KILZ Launches Pro Painter Sweepstakes Contest

By Mark J. Donovan

KILZ, the paint and primer company, announced last week their first ever National Pro Promotion contest. It is a contest targeted only to professional painters and offers them a chance to win a new Ford F-150 truck as the grand prize. There are also other prizes to win including BRAVIA 46” LCD HDTV and Sony Home Theater Systems, and Coleman Tailgate Packages. To learn more and to participate in this contest see: http://www.kilzpropainter.com/. Hurry as the sweepstakes contest ends this week!!

Home Construction up 4% in August, But Stormy Skies Still Ahead

By Mark J. Donovan

Though not a grand slam, seeing single family home construction increase 4% in August over the previous month was a welcome sign. Apartments and condominiums also shot up a whopping 32% during the same timeframe. This said new home construction starts are still down 78% from their peak in January of 2006.

Though this news was encouraging I am still not optimistic that the housing market is on a clear path to prosperous times again. With unemployment ticking up to 9.6% officially and slated to go even higher before year end, its unimaginable that sustained improvement in home construction starts will continue unabated. In addition, with so much uncertainty in the national politics, massive tax increases kicking in January for everyone, and expected large health insurance premium increases starting soon, it’s hard to believe that there is smooth sailing ahead in the home construction industry. On top of these harsh realities there are still many prospective home buyers waiting and hoping on the sidelines for even lower house prices. Couple all of these facts with a high inventory of existing homes on the market and increasing foreclosures and the prospects of a sustained improvement in the home construction business seems highly unlikely.

It appears builders feel the same way about the home construction market prospects. The National Association of Home Builders (NAHB) also reported its monthly index of builders’ sentiment in September, and it remained unchanged at 13. This is the second month that it has been at this level, the lowest since March of 2009.

Until there is a change in the national politics, less uncertainty with out-of-pocket expenses, and more income into the savings accounts of the average homebuyer, the home construction business is likely to stay in the doldrums for the foreseeable future, regardless of this positive blip of news.

Trip to Annecy, France and Classic Stone House

Spent the Week on the Shores of Annecy Lake in a Classic Chateau Style Hotel

By Mark J. Donovan

Last week I was in Annecy, France and had a chance to climb a mountain in the foothills of the French Alps. Along the way to the mountain I was able to snap some gorgeous photos. Shown in the adjacent picture is a classic stone house on the outskirts of Annecy, France.

The views at the top of the mountain were absolutely spectacular. I also had a chance to observe up close and in person paragliding. I watched probably a hundred people take off from the edge of the mountain (around 1300 meters) into the skies over the Annecy Lake valley area. Though I didn’t attempt to paraglide this time, it’s on my list of things to do on my next trip to Annecy, France.

While in Annecy, I stayed at the Palace de Menthon, a classic chateau style hotel sitting on the shores of Annecy Lake. Annecy Lake was absolutely gorgeous with emerald water. It sits at the foothills of the French Alps, near the Swiss border and is absolutely crystal clear. It is considered the cleanest lake in all of Europe, and I have to agree. It was simply spectacular.

Besides the gorgeous views and climate, the wine and food were also phenomenal. Suffice it to say, I am looking forward to visiting Annecy, France again and connecting up with my European colleagues.

Clean Gutters with the Onset of Fall Weather

By Mark J. Donovan

It is important to make sure to periodically clean your gutters with the approach of fall weather. With leaves falling off the trees and strong winds associated with hurricane season, gutters can often become clogged with leaves and debris. Clogged gutters can lead to water damage in the attic, home and basement. Clogged gutters can also lead to ice dams during the winter months. Ice dams can cause water damage in the attic and cause the gutters to pull away from the home.

To clean gutters you need a ladder, garden hose, and a pair of work gloves. Make sure when using a ladder that it is set properly on the ground to prevent accidental falls. Clean gutters by initially removing leaf and branch debris with your hands. Then use a garden hose to force residual debris and water down the length of the gutter and out the down spouts.

Also while cleaning the gutters, inspect for and repair any damaged gutter pieces. Also make sure the fascia trim boards adjacent to the gutters are not showing any sign of rot. You may also want to scrub the exposed fascia board to remove any mold or mildew that may have formed on them.

Plunging Home Sales is Clarion Call for Economic Change

By Mark J. Donovan

This week’s news reports about plunging existing and new home sales should not come as a big surprise. The unemployment rate still officially stands at 9.5% and the administration says it could get worse before it gets better. We are already seeing signs that their prediction is coming to fruition. Honestly, who’s going to buy a home when they are either unemployed or worried about becoming unemployed? To some it may appear incomprehensible that with recent rising profits businesses would not be hiring. However, if you put yourself in the shoes of either a large or small business owner you might be doing the same – preparing for a business profit ice-age.

With U.S. federal corporate tax rates at 35% they are already nearly twice as high as the international average. Then foist upon them major health care legislation costs and huge increases in tax rates as of January, 2010 and you can’t help but understand their hesitancy in hiring. Capital gains and interest and dividend tax rates, for example, are set to jump from 15% to 39.6% in January. That’s a 165% increase!! Those types of tax increases on business and investors generate a giant sucking sound in profits and market caps. Reduced profitability and lower market capitalizations hurt businesses ability to retain employees let alone hire them.

So no one should be surprised with the latest dismal home sales reports, and quite frankly no one should be surprised to see this trend continue. Until there is a change in direction on federal corporate and personal tax policy, and until there is clarity on health care cost impacts, large and small business alike will continue to be slow in hiring if they hire at all. Simply calling for the federal government to print more fiat money for more make-work “state” jobs won’t cut it. No truly objective observer really believes the trillions that have already been spent in the past couple of years on banks, unions, and poorly run state bailout programs has done anything appreciably positive for the United States. Based on the falling value of the US dollar and U.S. Stock Exchanges, it’s obvious the world doesn’t believe the spending has worked, so why should we.

To conclude, if the administration and congress continue on their current reckless spending, power grab, and corporate regulation course, future United States homebuyers may soon be doing what other citizens have done in other federally run government centralized countries, standing in line for state owned housing and awaiting government issued food and furnishing handouts. So much for the American dream. If change is not imminent, get ready to put a fork in it as we are done as our forefathers new us.