Council Bluffs Market Reports May 2006 to July 2007

Great use of trendgraphix! 

Hi Jason,

Yes, Jason Smith, you are da man for RE in Council Bluffs, Iowa.  You've give me a good idea for a post about our MLS here in the Des Moines and Central Iowa market.  Things slowed down dramatically during the summer (maybe had something to do with me loafing on a vacation?) but have just as dramactically picked up here in the last 30 days. 

RE market trends are indeed regional though some of what is going on in the sub-prime markets are national.  When you take 1.1 Million buyer households out of the market in one year, and then add to that nearly the same number for an increase in foreclosures nationwide; well that translates to some slowing of the market. 

It is interesting, however, that Council Bluffs, and most parts of Iowa are not feeling the crunch as badly as many parts of the country.  When we've never had a "boom" it's not likely that we'll have a "bust".   Here in Iowa, we just keep trudging along at a fairly slow rate of growth. That definitely has its advantages when there is a slow down. 

I am surprised, however, that states don't work out some kind of "maximum expansion quotas" with cities, suburbs, and towns.  Builders are primarily to blame for this current slow down.  They have just way overbuilt, particularly with townhouses in Des Moines.    

Unfortunately for those who will lose their homes this year, the American Dream will continue to elude them.  IMO, there has to be some legislative reform at the Federal level to help prevent this type of set back in the future.  

Personally, I think ARM's should only be available to accredited investors, or people with a 720 or higher FICO.   ARM's are like giving people a credit card and saying, "go spend up to the limit and then we'll start to collect in a couple of years".  How many people do we know that could get into more than a little trouble with that kind of temptation?   Who doesn't want to increase their lifestyle if the bank says, "Oh yeah, no problem.  We can let you bury yourselves in a mortgage that you can't really afford".   It may not be "predatory lending" but basic greed played a large part in this current credit mess.   

Kind of like how our government keeps spending money that it doesn't have.  One day, this is going to come back to haunt us.  

Anyhow, great post Jason!   And, thanks for that recent phone call.  I'll see what I can do to help!   

Hi Jason,

Yes, Jason Smith, you are da man for RE in Council Bluffs, Iowa.  You've given me a good idea for a post about our MLS here in the Des Moines and Central Iowa market.  Things slowed down dramatically during the summer (maybe had something to do with me loafing on a vacation?) but have just as dramactically picked up here in the last 30 days. 

RE market trends are indeed regional though some of what is going on in the sub-prime markets are national.  When you take 1.1 Million buyer households out of the market in one year, and then add to that nearly the same number for an increase in foreclosures nationwide; well that translates to some slowing of the market. 

It is interesting, however, that Council Bluffs, and most parts of Iowa are not feeling the crunch as badly as many parts of the country.  When we've never had a "boom" it's not likely that we'll have a "bust".   Here in Iowa, we just keep trudging along at a fairly slow rate of growth. That definitely has its advantages when there is a slow down. 

I am surprised, however, that states don't work out some kind of "maximum expansion quotas" with cities, suburbs, and towns.  Builders are primarily to blame for this current slow down.  They have just way overbuilt, particularly with townhouses in Des Moines.    

Unfortunately for those who will lose their homes this year, the American Dream will continue to elude them.  IMO, there has to be some legislative reform at the Federal level to help prevent this type of set back in the future.  

Personally, I think ARM's should only be available to accredited investors, or people with a 720 or higher FICO.   ARM's are like giving people a credit card and saying, "go spend up to the limit and then we'll start to collect in a couple of years".  How many people do we know that could get into more than a little trouble with that kind of temptation?   Who doesn't want to increase their lifestyle if the bank says, "Oh yeah, no problem.  We can let you bury yourselves in a mortgage that you can't really afford".   It may not be "predatory lending" but basic greed played a large part in this current credit mess.   

Kind of like how our government keeps spending money that it doesn't have.  One day, this is going to come back to haunt us.  

Anyhow, great post Jason!   And, thanks for that recent phone call.  I'll see what I can do to help!   

Hey Andrew- good to hear from you again.  We really do miss you around AR here.  I know you're busy but when you have some time please come back and enlighten us.

The "correction" as many refer to it by, as far as I'm concerned has to happen.  Like a cold, you may be able to relieve some of the symptons but it just has to run its course.  I agree that we are lucky here in Iowa, we have not had the extreme highs and lows that others are seeing.  I think its much nicer to trudge along at an even pace than to see the "real high" and "real low" extremes.