record levels

•  Police officer deaths during 2008’s first six months were the lowest in 43 years

•  A year-end 2007 Gallup Poll noted that “more than 8 in 10 Americans say they are satisfied with their personal lives at this time, including a solid majority who say they are ‘very satisfied’”

•  Alcohol-related traffic fatalities in the most recently reported year dropped by more than half versus 20 years ago

•  The number of homeless people declined by an estimated 12% between 2005 and 2007, with an even larger decline in those who are chronically homeless

•  During the early 1960s, the five-year survival rate from cancer for Americans was one in three. Today it is two in three…continuing to climb…and the highest in the world

•  Traffic deaths per 100 million miles traveled last year were the lowest on record

•  The number of people without health insurance declined by 1.3 million to 45.7 million in 2007 versus the prior year

•  Childhood obesity, which rose sharply over the past two decades, appears to have stabilized

•  The American economy added eight million net additional jobs between 2004 and 2007.  Job losses averaging 66,000 monthly in 2008, while painful, are 64% fewer than average monthly losses during the 2001 recession

•  Substantiated cases of childhood sexual abuse have fallen 49% since 1990.  Physical abuse of children is down by 43%

•  More than three million girls participated in high school sports last year, part of a record 7.3 million total participants

•  The Federal Reserve aggressively reduced its key short-term interest rate seven times during the past year.  One result? Interest costs for millions of Americans have declined

•  Some 68.6% of the 2.7 million “Class of ’05” high school graduates enrolled in colleges and universities, the highest ever

•  The number of abortions performed in this country has declined by one-third since 1990 and is now at a record low

•  The U.S. rate of home ownership reached 69.2% of households in recent quarters, the highest ever, before declining slightly

•  The upward “mobility” of the typical American remains the greatest in the world. Why? The U.S. economy “rewards” the combination of hard work and educational achievement more than ever before…and more than any other country in the world

•  Women earned nearly 60% of all bachelor’s degrees awarded in recent years, versus 43% in 1970 and 24% in 1950. Women earned a similar share of master’s degrees

•  Median (half more, half less) household income rose 1.3% after inflation to $50,233 in 2007 versus the prior year

•  Illicit drug use among U.S. teenagers hit a five-year low of 9.8% in 2006, down 16% since 2002

•  The U.S. still accounts for roughly 40% of global research and development (R&D) spending

•  A record 29% of men have earned a bachelor’s degree or higher, versus 26% of women, also a record. This compares to a combined 7.7% in 1960.  A record 84.6% of adults over age 25 now have at least a high school diploma, versus 24.5% in 1940

•  U.S. teen pregnancy and birth rates plummeted to all-time lows in recent years, before a slight rise in 2006. The reasons? More widespread use of birth control, more work opportunities, and more girls who “just say no”

•  Flexible work schedules are now the norm for 43% of workers, up from 29% in 1992 and 13% in 1985. This allows greater flexibility for more people, especially those with children

•  Roughly 30% of trash was recycled or composted in the latest year, versus 16% in 1990

•  In 1967, only one family in 25 earned $100,000 or more (inflation adjusted to 2005). Today, one in six families does. The share of families earning more than $75,000 annually in real dollars has tripled from 9% to 27%, while the share of families earning between $5,000 and $50,000 in real dollars has fallen by 19% since 1967

•  Violent crime overall is down 55% since 1993, with violence by teens down 71%. School violence has declined by half from a decade ago

•  The U.S. role of dominance in the global economy in recent years has been as clear-cut as at any time since the 1950s

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Location, Location, Location

By Lawrence Yun, NAR Chief Economist

As we know from the REALTOR® mantra - location, location, and finally, location - matters a lot. Contract signings to buy homes (i.e., pending sales) rose significantly in Sacramento, Riverside, Las Vegas, Orlando, and other markets that experienced significant price reductions. This has been evident for the past several months. What is new is that we are now beginning to see year-over-year increases in affordable mid-America markets. Columbus, Oklahoma City, Colorado Springs, Charleston (WV), and Spartanburg are examples. Pending sales increases appear to be broadening.

