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Mortgage Crisis and Central Madison

October 24, 2007

Last night I was invited to attend a “think tank” of real estate company owners to discuss the current real estate market.  The gathering was hosted by M&I Bank and started out with a great reality check of the current mortgage market spelled out by M&I’s mortgage management team.

What’s interesting is that many feel the same way I do about our current real estate market.  It AIN’T SO BAD!  In fact, the overall market is only down in volume less than 7% year over year.  What seems to be killing the market is the press.  Headlines that sensationalize such as the Capitol Times headline from few weeks ago “Local Home Building Hits Low of the Century” certainly doesn’t boost consumer confidence.

Today I spent the day at my Wausau, WI brokerage office.  They are facing the exact same negativity in the press. 

My plea to those who know better is to ask for the real statistics.  What are sales doing compared to 2006.  Compared to 2005?  2004?  This should give a better indication of this “crisis” and what is really happening in the mortgage and real estate markets.

 Are there opportunities for some great residential purchases?  Absolutely! 

 Has the market hit bottom?  No one really knows.  I can say, with a fair amount of confidence, that if your plan is to buy and live in a property for 3  or more years you should be in great shape.

Here are some interesting blog posts I’ve found on this topic

Not All Homes are Full Cash Machines

Massachusett’s Governor Offers Borrower Bail Out

The Housing Market NOT in a Recession

4 Comments leave one →
  1. October 26, 2007 4:15 am

    i feel that we realtors have to do exactly what you are doing here. Giving info. We got a bit lazy maybe over the last 5 years and now have to start running at sellers and buyer with info. We have to be salesperson, a consultant and an information provider.
    People are inherently lazy and will take the easiest course of action. If that means reading the paper getting their info, than that’s it for them, unless… you run at them put new info infront of them. People you have found this site probably aren’t the norm and are seeking out info. But not everyone is going to do that.

  2. October 26, 2007 1:47 pm

    I believe you are right on the mark. I think the challenge is to get the right information to print media about local markets vs. them running national stories to be an indication of local real estate. That’s truly where the disconnect is coming from.

  3. Idetrorce permalink
    December 15, 2007 11:57 pm

    very interesting, but I don’t agree with you

  4. December 16, 2007 4:32 pm

    Idetrorce-thanks for the comment. I’m curious as to why you don’t agree. Since I posted this the statistics keep coming in proving that 1) real estate markets are local and 2) the sub-prime meltdown is having a very low impact in our area.

    I’d love to hear your thoughts.

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