Have Median Home prices reached Historical "Normal" levels?

By
Real Estate Broker/Owner with Remax 24/7 Real Estate

A new article in Wisconsin Real Estate magazine January 2010, we are starting to reach our historical median norms for Wisconsin. While these are market and price range specific, it appears that home price have fallen back close to a normal range. In our local area of Appleton, Neenah, the Fox Valley and NE Wisconsin, I have seen this happen, but most experts locally say a 3-5 % reduction is still out potentially there in the median market price range.

I think the price downward slide from "Sub Prime" lending has slowed. In contrast, the effect of "Option Arms" is not over and really has yet to begin. Statistics from Amherst Securities states these types of loans will not peak until January 2012. In Conventional loans Q4 data shows nearly 10% are behind by at least one payment and Sub Prime is nearly 40%. Wow! The largest growing sector is 1 million+ dollar properties because tight lending policies have limit funding for these homes. In a nutshell, we will continue dealing with foreclosures and short sales values affecting the retail market.

On the positive note, the federal tax credit is helping demand. Home Affordable Modification Program (HAMP) programs may make a dent...but this is program is based on helping people that are struggling with but still making payments on underwater house values. HAMP does not appear to be designed to help those behind on their payments. FHA has eased lending policies, and their 90 day flipping rules.

Till next time,

Tom

 

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About Me: I have been in the real estate broker since 1993. I have a BS from University of Wisconsin-Madison (92). I have experience in real estate, land (subdivision) development, new home construction, and mortgage finance. This experience gives me a well round knowledge base of all aspect of a home and I use that knowledge to help sellers and buyers with highly informative sale style.

I am the first nationally certified distressed property expert (CDPE ) in the fox valley area and specialize in Foreclosures and Short sales. What this means? As a CDPE I am a skilled negotiator with banks on a national level and a savvy marketer of real estate. I set the right market determined price and convey the correct information to the banks, I can help successfully facilitate both residential and commercial situations where financial stress and market changes result in non-performing (upside down) loans as it relates to real estate property. This net result to my clients, is faster resolution and reducing long term credit damage.

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Thomas J. Otis Broker Associate; REALTOR®, ABR®, CDPE©, EAH,e-Pro RE/MAX 24/7 Real Estate 2835 W. College Ave. Appleton, WI 54914 Direct: (920) 284-8508 Office: (920) 734-0247 Fax: (920) 560-5438

email me: totis@remax.net

Web: www.gotorealestatetom.com 

Smart, Aggressive, Professional

Bank Foreclosure and Short Sale Specialist CDPE: Certified Distressed Property Expert EAH: Employer Assisted Housing certified

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Topic:
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Wisconsin Winnebago County Neenah
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Tags:
wisconsin
foreclosure
appleton
fox valley
short sale
fha lending
making home affordable
hamp
home afforable modifcation program
tom otis

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