On the opposite end, pending sales have weakened sharply from a year ago in the Pacific Northwest and Texas. These areas have the strongest employment conditions in the country. Dallas, for example, has gained 57,800 net new jobs in the past 12 months - essentially a stadium full of people with new jobs. Yet, pending sales are trending low in Dallas. Because of the strength of the job market, many homes in both Texas and the Pacific Northwest have not experienced price declines.

As with any monthly data, there will be bounces and noises in the statistical measurement. I am encouraged by the rise, particularly in the hard hit areas, but several more additional months of similar gains would be needed to assure that a firm recovery is taking place. I am also encouraged by some cases of multiple-bidding in San Diego and other markets where prices have plunged from just one year ago. The multi-bidding suggests that there are buyers out there and that we may be hitting a price floor in these markets.

The near-term outlook is for gains in actual closings at the settlement table. The housing stimulus package that was recently enacted will also be a factor in helping to raise sales and carry the momentum into 2009. Many home buyers will want to take advantage of the home buyer tax credit. Consumers who have been facing outrageously high interest rates on "jumbo" loans will also get a break because of the permanently higher loan limits for FHA and Fannie/Freddie backed mortgages.

But before celebrating too early, we should be mindful of the fact that the pending home sales data coverage is less robust than the closings measured in the existing-home sales figures. So the trend in closings may not show a direct one-to-one relationship to pending sales. Furthermore, with lenders scrutinizing every mortgage origination, some of the contracts may fall out at the last moment.

The longer-term forecast also contains many uncertainties. Despite some growth in economic output as measured by GDP, the job market is unusually soft. Recent stock market gains could be genuine signs for better economic times ahead or could simply be a "head-fake" for stock traders who love volatility. Mortgage rates are still at near historically favorable terms, but that could change for the better or worse depending upon how stubbornly inflation stays elevated. Another thing to watch for is foreigners' appetite for U.S. government and Fannie/Freddie bonds. Then there's oil - these days, always a wildcard. If the price of oil slides to less than $100 a barrel, then it is likely the U.S. economy would growth much faster.

As for the housing market forecast, I would say that given the unprecedented speedy price declines in those hard-hit markets, most of the price cuts have already occurred. There is better upside potential than down from this point onwards. Though the national home price forecast is important for lenders and other macro players as they need to evaluate the overall national portfolio, it means very little to consumers. With so much variation, consumers need to do their local homework - and so do local REALTORS® - to assess what may happen in their market.

Unfortunately, there is a downside for this forecast for homebuilders. They will need to cut back further on production, as it will take some time to absorb the still-high inventory of both new and existing homes. And an important note: yes, both housing starts and permits rose significantly in June - total starts were up 9.1 percent from May and permits rose by 11.6 percent. But a big part of those increases
was in the Northeast multifamily sector, most likely due to an unusually large number of permits issued for multifamily residential buildings in New York City - the result of new construction codes in the city effective July 1 of this year. If we discount the Northeast multifamily figures, permits were actually down 0.7 percent and starts decreased 4.0 percent. Housing starts are likely to decline through the middle of next year and then settle at around 800,000 units (compared to over 2 million during the boom years). Consequently, I anticipate further declines in new construction and new home sales into 2009.

For existing-home sales, I am more optimistic. Resales will likely rise in coming months, as the impact of the recently signed housing legislation is felt.

BLUEBERRY MUSIC AND MOUNTAIN ARTS FESTIVAL THIS SATURDAY, August 23rd from 11:00am to 7:00pm at the Alyeska Resort Pond Courtyard. Groove all day to live music from the Melissa Mitchell Band, Well Strung, The Carhartt Brother and more. Artisan craft booths will surround the courtyard with unique contemporary and traditional Alaskan crafts. Celebrate the Blueberry picking season with a homemade blueberry creations contest, Bar-B-Que, Beer and Wine Garden and an array of fresh blueberry desserts. Call (907) 754-2275 or visit Alyeska Resort Blueberry Music and Mountain Arts Festival for a complete music line-up, events schedule, booth information and contest details.

