September 2008

With all the conflicting reports surfacing on the Internet and in the news media, it can be difficult to dissect the truth from all the hype. And I will be the first to say that I don’t understand the economic market and the failing of our credit institutions and how it all relates, BUT I do know the real estate market and how it effects us in Middle Tennessee.

The problem with the news media, as I see it, is that they continue to lump the entire country under this big dark cloud of sub-prime mortgages and foreclosures….when it reality, there are only several states that are in a housing distressed state of mind, those being, California, Arizonia, Nevada and Florida. The National news seems to only focus on the negative… We have all read the headlines, “Doom and Gloom for the Housing Market”, “Millions losing their Homes”… this type of scare tactic needs to be stopped….it is halting the economy.

Being a “half-full” thinker, it is much more encouraging to hear that only 2% of the Homeowners throughout the United States are either in foreclosure or are in immediate danger of facing foreclosure…and here is the real clincher…in good times, the average number of homes in foreclosure is a mere 1.5%…we are currently only ½% difference!! That means that the majority of Americans are continuing to pay their mortgage ON TIME .Tennessee is weathering the storm, and home prices throughout the state have leveled off.

Let’s talk specifically about Nashville and it’s surrounding communities. We are currently showing a 28% decline in the number of homes sold over the same time last year, while we are showing the number of days on market increasing. In certain sectors of the area, the median price of a home is showing steady signs of rebounding . This news should be reassuring for Sellers. This should also serve as a wake-up call to Buyers to get into the market before further increases.

When reading reports about the real estate market, I urge you only look regionally…don’t look at the national picture because it is skewed and does not represent a true picture. Real estate will always be a wise investment.

Until next time….

Today’s post is a bit off subject but we all need to think about what happened this last week-end.

Do you ever stop and just listen to the daily news headlines…..horrific train crash in Los Angeles…Hurricane Ike pounding the Gulf Coast and forcing millions of people out of their homes.

Hurricane Ike really hit home with me…my Mother lives just outside of Galveston, Texas which took a direct hit. It will still be several days before she is allowed back into her town to see if she still has a house standing or if, at the age of 77 years, she will have to start all over. I am hoping that my childhood home is still intact and has weathered another storm.

I remember Hurricane Carla…I was a small child and I can remember the devastation that hit our small town. Water was over 4-1/2 feet tall throughout our home…nothing was salvagable except for 2 marble slabs that were tops to my Mom’s favorite coffee tables. Today, over 30 years have passed, and I still have one of those marble slabs!

My heart goes out to all of those along the Gulf Coast who have been displaced by the storm. Our Government learned from Katrina and is in place ready to help. And those of us who do not live in Hurricane-proned areas can help by donating to the Red Cross. Visit www.redcross.org to help Hurricane Ike victims.

I wish my hometown a speedy recovery!!

Until next time….

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