Day 1 of the Conference and Existing Sales Report

Notes From Day 1 of the Conference
The National REIA Marketing and Technology Conference is under way, and the first day was a jam-packed flurry of activity. The kick-off at the CBN Studios got things rolling, and the Uvestor folks took a gander at the digital editing division. Then it was off to learn about Regent University and its use of online marketing to increase the ranks of its student body. Next, a web panel discussed social networking strategies. Scott Whaley wrapped up the proceedings with a speech about implementing systems to achieve business results.

What To Make of Existing Sales Report
Prior to the release of yesterday’s NAR report on August’s existing sales numbers, Bloomberg News gathered a survey from 74 economists predicting that the news would be positive, a gain of 2% over July’s numbers and a two-year record high. So it came as a bit of a thud when the NAR report actually revealed a slight decline from July (-2.7%). Neither drastic nor out of line, the numbers still compare very favorably to August of 2008. Meanwhile, the expectation of higher unemployment numbers also ended up on its head, as jobless claims decreased for the week.

Uvestor Opportunity:
If you listen to representatives of the U.S. National Association of Realtors, it becomes clear very quickly that their organization is making an all out push for extending the $8,000 tax credit. Treasury Secretary Timothy Geithner has admitted the administration will consider it. Favorable interest rates and affordable home prices will persist, but it may take extra incentives to maintain a market-wide recovery.

Within all this is an interesting counterbalance. The foreclosure crisis has in many ways distorted the general view of the housing market for many months; however, now the first-time homebuyer tax credit has perhaps provided a bit of artificial inflation to the recovery numbers. That being the case, it isn’t hard to imagine the tax credit being extended beyond its deadline or brought back for the warm months in 2010.