Tribune reporter Mary Umberger conducted a test in July to see which of 11 top real estate sites were rich in content and utility. She started by searching for homes, with specific criteria, in a Chicago suburb. Then she graded the experience.

In her findings, she ranked remax.com, Realtor.com and Trulia.com as the "top group." Several major competitors, including Century 21 and ZipRealty, ranked in the third tier due to "reasons that ranged from too few listings to too little detail."

Here's the first portion of Umberger's Aug. 10 article:

Even Among the Most Visited Realty Sites, Few Get 2 Thumbs Up for Utility

By Mary Umberger, Special to the Chicago Tribune

Last year, 84 percent of American home buyers used the Internet in shopping.

So says the National Association of Realtors. But what the trade group didn't say was how to go about it - more specifically where to start.

That's where we think we can help.

We took the most popular sites based on June visits, according to two firms that measure Internet traffic, for a test drive.

Over two days in July, we asked each of 11 chosen to run a hypothetical search for listings for three-bedroom, single-family homes in Berwyn, a suburb chosen at random. Their findings ranged from 53 to 487.

In general, some of the sites wowed us with maps, data and detailed listings and let us tailor our searches umpteen ways. Others seemed more focused on putting us into the hands of a real-estate agent or mortgage broker. Required registrations can be slow and pointedly nosey. Some buried useful tools behind "advanced search" links instead of displaying them out front. Some gave us lots of listings with little detail.

Because "utility" is totally subjective, we grouped our findings in three tiers, according to number of listings, how useful or novel the sites' features seemed to be and how much/how little personal information they wanted.

The top group - big numbers or lots of helpful information or both - are Realtor.com, Remax.com and Trulia.com. In the middle are ColdwellBanker.com, Homegain.com, Realestate.yahoo.com and Zillow.com. In the third tier - for reasons that ranged from too few listings to too little detail - are Century21.com, Homes.com, ZipRealty.com, and the real-estate pages of AOL.com and MSN.com.

Daily Real Estate News  |  August 15, 2008

10 Most Expensive States for Closing Costs

A slowing housing market isn’t stopping closing costs from rising, according to a study by Bankrate.com.

The 2007 average closing cost of $2,736 has gone up to an average of $3,118 in 2008, a 14 percent increase. New York City at $4,016 is the most expensive place to close. North Carolina is the least expensive area with an average fee of $2,650.

Here are the top 10 most expensive states to pay closing costs.

1. New York: $4,016
2. Texas: $3,975
3. Florida: $3,683
4. Oklahoma: $3,558
5. New Mexico: $3,465
6. New Jersey: $3,432
7. Pennsylvania: $3,411
8. Alaska: $3,409
9. Colorado: $3,358
10. California: $3,321

Home Buyers Acting On Lower Prices

Existing-home sales rose from the first quarter in 13 states, largely from buyers responding to discounted home prices, according to the latest quarterly survey by the NATIONAL ASSOCIATION OF REALTORS®.

Nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country.

In the second quarter, 35 out of 150 metropolitan statistical areas ¹ showed gains in median existing single-family home prices from the second quarter of last year, while 115 had price declines. NAR’s track of metro area home prices dates back to 1979.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said foreclosures are distorting the price data. “In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values,” Gaylord said. “Many buyers with long-term expectations are getting exceptional value in the current market. Once the inventory is drawn down, price pressure will return because the costs of construction are rising – today’s buyers are very well positioned to build wealth over time.”

A separate recent study by the National Bureau of Economic Research, “Housing Supply and Housing Bubbles,” shows construction costs in 2007 were higher than home prices in 33 out of 79 metro areas studied.

Because foreclosures and short sales are accounting for about one-third of transactions, there is a downward pull to the national median price. In the second quarter, the median existing single-family home price was $206,500, down 7.6 percent from the second quarter of 2007 when it was $223,500. The median price is where half of the homes sold for more and half sold for less.

