Are we angry about the inexcusable and irresponsible mortgage lending starting in the year 2000, culminating in the mortgage meltdown of 2008? Are we upset about losing value in our homes from 2008 until present? Here is some perspective that may provide some peace and solace and allow you the freedom to move forward!

Here is a graph which charts mortgage prices back to 1890, for existing housing as an investment over time. The cost of inflation is factored out of this chart. The figures are national, as our Milwaukee-Metro market varies in swings up and down. One fact is certain, that in the years 2000-2006 prices skyrocketed to exaggerated highs, coming back to pre-2000 prices where we are today.

Why did those prices spike to unsustainable levels of 2006? Because of the irresponsible (more…)

I am fortunate to have a view of the real estate market which most folks just don’t have. I sell many homes each year and talk to mortgage lenders, buyers, sellers, home inspectors, stagers, contractors and so many others connected in some fashion to the housing market. In my conversations we discuss the current state of the market as well as their prediction or feel for the future based on their client’s comments and views of the present health of our local real estate market as well as the expectations for the future. I want to share those views with you, the reader, so you can make plans for your home sale when the time is right for you. Also, you can share this information with your children and grandchildren who may be on the sidelines waiting for the right time to jump into the housing market for their very first purchase.

The overwhelming sentiment is that we will not see appreciable appreciation of our single family homes for another two to three years. But the good news is that price depreciation is slowing down to a single digit decline and moving towards stabilization. That is very good news, as prices have fallen since 2006. That has been a 5 year fall in home values for an average decline of 20-40%, depending on location. Inventory of homes for sale is also falling which is a sign of recovery. Therefore, do we wait for that moment when we know the bottom is here and prices are on the rise? My experience shows me that (more…)

Have you ever tried to paint the outside of your home in the winter? Not a good idea! All too often, I visit with folks ready to make their move and put the home on the market. They are excited about the apartment or condo they just found, and now it is time to sell their home. However, it is February, and the home needs inside and outside improvements. Downsizing of personal property has not been started, and the interior needs several upgrades before showing the home. Improvements have been avoided because moving seemed so far off until they stumbled into this perfect new home which they don’t want to lose. The excitement has now turned into panic and all the seeds for high stress have been planted by their inaction to prepare their home for sale.

Today’s buyer wants a property that is in great condition both exterior and interior. If you’ve read my past articles, I have stressed to make sure your property does not compete with foreclosures if at all possible. Foreclosures often are homes that have been neglected due to lack of funds, and are selling at up to 70% off the top market value! Therefore, your home must be far superior to the foreclosure competing in your neighborhood. If you know you will be selling sometime in the next 5 years, begin downsizing today! As Realtors, we can begin your process of preparing your home for market by offering the services of a stager. A stager is a professional trained in not only decorating, but placing furniture and artwork to compliment new flooring and carpeting as well as choosing the right colors which are attractive to today’s buyers. There are companies that will assist you in downsizing by packing, sorting, and coordinating estate sales as well as donations.

If your home needs exterior work, do it right now, while it is still warm outside. Don’t procrastinate on exterior work, as you never know when you are going to want to move. If the work on the outside is done now, you can always do the interior improvements in any season. If paint is needed, a stager can help you pick out (more…)

We all are anxious about our present as well as our future. Wouldn’t it be nice to have that crystal ball that would give us some clues as to what our economy will look like next year and beyond! Since no reliable indicator exists, we can only depend on the so called “pundits” who profess to know more than most, but their results are mixed. I am going to take a stab at my own predictions of next year’s real estate market with the risk of missing the mark a bit and having you, the reader, remind me of my well intended attempt! My picture of next year’s market is based on many conversations with banks, appraisers, home owners, buyers and sellers. I have 32 years as a full-time Realtor providing a good base for my insights into 2010’s housing environment. So here goes:

I believe that our economy is not out of the woods, but it is gaining some footing. Americans are feeling that (more…)

We love our homes! Just think back to when you purchased your very first house. Feel the emotions of excitement and the thrill of leaving an apartment for the independence of home ownership. For many, that journey may have begun 30-60 years ago. Those memories are an important component of our life histories. The houses worked for us as long as you kept up with the maintenance both inside and out. But what has changed are the owners of the home!

Over the years our surroundings become a part of us. We sometimes feel that our home and neighborhood are synonymous with who we are and how we view our place in the world. We know the neighbors, the stores, the restaurants and our places of worship, which in most cases are within a short distance of our homes. Thinking of venturing out from our homes to a new environment is daunting. The number one fear holding most of us back from a move to a new apartment or community is the (more…)