Bill Mews

We've just reduced the price on this 4 bedroom, 2.5 bath colonial to $259,500. It sits on almost 2 full acres in an established subdivsion. Better yet, there are no association fees!

Use the following link for additional pictures and more information about this home:

http://www.obeo.com/Public/Viewer/Default.aspx?ID=528421

The following was provided by the Greater Milwaukee Association of Realtors:

RISMEDIA--With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it's no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you're selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year - much less than historical average returns for the stock market. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns - and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%. TIP: Get the fundamentals right when investing in re! al estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It's conceivable that taxpayers may have to cover some losses. It's also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is "bailing out" homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed's activities influence mortgage rates but don't directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range. TIP: Today's rates don't look bad compared to the 10% we saw in the early '90s and 17% in the '80s.

7. It's the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It's the right time for everyone to buy. No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one's interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner's budget to see if you're ready to buy a home.

9. It's a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don't have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.

For more information, visit www.frontdoor.com.

Well, I decided to go to the lakefront on New Year's Day with my inlaws and do the Polar Bear Plunge again (I did it back in 2007). My wife and daughter were going shopping so I took my 6 year old son with me. I had talked him into doing it as well (kids don't seem to have any kind of temperature guage on their skin so I thought he'd do fine).

Well, it was a little colder this year than it was 2 years ago but we went more prepared. I had boots along for the walk back to the car, hot chocolate for waiting to go in and also the trip home, cookies for an energy boost, extra towels and even some plastic to put down on the sand so everything didn't get wet/sandy.

I had read in the paper that there was some ice you had to go across to get to the water but I never expected what we saw. The ice was about 10 feet wide and 2 feet tall. Then, you had to climb or jump down into the water which had floating chunks of ice in it. Further out in the water were what we referred to a "icebergs". After looking at all that, I told my son that he wasn't going in and neither was I.

One brave (or crazy) sould jumped in and tried to make it to the iceberg but only got about 2/3 the way out to it and had to turn back. Of course, at 12:00 noon, about 2,000 people worked their way over the ice and into the water. Some just jumped in and got right back out. Others jumped in, waded out a ways and then came back out. And a select few dove completely under (they say you have to go in completely for it to "count").

I guess I'll try again next year. Here's a link to the video I took of it:

http://www.youtube.com/watch?v=tyXzvIX2fCE

The following was sent to Greater Milwaukee Association of Realtors members. Let's hope that the turnaround happens!!!!

-------------------------------------------

By Jennifer Sereno12/16/2008 Is Wisconsin poised for a turnaround in the real estate market?

If the recent results of a statewide public opinion poll are any indication, the answer may be "yes."

By way of background, Wisconsin home sales and median prices have been affected by national trends and both slipped during the third quarter compared with the same period a year ago, according to data from the Wisconsin Realtors Association. Existing home sales in the state fell nearly 17 percent in the third quarter compared with the third quarter of 2007 while median sale prices fell 5.3 percent to $160,000 statewide.

Nationwide, home sales fell approximately 8 percent during the period with the median sales price declining by 9 percent to $200,500. Although leaders of the Wisconsin Realtors Association expect the fourth quarter and first half of 2009 to remain soft, sales are stabilizing in a number of markets. Among the counties that recorded third quarter sales increases while experiencing only minimal or no price declines: Grant and Lafayette in South Central Wisconsin; Pierce in the West; and Calumet and Shawano in the North East.

Meanwhile, according to the statewide Checkpoint public affairs survey, 70 percent of respondents agree it is a good time to be in the market to buy a home now. The survey of 400 Wisconsin residents was conducted Nov. 18-20 and contains a margin of error of plus or minus 5 percentage points.

Men appear to be more confident about prospects in the housing market than women, with 76 percent of men agreeing it is a good time to buy a home vs. 65 percent of women. Twenty-two percent of men and thirty-three percent of women worry it is a bad time to buy a home, while the remainder are unsure.

Interestingly, there is no statistically significant difference between the genders when it comes to perceptions about how Wisconsin's economy is performing. Nearly 70 percent of both genders (69.8 percent men and 67.9 percent women) agree that things in Wisconsin "have gotten pretty seriously off on the wrong track.''

When asked about the factors that would increase the likelihood of buying a home, the single most important item mentioned by respondents was a "significant increase'' in take-home pay (identified by 27 percent; respondents were allowed to select up to three answers).

"Lower interest rates" ranked as the second most important factor that would increase the likelihood of buying a home (identified by 20 percent). It was followed by lower property taxes (16 percent); a more stable stock market (16 percent) and improvements in the health of the economy (15 percent).

On the income front, it appears that Wisconsin residents have been making some progress, although it remains to be seen how recent gains in household income will be affected once the full impact of the recession is taken into account. Through 2006-2007, median household income in the state increased by 7 percent to $52,218 from the levels of 2004-2005. That compares to an increase of 2 percent to $49,901 for the nation as a whole.

If at least a portion of these income gains can be sustained, the current lower mortgage rates sought after by the respondents may provide the support the state housing market needs to begin its recovery. Since mid-November, when the nationwide average for 30-year fixed rate mortgages reached 6.1 percent, rates have been heading downward.

-- Sereno, former business editor of the Wisconsin State Journal, is a senior manager at Wood Communications Group in Madison. E-mail jenny.sereno@wcgpr.com or call (608) 770-8084.

Hey all you realtors out there! I need your help. It's been a tough year and I could really use a pick-me-up. I have started blogging (unfortunately I can't talk about real estate) on a local website. They are currently having a contest for a $200 football prize package. I have submitted a picture of our son in his Packer uniform and he was chosen as one of the finalists. I need help voting for him. You can vote once per day and the contest goes through December 21st.

With the way my year in real estate has gone (down 50% from last year) and the way the Packer season has gone, I could really use a good finish to 2008. Could you go to the following link, register and vote? We'd really appreciate it!

You can find the entry here:
http://jsonline.upickem.net/engine/Details.aspx?contestid=4114&pagetype=VOTING&SubmissionID=348781

Thanks!
Bill