Scanning the real estate news today gives us all reason to celebrate and cause for concern.  I started the day with the following article which cites real cause for concern in the numbers of foreclosures and the impact that the foreclosures have on the property value of neighboring properties.  The Center for Responsible Lending cites startling statistics regarding the foreclosure starts for the 2009.  Year to date the foreclosure starts have reached 1 million with the projected number to rise to an estimated 2.4 million by year's end.  The Center cites the concern and loss of value for neighboring properties.  I think there is an inherent responsibility on the part of the banks and mortgage companies to modify any loans that can be modified with a particular focus on making the numbers work over the long term as compared to a short term financial solution that ultimately leads to forclosure anyway.  As important, the banks and mortgage companies also hold responsibility to acheive professional representation and marketing and make every attempt to sell each of these properties at the highest and best possible price.  These efforts are important to the nieghborhood and quite frankly have not been entirely evident in my view.

On to the GOOD news, the National Association of Realtors has posted very encouraging numbers which show sales contracts in April to have risen 6.7 percent representing the highest monthly jump since October 2001.  Those are very impressive numbers that would lead to a real sense of optimisim in the real estate market.  However, these sales figures don't tell the whole story because these numbers represent volume rather than market value.  More propeties on the market can lead to more sales and the inventories in most markets is still quite high. 

Under the heading of "everything is local", I do have to say that the primary market, Lexington, Massachusetts, that I operate in is a shade of both which is where I suspect many of us are.  The market here is neither heavily impacted by foreclosures, not entirely reflective of sales by first time home buyers and is certainly at a higher average sales price than most neighboring communities but BUSINESS IS BOOMING!  I'd love to hear what everyone else is experiencing.