I was just reading an Article in the PilotOnline entitled, “Fed expected to cut rates for 2nd time”, which talks about the possibility of the Federal Reserve cutting interest rates for the second time in as many months.
After cutting interest rates by a half of a point in September, Federal Reserve Chairman Ben Bernanke met with colleagues this week to discuss the possibility of cutting interest rates by another quarter point. This comes in the face of rising oil prices and a sluggish housing market. It is an effort to help strengthen a weakening economy in the hopes of stemming further economic turmoil. Numerous analysts predict this will not be the last cut by the Feds in their quest to help the economy through these current obstacles. This cut in the federal funds rate that banks charge each other allows banks to cut their prime lending rate, which will cut consumer and business loans by a half point.
While the economy suffers from the worst slump in housing markets in over 20 years and oil prices soar to over $90 a barrel, this interest rate cut can go a long way towards helping get our economy back on its feet. The feds are gambling on the fact that these cuts will also help stimulate consumer spending which has tapered off in the last few years due to reduced consumer confidence. These cuts should also help to reassure investors by helping to reduce defaults on sub prime mortgages.
With analysts placing the chances of a recession around 40% and the fact that every downturn in the housing market in the last sixty years, except two, have led to recessions, the Fed is expected to cut rates further during their year-end meeting in December or January.
Let us keep our fingers crossed that this is not too little nor too late.
One of the great things about real estate in the Hampton roads area is the availability of wonderful waterfront homes. However, far too often, people forget one of the most important things when it comes to buying a property on the water, the bulkhead, dock or seawall. These structures have to withstand some of the heavies loads of any structures built these days. They have to provide for subsurface drainage as well as withstand extreme weather and corrosive saltwater in some cases. Do not buy a waterfront property without first having a home inspection performed that includes the Bulkhead, dock or seawall. I repeat, DO NOT buy a waterfront home before seeing an inspection on these important structures.
If this is your first time purchasing a home on the water, it is especially important that you find out as much as you can about these structures and hire a recognized and licensed inspector to make sure everything is structurally sound before you buy. Not many of know enough about these important structures so it is important for those buying a home on the water to make sure they have hired a professional who does.
If you are selling your waterfront home, you can help take this hassle out of the equation by having a pre-listing inspection of your bulkhead, dock, retaining wall or seawall. This will help facilitate the process and will show the prospective homebuyer that you are not trying to hide any structural issues.
Edinburgh Meadows – The Riviera
Those looking for their exclusive luxury dream home will definitely not want to miss this year’s edition of Homearama. Click to read “Homearama ’07 ready to showcase in Chesapeake’s Edinburgh”, an article about this annual residential showcase sponsored by the Tidewater Builders Association from September 29 to October 14. This year, the 26th annual Homearama home show will be held amidst the ample lots and large lakes of Edinburgh Meadows and promises to be the most ambitious of the yearly home shows ever. There will be seventeen fully landscaped and decorated luxury homes with average prices of 1.1 million on display for buyers to view. The price of admission will be $10. These are some of the most expensive homes ever to be on display at this annual residential showcase. Thirteen of these beautiful homes have already been sold and one buyer has pre-contracted the “Crown Jewel” of the show, a 9,500 square foot mansion. Architectural styles of these homes range from French country to traditional ranch and home sizes range from 3,500 square feet to a whopping 9,500 square feet.
Speaking about the demand for luxury housing in Chesapeake’s rural south, Preston Fussel of Edinburgh developers said, “The market here doesn’t appear to be any better or any worse over economic conditions,” said Fussell, noting the high prices for the properties.” There are two shopping centers nearby and a third, which will feature a Super Wal-mart, is in the planning stages. Click to read this article in HamtonRoads.com.
If you are looking for a luxury home in rural south Chesapeake, this year’s Homearama home showcase in Edinburgh meadows may just be the place where you find the home of your dreams.