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.

There really is GOOD news on the economic and housing front if you look for it.  Wells Fargo is projected a record profit in large part attributable to mortgage origination.  I have to say that if one were to look at the local market activity here in Lexington, Massachusetts you would certainly not think we are in a recession-that is for sure!  Multiple Offers and properties going under contract in a couple of days are becoming more common as we usher in the Spring Market.  These stats when they are posted by the mainstream press will likely have an even greater effect on the activity in the market.  The Wall Street Journal has an encouraging article for Buyers as well.  Seems they are questioning, along with us, why buyers would sit on the sideline at this point.  I hope the Good News keeps Coming!

I find myself in the routine of hosting Open Houses weekly; actually several, and I am wondering if the traditional Open House is actually the way to go or if they have truly become passe and we just haven't yet caught on to it.  Are houses really selling at Open Houses?  Are Buyer Relationships created at the Open House?  Or are we doing Open Houses more out of a sense of obligation and as a force of habit?  I can't be sure but I can say that I am finding that the Buyers that are coming through are more often than not under contract with other Agents and those that are not have tended to not be seriously looking yet and not at all interested in establishing an ongoing relationship with an Agent.  Is it me?  YIKES!

Clearly, there is always the chance of selling the bouse or asscoaiting with the ultimate buyer by being out there at the Open House so for nowI take that chance!  I guess, given the fact that we have not come up with a real alternative, the Open House will stand in our market locally and we will dutifully greet potential buyers with a smile and hope for the Best but I still wonder.....

Not so Fast!  I will have to say it is somewhat disconerting to be channel surfing on Saturday and land on a foreclosure segment on FOX NEWS.  While the foreclosures in the Hamptons in the high end luxury market is all very sad (a bit sarcastic admittedly) it wasn't what was so disappointing to hear that night.  The speaker being interviewed, Kendra Todd, was what some may call realistic about the market but I would certainly call it pessmistic for sure!   She was citing statistics as to what percentage the market will continue to drop this year, WHAT??  How does she seem to know this and if she is so sure I wonder if she could give me the winning lottery numbers for this week's game.  She went on to say that we should all be very concerned when the high end of  the market is lapsing as so goes the rest of the market.  I really don't agree with that premise at all.  In my experience the reverse would be far more concerning.  I would be far more alrmed if I saw the lower and moderate price points in trouble.  That would really signal deeper trouble.  What would have been far more helpful and realistic I believe would be to simply state that "None of us know what is going to happen with this market so buyers should be very careful and informed on their local market."  The market in Lexington, Massachusetts is holding its own.  There is activity and there are sales yet certainly adjusted from the hay days, obviously.  DoomsDay it is not.  If you are buying for long term or looking to buy up to a larger home...Now is definitely the time.  The interest rates are favorable and there are some great homes offering unbelievable value ("value" does not mean "fire sale").  Investment Properties if you are in the position to buy one..Another GREAT financial move!  I have been showing multi families close to Boston and finding the market swift and the prices strong!  My client has been outbid on a couple and is now adjusting to the fact He will have to be far more realistic and drop the bargain mentality in irder ot be competitive.  So in my world all is not perfect but there are truly postive signs for recovery!

Maybe FOX NEWS will invite me on next week.  I am waiting for Geraldo to give me a call!

I am not an economist but have spent a great deal of time studying all of the different aspects of the recovery and stimulas plans; some of which make sense to me and some quite honestly do not.  I, like most of us, have stake in this both professionally and personally and both short and long term.  I continue to be concerned with the fact that there seems to be little guarantees of outcome on the billions of dollars allocated to improving the economy.  If you want a different opinion then change the channel or turn the page-it really is that simple!  I would have liked to see some consensus among experts and advisors relative to the how to best utilize in excess of a trillion dollars.  There is so much disagreement it is actually unnerving.  BUT WAIT.......HERE IS WHAT REALLY SEEMS LIKE A  BAD IDEA!  Anyone earning over 250K will not be allowed to deduct mortgage interest.  WHAT????  How can this possibly be a concept in favor of a recovery on the Real Estate front?????  I thought that the Housing Market recovery was vital to the recovery of the economy.  I can not connect the dots here.  Read more about the proposed plan on the National Association Site