HAPPY NEW YEAR! Congratulations to Augusta, GA/SC
Reports by the Associated Press and figures compiled locally indicate that we ended the year 2009 on a stronger economic lever than the same period of 2008. Numerous reports are reflecting a healthier economy on the national level as well as on the local level, indicating we are on the way to recovery. According to the SC 2009 Housing Market Report, SC has shown a relatively stable market, experiencing house price appreciation thru 2009.
BusinessWeek.com teamed up with MoodysEconomy.com to identify metro regions across the U.S. who should experience job growth in the first quarter of 2010. Augusta, GA ranked in the top 25. On the same line, according to Dec., 2009 Metro Monitor, Augusta, GA/SC ranked #23 among America's 100 largest metro areas in regard to economic recovery. Quoting Deke Copenhaver, Dec. 2009, "The positive recognition at the national level, coupled with the ongoing investment in our local economy and the recent approval of the Tee Center & the Laney-Bethlehem Redevelopment Initiative (as well as the $25M hotel project that will coming along with it), certainly should help us all have a great deal of positive anticipation as we move into 2010.
In an Augusta Chronicle report, Dec., 2009, it states The Brookings Institution examined employment, unemployment, home prices and foreclosure rates thru the third quarter of 2009 in top metro areas. Augusta faired the best in employment and foreclosure rates in those areas. Augusta had 1.69 bank owned foreclosures for every 1,000 households. The metro average is 4.32 homes lost to foreclosure for every 1,000 households.
Taking a closer look at the Augusta Real Estate Market, the December Real Estate Report shows a strong recovery for the new construction market. New Construction home closings have rebounded significantly—just short of June 2006. The active inventory is up as well as sales. Sales in November were up 36% from October. Current listing activity and median list price are reflective of a stabilizing market.
The Augusta resale market shows a 7% increase in sales from Oct. to Nov. which is up significantly from 2008. The median list price is down 6%, which may be a result of the absorption of foreclosures in the market. I believe we are going to experience a continuous rise as we move into the second quarter of 2010, as February thru June has traditionally been out climb in the mortgage market to peek in June/July; particular with the help of the tax credits.
I expect the extension of the first-time homebuyer's tax credit along with the long-time homebuyer's tax credit will continue to boost the economic growth through Spring, 2010. But, what will the economic picture be like after July 30, 2010, the deadline to close on all mortgage loans utilizing the tax credits? Are we now positioned to move at a pace that will continually move us in a upward pace? Are these two tax credits enough to keep us from going back in an economic slump?