Storm Lake and Local Area Housing Market Report - January through July 2008

Everyone is asking, how's the real estate market and without looking at the actual numbers I know we are down but not suffering in this immediate area. I was actually surprised at how much we are down not just in price but also in number of homes selling.

The Iowa Association of REALTORS publishes the monthly statistics on their site. The following numbers are reported by the individual Boards of Realtors, in our instance that is is United Counties Board of Realtors.

January 2008 - Median Price $52,000 down from $85,500 in 2007
Number sold 13, up from 12 in 2007

February 2008 - Median Price $72,500 down from $88,000 in 2007
Number sold 22, up from 16 in 2007

March 2008 - Median Price $78,500 up from $77,500 in 2007
Number sold 9, way down from 25 in 2007

April 2008 - Median Price $78,000 down from $83,000 in 2007
Number sold 3, again down from 5 in 2007

May 2008 - Median Price $55,000 down from 87,000 in 2007
Number sold 19, down from 23 in 2007

June 2008 - Median Price $90,000 up from $89,000 in 2007
Number sold 19, down from 25 in 2007

July 2008 - Median Price $85,000 down from $91,500 in 2007
Number sold 21, up from 11 in 2007

The real estate market in our area, just like all over the US is trending down. I believe that can be attributed to 2 major factors: the first is insecurity making major financial commitments due to the instability in the economy and the second it the whiplash effect we are experiencing from all the poor loan practices over the last 3-5 years. Banks are requiring a very good credit score and a down payment. Many Americans have neither, so they have no choice but to continue to rent. There is a bright side to all markets, regardless of whether they are up or down. In this one the silver lining is for the people who own rental properties.

Hopefully, this long needed correction in loaning practices will serve as a wake up call for all of us to SAVE, read the fine print, live under our means and learn to wait for some things.

Do You Have an Adjusting ARM? How do you know if You Qualify for Help

If you have gotten caught in the adjusting ARM nightmare, there is hope. Follow the link in the title to see if you qualify for the assistance program. Don't just stick your head in the sand! If you have missed one payment you may still qualify. Contact your lending institution or the company that services your loan and call 1-888-995-HOPE, which provides counseling to homeowners with mortgage problems.
There is HOPE, the best defense against getting into trouble is to educate yourself and don't keep your knowledge to yourself, pass it on.

Realtors and Consumers The Chairman of the Senate Banking Committee Needs Your Support

Sen. Christopher Dodd is expected today to introduce a bill that would require mortgage lenders to issue only loans that are beneficial to borrowers and that borrowers are able to repay. What a novel idea - What, you thought the banking industry had your best interests at heart????

This bill seeks better loans for consumers. The proposal by the chairman of the Senate Banking Committee would not only force mortgage lenders to act in the best interest of borrowers, it also would expose Wall Street firms to lawsuits (IT IS ABOUT TIME!!!!) as well as bar subprime mortgage lending practices such as prepayment penalties and yield spread premiums, (this should not be how a mortgage broker gets paid) can anyone say Major Conflict of Interest???
Dodd's proposal is in some ways similar to one from Rep. Barney Frank, which passed in the House by a wide margin in November.

Mortgage companies and banks are expected to come out in force against Dodd's bill. Really? well you as an American consumer can help get this measure in place ----CALL YOUR BANK, MORTGAGE COMPANY, SENATOR AND YELL - Get this legislation passed and implemented. "I'm Mad As Hell and I'm Not Going to Take it ANYMORE!"



Click on the title to link to Reuters article on the bill