Fears about the economy led to a stock market decline and pushed mortgage rates a little lower during the week. Even with Tuesday’s passage of the new $787 billion stimulus plan, economic growth forecasts from Wall Street economists and from the Fed were revised lower.

Wednesday, President Obama announced the $275 billion Homeowner Stability Initiative, which contained broad outlines of three major elements intended to help prevent foreclosures and falling home values. First, the government will make it easier for many borrowers who currently may not be able to refinance their loans to refinance. Only existing owner-occupied loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible for consideration under the plan. The government estimates that 4 to 5 million borrowers will be eligible for this program. Details regarding qualification and procedures for this refinance program are expected to be released in coming weeks.

Second, the government will increase its commitment to Fannie Mae and Freddie Mac from $200 billion to $400 billion and will raise the portfolio size limits for the two firms by $50 billion each. In addition, the government pledged to continue to support purchases of mortgage-backed securities to help keep mortgage rates low.

The third program provides incentives for servicers to work with borrowers at imminent risk of default to modify the terms of the mortgage, bringing payments down to affordable levels. If successful, the government hopes to prevent an estimated 2 to 3 million foreclosures, which would keep these homes from adding to the inventories currently on the market.

If you would like to find out more, please feel free to call Andy Hodes, he would be happy to speak with you regarding the Chattanooga Housing Market.  Andy can be reached at 423-664-1818.

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So, here we are in towards the end of January and my wife calls me this afternoon on my cell phone to let me know that she has turned off the heat in the house and opened all of our windows.  We are enjoying a day of warm weather in Chattanooga.  The past week we have all been bundled up and freezing, today we can thaw out, if only for a day.

Just in case you are thinking about moving to Chattanooga in the near future and plan on buying a home here, I wanted to share with you a chart about the weather in Chattanooga during the entire year.  The Chattanooga area really is a wonderful place to live, with four great seasons.

Our temperature gauge at home read 60 degrees this afternoon, and if the sun would have been out it could have been warmer.  What a wonderful suprise to escape the 20’s to 30’s if only for a day.

For more information on the weather conditions in Chattanooga or the Real Estate Market conditions in Chattanooga, please feel free to contact Andy Hodes at 423-664-1818.  He will make sure you stay out of the cold.

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Today from 11:30 until several minutes after President Barack Obama was Inaugurated, not much work was getting done in our office.  I was glued to my computer watching our great nation shift power from one political party to to another.  No matter which side of the row you sit on, you have to take great pride in the fact that our country can change power with an oath and a handshake.  No violent over throw, no bullets or bombs; just pomp and circumstance.

Living in Chattanooga and watching CNN from my computer was an amazing experience that really brought tears to my eyes.  I can only imagine what the 2 million people standing in The National Mall in Washington were feeling.  Everyone who attended witnessed an historic moment in our nations history (you wouldn’t find me in that crowd for any type of money!) which is pretty young compared to the rest of the world.

 I take great pride in my country and look forward to our new President making some good decisions for this great nation of ours.  The job will be tough, I have no political aspirations myself, and I am sure mistakes will occur.  But, this is a time for our country to come together as one to fix some of the problems that face our country and our world.

Personally, I hope that President Obama will provide incentives for home buyers, tweak the $7,500 first time home buyer tax credit and create options to help out those facing foreclosure.  Real estate could easily lead the recovery and interest rates don’t get much better than today’s rates.

After all to quote our new President, “We remain a young nation, but in the words of Scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.”

I look forward to seeing action speak louder than words in the days, weeks, months and years ahead!

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How do you “HullaBowloo”?  With an “unbelievaBowl” party benefiting the Chattanooga Area Food Bank.

“HullaBowloo” will be a night for “Bowlicious” food, “enjoyaBowl live music, “applaudaBowl” performances and a chance to be part of a most “admiraBowl” cause, filling the bowls of Chattanooga’s hungry.

Saturday, January 17, the Chattanooga Area Food Bank will be transformed into a festive, urban scene, alive with street dancers, an outdoor cafe, roving musicians, a local “watering hole”, a park, and even a community garden.  As you roam through the streets of the city, learn more about the many programs supported by the Chattanooga Area Food Bank while being “bowled” over by all the wonderful food and entertainment offered at every turn. Imagine yourself singing karaoke, break-dancing in the street or even shooting some hoops.  The evening will come to an end with dancing to the “Bowldacious” music of “Peace, Love and Happiness”.  So how do you “HullaBowloo”?

$45 per person, call 622-1800 to reserve your seats!

- from www.hullabowloo.com

If you would like to hear about this spectacular event, call Andy Hodes at 423-664-1818 he will be attending and can tell you all about the event or give you some great real estate information on the Chattanooga real estate market.  Your call to him will be “enjoyabowl”!

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(Third in a Four Part Series)

*Please note that I am not compensated for any product mentioned*

“Squeezin’ every nickel
Pinchin’ pennies ’til they holler
That’s the way you live on a blue collar dollar
Blue collar dollar.”
Kevin Gordon - Blue Collar Dollar

#5 Grocery Store Savvy

When I’m at the grocery store check-out line, I feel like Fred Sanford when I see the final price for my groceries.  I just want to grasp my heart and yell, “This is the big one, Elizabeth!”

Even though prices are increasing at the grocery store for most products, you will save money if you follow these tips.

