Real Estate Market Comment

The Federal Reserve captured headlines again today, as it tried to stave off another potential credit-market seizure. In an unprecedented Sunday meeting of the Federal Reserve they took the following action: they pledged to lend, in return for no saleable mortgage-backed securities, $200 billion of Treasury notes to banks and investment firms that trade directly with the central bank. The scuttlebutt suggests the Fed acted to save investment banking behemoth Bear Stearns, which had been unable to secure credit against its massive portfolio of mortgage backed securities.

These securities matter to Main Street as much as to Wall Street; they provide the source funding for the mortgage market, which is why Fed Chairman Ben Bernanke and his colleagues are trying mightily to halt a cycle in which the losses on mortgage investments cause banks to cut their lending, possibly sending the economy into a recession.

Unfortunately, the turbulent housing market isn't cooperating. Home foreclosure filings in February edged down from January, but were a whopping 60% higher than a year earlier, according to real estate data firm RealtyTrac. Unfortunately, the mortgage-backed securities market can't improve until the housing market improves.

And as for the recession, some believe the fight is over – and the Fed lost. Separate surveys by Bloomberg and the Wall Street Journal show the majority opinion believes we are in a recession. The opinion isn't without merit: The Commerce Department reported that retail sales fell 0.6% in February. The decline reflects a sharp slowdown in consumer spending, which accounts for more than 70% of U.S. economic activity, as Americans grapple with high fuel and food costs and declines in home values and other asset prices.

The good news is that inflation appears to have abated, which seems improbable given soaring oil prices. Nonetheless, it has. The consumer price index showed no increase in consumer prices for February. The benign CPI reading gives the Fed wiggle room to again cut interest rates – a likely event after Tuesday's Federal Open Market Committee meeting (where the Fed sets the federal funds rate).

Finally, I’m curious where the Presidential candidates stand on all of this. It seems there’s too much rhetoric on the war in Iraq and truly not enough about the U.S. economy, the housing struggle and the price of gasoline.

I guess time will tell when these items become part of the national debate. Guess I’ll just have to walk more.

360 W. Washington Ave. Metropolitan Place Phase I

We just listed this great resale unit in Metropolitan Place Phase I. This unit is impeccably maintained and tastefully updated. Nice warm colors on the walls, contemporary lighting, solid surface kitchen countertops, maple cabinetry, 10' ceilings and a gas burning fireplace. The bedrooms are generously sized and the master has walkin closet with closet system. Large bathrooms with tiled floors, large storage unit on main level and same level parking. Treetops provide a very private atmosphere for this 3rd floor unit. Large community excercise facility in the building.

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100 Wisconsin Ave. Living in the center of it all

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100 Wisconsin Ave. #904

On the capitol square in the center of Madison. This building offers only 42 living units with commercial space on the lower 4 floors.

Unit 904 is over 2000 sq. ft. of high end finishes including 2 bedrooms plus den, 1 3/4 baths and a gourmet kitchen with subzero and wolf appliances.

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