A Closer Look

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 4.91 million units in the second quarter, down 0.8 percent from 4.95 million units in the first quarter, and were 16.3 percent below a 5.87 million-unit pace in the second quarter of 2007.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage rose to 6.09 percent in the second quarter from 5.88 percent in the first quarter; the rate was 6.37 percent in the second quarter of 2007.

Lawrence Yun, NAR chief economist, said a clear cause-and-effect response has developed in the housing market.

“The biggest home-sales gains over the previous quarter have been in some of the markets with the steepest and fastest price drops,” Yun said. Compared with the first quarter, existing-home sales increased 25.8 percent in California, 25.0 percent in Nevada, 20.5 percent in Arizona and 10.1 percent in Florida. “Buyers in these areas are responding to deeply discounted home prices.”

The largest sales gain during the second quarter was in Idaho, up 51.7 percent; Virginia sales rose 10.5 percent.

The steepest declines in single-family home prices in the second quarter were in the Sacramento-Arden-Arcade-Roseville area of California, where the median price of $229,500 dropped 35.6 percent from a year ago, followed by Cape Coral-Fort Myers, Fla., at $178,100, down 33.1 percent from the second quarter of 2007, and Riverside-San Bernardino-Ontario, Calif., where it dropped 32.7 percent to $265,200. “Each of these areas has seen a strong buyer response in recent months to the big cuts in home prices,” Yun said.
Sharp price declines, in excess of 20 percent, also were reported in the Los Angeles-Long Beach-Santa Ana area; the Anaheim-Santa Ana-Irvine, Calif., area; Las Vegas-Paradise; and Phoenix-Mesa-Scottsdale.

“Areas with affordable housing and healthy local economies continue to see price growth,” Yun said. In the second quarter, the largest single-family home price increase was in the Yakima, Wash., area, where the median price of $162,300 rose 8.9 percent from a year ago. Next was the Binghamton, N.Y., area, at $120,900, up 8.7 percent from the second quarter of 2007, followed by the Amarillo, Texas, area, where the second-quarter median price increased 7.2 percent to $124,600.

Yun said home price conditions reflect comparisons from 12 months ago. “Prices having fallen sharply and quickly in very distressed markets, but most or all of the price declines may have already occurred in these areas since buyers have now returned to those markets,” he said. “Furthermore, the momentum of buying is likely to continue in light of the housing stimulus package that was recently enacted. About 2.5 million first-time buyers are expected to take advantage of the $7,500 tax credit between now and the middle of next year.”

Median second-quarter metro area single-family home prices ranged from a very affordable $71,700 in the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, to nearly 11 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $755,000. The second most expensive area was San Francisco-Oakland-Fremont, at $684,900, followed by Honolulu at $636,000.

Other affordable markets include Elmira, N.Y., at $76,400, and the Saginaw-Saginaw Township North area of Michigan with a second-quarter median price of $80,300.

In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $220,000 in the second quarter, down 3.0 percent from $226,900 in the second quarter of 2007. Seventeen metros showed annual increases in the median condo price and 37 areas had price declines.

The strongest condo price increases were in the Syracuse, N.Y., area, where the second quarter price of $144,900 rose 17.8 percent from a year earlier, followed by the New Orleans-Metairie-Kenner area of Louisiana, at $192,100, up 15.9 percent, and the Houston-Baytown-Sugar Land area of Texas, where the median condo price of $141,100 rose 9.9 percent from the second quarter of 2007. Areas where condo prices declined mirrored the pattern seen with single-family homes.

Metro area median existing-condo prices in the second quarter ranged from $107,500 in the Wichita, Kan., area to $523,500 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Honolulu at $330,000, followed by Los Angeles-Long Beach-Santa Ana at $327,800.

Other affordable condo markets include Greensboro-High Point, N.C., at $109,600 in the second quarter, and the Indianapolis area at $113,500.

