Risk Rap

Rapping About a World at Risk

Anecdotal Evidence: Real Estate Market Rebounds!

My neighbor Hank has had his home on the market since the fall. He retired years ago and spent a good portion of his time attending to the care and maintenance of his beloved home that he has shared with his wife Judy for over 40 years. Last summer he decided it was time to move to an assisted living community. He bought a home in a senior community down by the Jersey Shore and put his place up for sale.

He just missed the real estate market peak in early 2007. He hung on to his beloved place a year too long. Soon after putting his home on the market the sub-prime mortgage meltdown hit and as the contagion spread through the credit markets Hank couldn’t get anyone to come to see his nice home. Over 6 or 7 months numerous open houses and a couple of St. Joseph statues buried around the property he had one offer that fell through because the buyer couldn’t get a mortgage. Hank now has two homes; one at the senior community with a new mortgage and his beloved home of 40 years which he could not sell. As a guy on a fixed income Hank was and still is in a pickle.

Yesterday I was doing the spring cleaning outside; getting the grass, garden and gutters ready for the summer. A real estate agent pulled up with an open house sign. She planted it into Hanks perfect lawn and entered the house. I said yeah, good luck. My skepticism soon turned to joy for Hank as car after car parked outside and went for the tour. He must have had 20 visitors. I would greet everyone with a smile, a wave and a cheery hello to try to do my part to help Hank sell his home.

Either the St. Joseph statues are working or maybe Bernanke’s interest rate cuts are adding a little liquidity to the credit markets. Hopefully this is going on across the country and hopefully things will get unstuck in the real estate market.

We’ll keep you posted on the state of the housing market from our little corner of the world and our business development plans to consider marketing St. Joseph statues.

You Tube Video: The Beatles, Fixin a Hole

Risk: credit; senior citizens; mortgages; real estate; fixed income

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April 21, 2008 - Posted by | Bernanke, community, credit crisis, pop, real estate | , , , ,

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