Dim Forecast for Housing and Economy
ResiLandscape report, issued by analysts at Moody’s Investors Service warn that there’s a change the country will slide back into a recession, and they forecast a “longer and deeper housing correction.”
The chief economist for Moody’s Analytics said “We have lowered the near-term economic outlook and raised the risk of a double-dip recession from one in four to one in three.”
He also says the US recovery has lost significant momentum since the spring. Retailing, housing, business investment, and industrial activity have all weakened, and the job market is no longer improving. After ticking higher to 9.6% in August, he is expecting the nation’s unemployment rate to drift back into double digits in the coming months.
Celia Chen, senior director for Moody’s Analytics expects house prices to fall until the 3rd quarter of 2011, significantly longer than Moody’s previous projections of a 1st quarter 2011 bottom in homes. She says the flood of 4 million homes either in late-stage delinquency or foreclosure is clogging the foreclosure pipeline from the servicers to the courtrooms, creating delays.
Distortions due to the first time homebuyer tax credits previously offered are partially to blame for the expected double-dip.
Preparing your Home for the Fall Season
- Make Sure there are working nightlights at the top and bottom of all stairs
- Check all window and door locks for proper operation
- Have a heating professional check your heating system every year
- Replace your furnace filter
- Run all gas-powered lawn equipment until the fuel tank is empty
- Have a certified chimney sweep inspect and clean the flues and check your fireplace damper
- Remove bird nests from chimney flues and outdoor electrical fixtures
- Make sure caulking around doors and windows is adequate to reduce heat/cooling loss
Brought to you by RISMEDIA and sponsored by Lowe’s http://rismedia.com/lowes/null/10112
77% Live Paycheck to Paycheck
As the recession lingers on workers are really feeling it in their pocket. Nearly eight-in- ten (77%) of workers in 2010 said they felt they lived paycheck to paycheck to make ends meet, up from 61% in 2009. One-in-five (22%) said they have missed payments on bills in the last year in a survey conducted by Career Builder between May and June, 2010.
Some workers are making ends meet by dipping into their long-terms savings. More than one-in-five (21%) say they have reduced their 401(k) contributions or savings to get by; while 33% state they do not participate in any programs such as 401(k), IRA or retirement plans. 30% also reported they don’t put any money aside into their savings each month while 28% set aside $100 or less for savings and 14% save less than $50.
As a result some workers said they have made changes to their living and spending habits as follows:
- Cut back on leisure activities – 54%
- Used coupons or shopped at discount stores – 48%
- Drove less to save on gas – 37%
- Cancelled cable and other subscriptions – 12%
- Used public transportation – 5%
This survey found that six-in-ten felt that the recession has made them more fiscally responsible.
5 Tips for Fall Lawn, Tree and Shrub Care to Prep for Spring
With fall around the corner, it’s time to start thinking about preparing your lawn for the winter months. According to TruGreen, here are five tips for homeowners to prepare their lawns for spring’s growth.
ASSESS
Inspect your lawn, trees and shrubs. Identify problem areas in need of pruning, replacement or treatment. Note area where grass has thinned out or is in need of nutrients which appears as light green. Also look for pest and weed infestation and overgrown shrubs and trees
AERATE & PRUNE
Help your lawn breathe through fall core aeration to strengthen roots and prepare for spring. Conduct corrective pruning of trees and shrubs to enhance plant appearance and thin rather than top-shear overgrown shrubs and flowering trees to preserve their shape.
REPLACE
Fall is the ideal time for successful seeding of bare lawn areas and over seeding of healthy grass to improve lawn thickness and density. Replace dead or floundering plants in fall for a healthier landscape and improved curb appeal in spring.
MOW & MULCH
Mow your lawn into the fall and avoid removing more than one-third of the leaf blades with each cut. Return grass clippings and back to the sol for added lawn nutrients and use tree leaf compost to nourish plants.
FEED
Feeding your lawn gives grass roots, trees and shrubs the energy needed to prepare for a healthy spring revival. Keep fertilizer on target to prevent run-off and seep fertilizer granules that may reach pavement back onto your lawn.
Mortgage Interest Deduction
We have heard rumors that the Obama administration has discussed the possibility of getting rid of the Mortgage Interest Deduction (MID). “Say it ain’t so, Joe”.
According to the USA Today, the government spent about $80 billion last year to back up the mortgage interest deductions. One housing specialist says it wasn’t worth the money because the tax break only goes to the wealthy???? Does this sound familiar?
Home owners already pay 80 to 90 percent of the income tax in our country, and among those who claim the MID, almost two-thirds are middle-income earners.
The national taxpayers union tells us nearly 39 million people claimed the mortgage deduction. (Nearly 67% of Americans own homes).
For those in the $100,000 – $200,000 income range the MID claimed was almost $14,000; meaning the value of the write-off would be $3,500
For those making $75,000 – $100,000, the deduction was around $11,000; resulting in a savings of $2,800
For those making $50,000 – $75,000, the average deductions was around $10,000 with a savings of $2,500.00
Through the terms of 17 presidencies, the MID has brought remarkable stability to the housing market.
