Need to Know: Servicing Your Air Conditioner
HCFCs and the Ozone Layer
The stratospheric ozone layer shields the Earth from the sun’s harmful ultraviolet radiation. Emissions of certain synthetic chemicals – including CFCs, halons, and HCFCs – destroy the ozone layer, and have created an “ozone hole” over the South Pole.
Through the Montreal Protocol on Substances that Deplete the Ozone Layer, the United States committed to a collaborative, international effort to regulate and phase out ozone-depleting substances. While the US phased out of CFCs and halons in the mid 90’s, we now must first limit HCFC consumption to a specific level and then reduce it in a step-wise fashion.
Phaseout of R-22 and R142b
HCFC-22 (also called R-22) and HCFC-142b are the next two HCFCs that the United States will phase out. The schedule to phase out HCFCs is:
- January 1, 2010
Ban on production and import of HCFC-22 and HCFC-142b except for continuing servicing needs of existing equipment - January 1, 2015
Ban on sale and use of all HCFCs except for certain uses, including continuing servicing needs of refrigeration equipment - January 1, 2020
Ban on remaining production and import of HCFC-22 and HCFC-142b
After 2020, the servicing of systems with R-22 will rely on recycled or stockpiled quantities.
January 2010 Market Report
The Atlanta housing market ended the year on a positive note. However, the strength in October & November did not follow through into December. This may be a reflection of the housing stimulus ending and then being reinstated, but the overall bad economy remains a negative factor for housing demand.
There were 622 closings for single family attached in December. This was a 20.3% increase over December 2008 and was the 3rd consecutive monthly year-to-year double digit percentage increase. Out of the last 34 monthly periods the number of closings declined in 26 out of the first 27 months. But, out of the last 7 months there have been 5 months with monthly year-to-year increases in closings.
Single family detached closed 3,357 homes in December. This was a 3.9% year-to-year percentage decrease, but after lags are reported it will probably be an increase. Closings in December are usually greater than in November. However, 2009 will be negative for only the 2nd time over the past 15 years.
Closings for all single family in 2009 were 52,474 or a decrease of 4.6% from 2008. The last time yearly closings were less than 2009 occurred back in 2001. The 2009 closings were also far below the record high back of 81,071 back in 2006.
The average sale price for single family attached in December 2009 was $155,819. This was 7.9% below December 2008 and marked the 25th consecutive year-to-year monthly decline in price. The average sale price was never above $160M in any month of 2009 but the last time it was below $160M before 2009 was February 2001.
The average sale price for single family detached was $202,135 in December. This was unchanged from the same year ago period, but more than $82M below June 2007’s all time high.
The average sale price for all single family in 2009 was $190,682. This was 14% below 2008 and almost $64M below 2007’s all time high. The last time the yearly average price for all single family was below 2009’s average was back in 1999, TEN years ago.
The average sale price for both single family detached and attached were down 13.8% & 14.9%, respectively, from 2008. The last time an average price was lower for both categories was in 1999.
There were 62,300 expired listings for all single family in 2009. This was more than 23M below 2008’s record of 85,446. There were 22,697 withdrawn listings for all single family in 2009. This was more than 11M below 2007’s record of 33,860.
It is usually a very good sign when there are less expired and withdrawn listings, but for 2009 we need to also take into account the much reduced inventory during 2009 versus 2007 and 2008.
There were less than 45,000 homes/units on the market at the end of 2009. This is far below the end-of-month record of 72,000 homes/units on the market at the end of August 2007. The last time the end-of-month inventory for all single family was below December 2009 was December 2005.
I predict housing will be up the first two quarters in 2010, because of the extended housing stimulus. However, Georgia’s unemployment was just announced for November and it was a record high 10.3%. I believe this may continue to climb and signals a possible double dip recession the second half of 2010. Call your state representatives, write Washington, and let your voice be heard to get this economy going.
Thank you,
Steve Palm Smart Numbers
Real Estate Plays A Key Role in Energy Efficiency
- Image via Wikipedia
The real estate sector plays a key role in energy efficiency and conservation.