If you don’t read anything else in this piece… please take the following to heart.  Buy store brand!

I will admit, I once was an elitist when it came to store brand food.  Cheap generic ketchup?  Why would I give up my Heinz for something that would probably taste like watered-down vinegar with food coloring?  I figured any kind of store brand maple syrup was Mrs. Butterworthless.

However, my budget started to tighten in the current economy.  My local Publix and Kroger started advertising cheap prices on their own products.  Guess what I found?  Most of their products are equal to, if not better, than name brands.

Not only can you save on basic items at these grocery stores, Kroger now offers premium store brands.  They make great meals.  Publix’s prepackaged microwavable meat products, canned vegetables, and condiments are more cost-effective and taste better than comparable corporate brands.

While not every store brand has comparable taste to corporate products (I’m not leggo-ing my Eggos), try some store products.  Your taste buds won’t notice the difference and your wallet will thank you.

Also, this should go without saying.  Always buy store-brand for non-edible products.  There’s no difference between corporate and store plastic utensils and napkins other than price.

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Conforming mortgage rates ended 2008 at the lowest levels in decades. One reason is that inflation is not a concern right now due to the current economic weakness and the decline in energy prices. In addition, the Fed has begun to purchase mortgage-backed securities (MBS), increasing the demand. Mortgage rates are generally determined by the price of MBS. On November 25, the Fed announced a plan to purchase as much as $500 billion in MBS, and mortgage rates have dropped significantly since the announcement. Low inflation and Fed purchases of MBS are expected to continue in coming months.

Along with low mortgage rates, homes have reached their best level of affordability in many years, according to the National Association of Home Builders (NAHB). The NAHB index compares the cost of paying for a home, based on average home prices and mortgage rates, to the median household income. Increased affordability allows more people to participate in the housing market, which should boost demand for new and existing homes.

The consensus outlook is that the economy will begin to improve during 2009. In addition, both the Mortgage Bankers Association (MBA) and the National Association of Realtors (NAR) expect the housing market to improve next year. The NAR predicts that both the number of existing home sales and home prices will increase in 2009. The combination of a rebounding economy, low mortgage rates, and affordable home prices provides good reason to expect an improved housing market in 2009.

For more information please call Andy at 423-664-1818 or send an email to Andy@AndyHodes.com.

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To all our friends, family, clients and fans of the Scenic City Scoop,

We all would like to wish you and your families a very Happy and Healthy New Year.

Andy, Kacey, Stephanie and David

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Let me start off this article by stating that I do not show houses, however, I have been asked the question on numerous occasions, “will my house sell faster if I take down my wallpaper and paint the walls?”.  My answer is always YES - and everyone on the team concurs!  I have read a few articles on the subject of Paint vs. Wallpaper and there are distinct advantages to having wallpaper on your walls.  There are also many disadvantages. 

In the Chattanooga real estate market, most buyers these days are looking for simple neutral painted walls.  Wallpaper is just a turnoff to most of the buyers in today’s market.  Remember, I always say that you only get a first impression once.  Wallpaper usually is a bad first impression.  I don’t want to knock wallpaper, I grew up with it all over my house (ended up trying to take it down myself as a teen-ager, what a disaster!).  There are so many colors, textures and designs that you can choose from.  I feel that wallpaper is an expression of an individuals personality.  There are some beautiful homes that I have visited in Chattanooga that are well decorated and the wallpaper is beautiful.  If people didn’t like wallpaper there wouldn’t be thousands of companies selling the product.

So, what is my point.  Selling real estate in Chattanooga can not have a personal expression of one’s self.  A house must be staged to sell.   In my opinion that means tear the wallpaper down all over the house and paint the walls. 

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Guest Blogger - Jay Zuckerman
*Please note that I am not compensated for any product mentioned*

Hard times, in the middle of your road
Hard times, creeping up on the good folks you know
Hard times, living down where the rest of you know
Hard times, from the California Hills to the Cumberland Road

Ryan Bingham - Hard Times

#3 Your Local Library

Is the cost of $25 hardcover books or $15 for paperbacks at bookstores becoming a burden on your wallet in this current financial environment?  Remember that building you would go to in the 1980’s to gather information for an essay and inevitably get distracted by the latest issue of Sports Illustrated?  Yes, it’s your municipal library. In Chattanooga, we have the Chattanooga-Hamilton County Bicentennial Library with a large downtown library and five satellite and branch locations.

If you are a Scenic City denizen, You can become a member of the Chattanooga library for free.

The Chattanooga-Hamilton County Bicentennial Library has a terrific online interface which allows you to check out a book from the convenience of your own home.  Live in East Brainerd and don’t want to drive downtown to pick the book up?  You can choose where you want to pick up the book at no cost. It takes at most two business days for the book to arrive at your preferred branch.

If someone else has the book you want checked out, you can place a hold online.  You will receive a postcard in the mail when it is available.

But wait there’s more: The Chattanooga-Hamilton County Bicentennial Library has many best sellers (usually fiction) available at their front entrance.  For a nominal donation, you can check the book out for a week.

But wait there’s even more: You can apply for courtesy cards at many University libraries. At UTC, you can obtain a University Library Card even if you are not a current student.  Alumni, dependents of faculty and staff, Hamilton County teachers, and students at the University of Tennessee or any Tennessee Board of Regents school can also receive a UTC Library card at no cost.

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