To buy or not to buy

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Condo for sale signs/ Credit: Flickr user Sean Drielinger

Condo for sale signs/ Credit: Flickr user Sean Drielinger

Is the housing crisis over? While it may appear that prices have hit bottom, for those caught in the mortgage crisis, the nightmare seems far from over and others are holding back while the economy remains unsteady.

Financial journalist Terri Cullen writes at Nightly Business Report that a second “double dip” in the housing crisis is all but certain:

The last time the housing industry faced the dreaded double dip was in the early 1980s, when the economy struggled through two back-to-back recessions. Today, the economy appears to have emerged from the worst recession since the Great Depression, and the housing market is being supported by a number of government policies, including a housing tax credit, increased lending by the Federal Housing Administration and historically low mortgage rates.

So it seems unlikely that another downturn in home prices would be as severe as what we’ve seen in the last two years — but I wouldn’t bet on it. All that government support is expected to wind down later this year and mortgage rates are already starting to tick higher. Meanwhile, near-record unemployment is keeping many from buying (and keeping) homes. All of these factors will put another crimp in demand.

ProPublica is trying to find those homeowners who’ve been stuck in the mortgage crisis cycle the longest. Do you know someone who’s been paying into bad loan for the better part of a year or more?

But those who are still paying mortgages, even bad ones, are far from the worst off. In New York City, families in between homeless shelters and subsidized housing are being left in limbo – there are no more federal housing vouchers to give out, as WNYC reports.

The city is trying to make changes so people can get housing, but there is a shortage:

According to the Department of Homeless Services it costs the city about $35,000 a year to house a family in a shelter, and about $13,000 a year to provide them with a housing subsidy. While extending the voucher is one fix, advocates for the poor, and elected officials want the New York City Housing Authority (NYCHA) to also provide relief by giving families vacant public housing apartments.

So with all this uncertainty, should you invest? Take the YouDecide quiz and find out for yourself. Leave your results below and tell us what you think about the housing market.

Snow slammed

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The east coast got a one-two punch of snow this week – but can they afford to? Snow removal budgets have been blown away, and with schools, the federal government, and most businesses shut down, how will the region make up for it?

NPR’s Planet Money takes a look at the DC area, which has been hit hardest:

“Virginia has already exhausted its [snow removal] funds for the season plus a $25 million emergency reserve, and the District of Columbia is also over budget.”

Snow removal is an expensive process, and typically Washington doesn’t get much, but when it does, the corners the city cuts to save money become clear. A Washington Post story elaborates:

In the mid-Atlantic region, every state has a snow budget, but it’s anybody’s guess as to how much snow will fall in a given year.

Does “budget accordingly” for the Washington area mean preparing for a season with 3.2 inches of snow (2001-02) or for 40.4 inches (2002-03)? Will it be a December with one-tenth of an inch of snow (2004-05) or one like this month, where a single storm drops more than two feet in some areas around Washington?

Getting necessities to those least capable of coping with two-feet of snow (whose numbers have certainly increased in the past year) is also a huge challenge. WAMU’s Kojo Nnamdi Show spoke with non-profits delivering food to the homeless during the storm.

And a little further downtown, Capitol Hill came to a complete standstill, blocking votes on the jobs bill and stalling budget talks. Capitol News Connection’s Elizabeth Johnson spoke with Sens. George Voinovich (R-Ohio) and Jay Rockefeller (D-W.Va)

If you’re going to have two snowstorms that break all records, there’s not much I can do about that so can’t look at what might have been. The bigger question is, what about the recess coming right after that? That’s more of a threat to progress.”

Congress breaks for the Presidents’ Day recess next week. If it now seems doubtful the Senate can vote on a jobs bill before then. Senator Voinovich, for one, isn’t willing to rush. He says both parties tend to play the same game.

But the city shutting down doesn’t mean the news stops. Here’s the NPR staff in Washington, braving the storm outside of headquarters:

NPR Staff in Washington/Credit: NPR (www.twitter.com/nprmorningprod)

NPR Staff in Washington/Credit: NPR (www.twitter.com/nprmorningprod)

A billboard miss-tery

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Billboard on I-35 in Minnesota/Credit: MPR

Billboard on I-35 in Minnesota/Credit: MPR

Business owners in Minnesota who are frustrated with Washington are apparently behind what was thought might be an internet hoax. Minnesota Public Radio’s Bob Collins gets to the bottom of the mysterious image of President George W. Bush, smiling down at unsuspecting Minnesota drivers:

Mary Teske, the general manager of Schubert & Hoey Outdoor Advertising reports, “The Bush Miss Me Yet? billboard was paid for by a group of small business owners who feel like Washington is against them. They wish to remain anonymous. They thought it was a fun way of getting out their message.”

Various people have stepped forward around the country to claim credit — the latest was a gentleman in upstate New York from what I can tell in his e-mail. But, it’s all local, folks.

Monday quarterbacking

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Last night’s Super Bowl may do wonders for the New Orleans economy after the Saints win, and it was also a big night for some unusual businesses and advertisers.

WWNO commentator Andre Perry talks about what he calls the “most pivotal weekend in New Orleans since Katrina.”

One baseball card shop in Chicago was pretty happy with the Super Bowl outcome – and it had nothing to do with the Saints. It’s an ad for Miller Lite that’s made the store a hit, as WBEZ’s Adrienne Hill reported:

Owner Tim Herron says the response has been more than a little overwhelming—people are calling, writing, emailing. Thousands of people have visited his website.
Herron: It blows anything away that I could have done personally, I just advertise in the yellow pages locally.

In an average year Herron spends three to four thousand dollars on advertising.
If Herron had bought the ad himself during the Super Bowl…it would have cost him around 3 million dollars.

Those Super Bowl ads costs millions of dollars for a few short seconds; even the U.S. government had to shell out $2.5M for its public service announcement about the upcoming U.S. Census.

If you missed any of the ads last night, NPR lists some of the best and worst Super Bowl ad moments.