Across the Region

Northeast: The median existing single-family home price fell 9.6 percent to $269,000 in the second quarter from the same period in 2007. After Binghamton, the strongest price increase in the Northeast was in Elmira, N.Y., up 6.6 percent from the second quarter of 2007, followed by Buffalo-Niagara Falls, N.Y., with a median price of $108,200, up 4.7 percent.

Midwest: The median existing single-family home price in the Midwest declined 0.9 percent to $161,500 in the second quarter from the same period in 2007. The strongest metro price increases in the Midwest were in the Decatur, Ill., area, where the median price of $94,200 was 6 percent higher than a year ago, and Des Moines, Iowa, at $156,600, also up 6.0 percent, followed by Peoria, Ill., at $124,800, up 3.7 percent from the second quarter of 2007.

South: The median existing single-family home price was $177,000 in the second quarter, down 4.1 percent from a year earlier. After Amarillo, the strongest price increase in the South was in the Charleston, W.V., area, at $136,600, up 7.1 percent from a year ago, followed by Corpus Christi, Texas, with a 6.2 percent gain to $144,400, and Greenville, S.C., at $160,300, up 5.1 percent.

West: The median existing single-family home price was $290,600 in the second quarter, which is 17.4 percent below a year ago. After Yakima, the strongest metro price increase in the West was in the Salt Lake City area, at $234,200, up 0.5 percent from a year ago; all other metro areas reported for the West were down from the second quarter of 2007.

Source: NAR

• South: jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007.
• West: rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago.
• Northeast: increased 3.4 percent to 79.6 but is 15.4 percent below June 2007.
• Midwest: rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.

• Mortgage rates. The 30-year fixed-rate mortgage, which also has been vacillating, is likely to trend up to 6.5 percent by the end of 2008, and then hold at that level for most of next year. NAR’s housing affordability index is forecast to remain favorable this year, averaging 13 percentage points higher than in 2007.

• GDP. Growth in the U.S. gross domestic product (GDP) is expected to be 1.7 percent this year and 1.5 percent in 2009. The unemployment rate is projected to average 5.5 percent in 2008 and 6.0 percent next year.

• Inflation. As measured by the Consumer Price Index, inflation is seen at 4.1 percent in 2008 and 2.6 percent next year. Inflation-adjusted disposable personal income is estimated to grow 1.7 percent this year and 1.1 percent in 2009.

Click here for an interesting commentary on the so called "housing crisis" by Dennis Kneale of CNBC.

I know it has been cold this summer, but at least it has been fairly dry.  The Winner Creek Trail has been in better condition this year than the last couple of years.  Sharnee and I were able to steal some time away recently for a ride.

Sharnee and I had the opportunity to celebrate our fifteen year anniversary last week with a camping trip at the Primrose campground and a mountain bike ride to Lost Lake.

Daily Real Estate News  |  July 30, 2008

President Signs Housing Rescue Bill

President George W. Bush signed into law a bipartisan housing stimulus bill Wednesday that is expected to bring greater stability to housing markets nationwide.

The bill, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, will help some 400,000 home owners refinance into affordable, government backed loans and offer a temporary first-time home buyer tax credit, which is expected to serve as an attractive incentive to buyers and help reduce high inventories of unsold homes.

The temporary first-time home buyer tax credit would offer $7,500 for the purchase of any home and an be used for purchases between April 9, 2008, and July 1, 2009.

The bill — H.R. 3221, the Housing and Economic Recovery Act of 2008 — also includes reform of Fannie Mae and Freddie Mac, FHA modernization, and permanent increases in conforming and FHA loan limits.

"These are all designed to help the housing and mortgage industries and boost the U.S. economy," NAR President Dick Gaylord said in a statement. “NAR has been a leading advocate for many of these changes long before the current housing and economic downturn. We are pleased that the president and Congress worked together to enact meaningful legislation that protects and enables families in this country to continue to strive for and enjoy the dream of homeownership.”

Source: NAR, Associated Press (7/30/08)