The United Nations’ Intergovernmental Panel on Climate Change determined that cost-effective energy efficiency measures in buildings could reduce building emissions by 30% from the 2020 estimated baseline.
Basic improvements include improved building insulation, greater heating and cooling efficiencies, energy-efficient lighting, and energy-efficient appliances.
Learn more about the United Nations’ Sustainable Building & Construction Initiative here.
Spotlight on Water
Our communities are facing greater challenges regarding water supply and infrastructure. How much water does an individual use daily? Find out here!
10 Water Trivia Facts:
- How much of the earth’s surface is water? ?80%
- How much of the earth’s water is suitable for drinking water??1%
- How much water does an individual use daily?? Over 100 gallons (all uses)
- In which room is the most water used? Bathroom
- How much water can you save by turning off the tap while brushing your teeth in the morning and before bedtime? 8 gallons a day
- How much water can a leaky toilet waste each day? 200 gallons
- How much water is used in the average five-minute shower??15-25 gallons
- On the average, how much is used to hand wash dishes?? 9-20 gallons
- How much water is used to produce a single day’s supply of U.S. newsprint? ?300 million gallons
- How much water is used during the growing/production of a single orange??13.8 gallons
Source: Environmental Protection Agency
How is Your Local Water Quality?
Get reports on about Georgia local water quality here.
State Rebates on Water Saving Products
The Environmental Protection Agency’s WaterSense label makes it easy to identify water-efficient products such as toilets and faucet accessories. Find state rebates here.
November 2009 Market Report
The positive trends that were experienced in October continued in a big way for November. The year-to-year percentage change for all single family closings was another double digit consecutive percentage increase. It was also the greatest year-to-year percentage increase on record.
Our housing industry had been down for 13 consecutive quarters, but it is a very good bet that 4th quarter 2009 will have a year-to-tear increase for all single family closings. Not just up, but a double digit percentage increase. There were 4,377 closings for all single family in November and this was against a very weak 2008 result. However, after lags are reported November 2009 will exceed November 2007.
There were 3,630 closings in November 2009 for single family detached. This is an increase of 32.9% over November 2008 and the greatest year-to-year percent increase since April 1996’s 41.6%. If there are a lot of lags, this could be the largest percent increase since records have been kept (January 1995).
There were 747 closings in November for single family attached. This is a huge 85.8% increase over November 2008 and the largest year-to-year percent increase since records have been kept. The previous greatest year-to-year percent increase for single family attached was November 2005 at 53.2%.
The average sale prices for all single family remained weak in November, which helped stimulate the increase in demand. The November average closed price was $189,306 and the lowest reported monthly average since April 2009’s $182,369. However, with demand increasing and inventories continuing to decline I expect inflation to kick in and in the not too distant future.
The average closed price for single family attached in November 2009 was $147,347. This is down 8.5% from November 2008 and the 24th consecutive year-to-year monthly average price decline. I am continuing to predict low prices for single family attached into 2010, because of the large inventory of condominium foreclosures the FDIC needs to dispose of. I don’t know what is in worse shape, the Atlanta condominium market or the North Georgia mountain vacant developed lot inventory. I think deals will abound for both of these markets into and through 2010.
Single family detached inventory has dropped again and is now down to 36,263 actives at the end of November. The last time it was this low was February 2006. At the end of December we will be back to 2005 levels.
The months-supply for single family detached finally dropped below ten months at the end of November. After peaking at 14 months July-August 2008 we have finally dropped below 10 months for the first time since April 2007. We still have a way to go before reaching a “normal” 6.5-7.5 months supply.
There have been a lot of good numbers and trends to report the last few months. What is even more encouraging is that the trends are increasing at an increasing rate or accelerating. However, I believe the next 2-3 quarters will be positive, but there are still too many potential negatives to think positive any farther out.
The threat of inflation kicking in is looking more like a reality by the end of 2010, and the commercial & A&D foreclosures will restrict lending throughout 2010.
Thank you,
Steve Palm
Smart Numbers 2009 Smart Numbers
