Delavan Real Estate & Mortgage Blog

Using data compiled in December, Standard & Poors released its Case-Shiller Index Tuesday.  The report shows home prices down just 2.5% on an annual basis, a figure much lower than the 8.7% annual drop reported after Q3.

According to Case-Shiller representatives, the housing market is “in better shape than it was this time last year,” but some of the summer’s momentum has been lost.  15 of 20 tracked markets declined in value between November and December 2009.

Meanwhile, it’s interesting to note the 5 markets that didn’t decline — Detroit, Los Angeles, Las Vegas, Phoenix and San Diego.  Each of these metro regions were among the hardest hit nationwide when home prices first broke.  Now, they’re leading the pack in price recovery.

For some real estate investors, that’s a positive signal.  But we also have to consider the Case-Shiller Index’s flaws because they’re big ones.

As examples:

1. Case-Shiller data is reported on a 2-month lag
2. The Case-Shiller sample set includes just 20 U.S. cities
3. There’s no “national real estate market” — real estate is local.  The Delavan real estate market is as unique as any in the nation.

That said, the Case-Shiller Index is still important.  As the most widely-used private sector housing index, Case-Shiller helps to identify broader housing trends and many people believe housing is a key element in the economic recovery.

If the markets that led the housing decline will lead the housing resurgence, December’s data shows that full recovery is right around the corner.

Travis Egan Asst Vice President Walworth State Bank 1221 South Shore Drive Delavan, Wisconsin, 53115 US	Work: 262-728-6209 Mobile: 262-745-5055 tegan@walworthbank.com www.walworthbank.com
Lender, Delavan Real Estate

I know its Halloween, but have some of you lost your minds?  Are you intentionally scaring your children about the doom of our economy? 

I read an article by Liz Pulliam Weston where she makes it clear some of us are doing just that.  It made me pause and ask myself if I’m in the same boat.  I know this; I will pay a lot better attention to it now. 

Take a look and tell me what you think.  Are you doing this? 

I don’t know about you, but I’m a bit tired of our government bailing out all these investment banks.  What happened to letting the market “fix” itself.  If we are, as we profess to be, a free market society, then why in the hell is Uncle Sam constantly bailing out these failing companies?  I’ve heard the whole “if we fail to help them then there will be a run on banks and cause issues with the money supply,” argument.  But these aren’t depository banks.  These are investment banks.  Do our elected officials think we’re all a bunch of idiots?  They must.  We know the difference.  The greedy bastards that couldn’t wait to throw money at anyone with a pulse to buy a home, all in the name of better interest rate returns are now being forced to answer for their decisions.  They gambled and lost.  If I go to Las Vegas and lose at the Bellagio am I then able to call Ben Bernanke and ask for a bail out?  Actually, we’re all losing.  Isn’t AIG an insurance company?  I mean c’mon…  Am I the only one who’s had enough?  We wonder why our collective taxes keep rising.  We wonder why so many people look to the government to save their behinds.  All we have to do is look at the headlines.  Apparently, if you donate millions or billions of dollars to political parties than you move up to being “bail out” worthy.  Let the markets do their job.  Let the chips fall where they may.  Old venerable institutions like Lehman Brothers, Merrill Lynch, AIG, or any other company who chose to purchase sub-prime mortgages should reap what they sow.  You collateralize junk mortgages and never expect to pay for that then you suffer the consequences of watching the company you run vanish.  I try to teach my children that there are consequences for poor decisions.  Apparently, that’s only true if you’re not a multinational, company worth billions of dollars.  Otherwise big brother will ride in and save the day.

Travis Egan is Delavan, Wisconsin’s premier mortgage lender and looks forward to the opportunity to discuss your real estate and mortgage questions.  Please call him at (262) 740-7751. 

Originally posted: http://activerain.com/blogs/travisegan