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Lunch. Fed minutes released. Media rants.

By
Real Estate Agent

My office and I had lunch today with Mr. Craig Igl our Chase South Central Mortgage Senior Loan Officer and he gave us the scoop on the release minutes from the last Fed Meeting. 

And I quote from Craig, "In this commentary, Fed officials indicated the housing market is showing signs of stabilization in most areas of the country.  Regional differences remain, with reasonably firm home sales in some areas and continuing declines in other areas, but the overall picture indicates home sales have grown during the fourth quarter.  Also noted was an increase in mortgage applications for home purchases since last summer, an improvement in sentiment among homebuilders during the past few months, and a decrease in new home inventory.  

Although new home inventories remain high and need to be reduced before growth in housing is seen, Fed officials were optimistic that the risk of a far larger "retrenchment" in housing had lessened and that the pressures on the housing sector will likely subside later in the year.   These are very welcome words on the housing market, and a far cry from the doom and gloom being portrayed in some of the media."

Posted by

China Crowell

China[at]SmokeSignalHomes[dot]com

Comments(1)

Dan Burgeson
United Realtors, LLC - West Bend, WI

Home sales have leveled out in my market area(Washington County WI Real Estate) as well.  Isn't it amazing how the media can play such a huge impact on our market?  I remember about a year and a half ago, I couldn't turn on the TV after 11pm and not see an infomercial on how people where making millions flipping houses with 0% down.  At that point people where buying like crazy, and predatory lending was high. Rapid buying was driving people thinking about selling "off the fence".  That is when you see overinflated prices.  People where willing to overpay.  So why wouldn't you sell?  Then came the over saturation of homes on the market, overpriced and sitting.  Just like the stock, housing is a market.  At least the real estate market has a great spreadsheet!

Best Regards,

Dan Burgeson

DanBurgeson.com 

 

Feb 23, 2007 05:38 AM