Jeff Craig Broker, Realtor, CSP

Not the news we would like to hear, especially for new home builders.

Sales of new homes dropped unexpectedly last month as the effects of a soon-to-expire tax credit for first-time owners started to wane.

The Commerce Department says sales fell 3.6 percent to a seasonally adjusted annual rate of 402,000 from a downwardly revised 417,000 in August. Economists surveyed by Thomson Reuters had expected a pace of 440,000.

It was the first decline since March. Sales in September were down 7.8 percent from a year ago.

The median sales price of $204,800 was off 9.1 percent from $225,200 a year earlier, but up 2.5 percent from August's level of $199,900.

Wordless Wednesday. A beautifull evening over the Gulf Coast of Florida.

Wish I was sitting there on the beach right now!

I've seen the trickle down effect. As a builder's rep, I have seen the effect of the recession first hand. Sales have been down considerably in the last year. Many of our competitors have gone under. Many of the local sub-contractors have closed shop. There just isn't enough construction work for all to survive. It's truly a shame. Good, hard-working people, just trying to make a living, feed their families and put a roof over their heads have lost everything.

This past weekend, I worked with some new potential home buyers. One worked for a local retail furniture sales firm. It's a very large company, that's been in the area for many years. Although the couple is looking at homes, they are very hesitant to make a move for two reasons. First, they have a home to sell and are concerned that it may remain on the market for a very long time. Also, furniture sales have plummeted because homes are not selling. So, the poor economy and in particular, the housing slump has effected this couple and many like them.

Those that stay in home construction, struggle on and hope they can make it through to the bright side. But, when will it come? Many in home construction and real estate sales saw a glimmer of hope, with the $8,000 tax credit to first time home buyers. It did help for some and bumped housing figures for several months. But, it didn't help enough or those selling upper end homes, especially above $300,000.

Now, there are two bills in congress that would extend the tax credit. One would extend to first time buyers only and end next March. The other would extend the credit to all buyers and extend it through June of 2010. Anything is better than nothing, but both fall short of what is needed to truly bring housing back to a level that would put all the American people back to work, who were in this industry. We need more and we need it now. Make your voices heard and bring housing back.

Good news/Bad news...depends on how you look at it and your part of the country.

Home prices rose for the third straight month in August, data Tuesday showed, a key sign for a broad and sustained housing recovery.

The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1 percent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 percent from August a year ago, the annual declines have slowed since February.

Prices are at levels not seen since August 2003 and have fallen almost 30 percent from the peak in May 2006.

The latest index shows a widespread turnaround with prices rising month-over-month in 15 metro areas since June.

"If the increases are consistent across the markets, this is key," said Wharton School real estate ProfessorSusan Wachter before the index was released. "Then we're seeing the formation of a bottom."

However, Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales.

First-time homebuyers can receive a credit of 10 percent of the sales price, up to $8,000. The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.

Not all metros posted gains in August, though. Prices in Las Vegas, Seattle and Charlotte, N.C., all fell to their lowest levels in August. Prices in Las Vegas have plunged by 56 percent since peaking in April 2006, the largest peak-to-trough decline of all 20 cities.

Wow, look what I found at my house while prepping to sell this past weekend. Granted the list isn't exhaustive, but we felt a liitle like buried treasure hunters.

1.A buffalo nickle.

2.A family of six black widows. Umm, they couldn't stay though.

3.My Jr. High School yearbook. My nick name was Ringo...my wife asked why.

4.Parts to the last three vacuum cleaners we owned.

5.Completely eaten Indian Corn.

6.One of about fifty missing socks.

7.Six power adapters that we have no idea what they are for.

8.A few t-shirts that last fit me in 1978.

9.Some old magazines that weren't exactly family friendly. They were for the articles!

10.Negatives of people I don't recognize.

11.That marksmanship award I got at camp when I was 8. Why was my wife laughing so hard?

12.A ball cap with very clear tiny teethmarks in it. Mouse, chipmunk, Gary Coleman?

13.Jimmy Hoffa......no comment.

It's good to purge!