The real estate market has been like a wild ride this past year.  One neighborhood is selling while the other has no offers. “Inventory is up and inventory is down. Our market is up, our market is down. All homes are in foreclosures, we’re selling fast, we’re selling slow. The sharks are circling. It’s a horrible time to buy; it is a great time to invest.” All of these comments and more have been in the news this year.
 
Let me address the issue of foreclosures. The foreclosure rate is outrageous. It is crossing all the social and economic lines. Over half of all foreclosures are due to the sub-prime loan and yet only 10% of the mortgage loans in the United States are sub-prime. Most of these loans were made in high-cost market areas. Lenders and Wall Street took a gamble making and backing loans to people with low credit scores, poor savings history and did not always verify income ratios. Buyers took a gamble that their financial outlook would improve or that they would be able to refinance their homes into loans with more favorable terms. Both lost.
 
Because of the credit crisis this caused, potential buyers listened to the news and heard the real estate bubble had burst. In fear of making a bad investment, many withdrew from the market. Others went forward and found that lenders had become wary as well, resulting in making loan qualification more difficult.
 
Well, the dust has settled. Buyers are finding that the market did not collapse in every city, town and neighborhood in the nation. Lenders have begun to realize borrowers of good standing are still out there. The government has signed a stimulus package and lowered the interest rate. The fear is subsiding and markets are changing for the better.
 
Out of the 149 metro areas studied in the past quarter by the National Association of Realtors®, it was found that 49 of the metro areas studied were experiencing an increase in home sales and values. Yes, that leaves a lot of metro areas that are still on the decline but the state of Wisconsin , Ozaukee County and Washington County are not among the falling markets. Our market has slowed in the number of sales this last year but the values of homes has held steady or increased.
 
In southeast Wisconsin , it is a great time for buyers, sellers and investors. Sellers can still realize a reasonable gain from their home sale, allowing them to take the next step in their life/financial goals. Buyers can purchase homes at reasonable prices and may receive some incentives or concessions from the seller. Investors can place their real estate dollars in a healthy real estate environment.
 
You must remember that no matter the market conditions in the nation, your state or city, conditions do vary from neighborhood to neighborhood.
 
Market condition reports are not always reliable because they are dependent on the area and criteria used. Unfortunately, as yet, there has been no standard developed as to what databases should be used in the reports.
 
Your best source of information about your neighborhood is your local Realtor®. Realtors® have access to the most current data for each neighborhood and street and use it to form realistic, localized reports.
 
If you are considering a purchase or a sale, talk to your local realtor. For those of you in the Ozaukee County and Washington County area, feel free to contact me. I will be happy to be of assistance.