Thank you for your input on this volatile issue. I always appreciate the valuable resources within our industry. You are a true professional. Please continue to give me feedback and information when you see that there is opportunity.

On this topic, as the article you mentioned points out, there is still a lot of gray as to what is declining and not. At this point we have too many people who are too afraid to underwrite and are relying on knee jerk reactions to steer their policy decisions. As the dust settles from this current mortgage crisis, we should see desire of investors to start extending credit overcome issues like this. But for now, the game changes each and every day!

Thanks,

Chris

Of course if Fannie and Freddie relax their policy it doesn’t mean that the MI companies will insure the properties.

Bob Rutledge

Author: “Wally’s Way” An Action Plan for Real Estate Success

Coach: Success Coaching for the Budget Conscious Real Estate Agent

Professional Mortgage Consultant

Midwest Mortgage Capital

314-787-5637 Office

314-913-9678 Cell

http://www.bobrutledge.com

bob@bobrutledge.com

http://www.stltoday.com/stltoday/business/stories.nsf/0/79003846EB12B2A08625744A0008856C?OpenDocument

This is worrisome because not everyone has been willing to admit yet that we’re in a downturn. Granted, California started its downturn in 2006, and statistics show that we peaked in August of 2007, the reality still remains. It’s going to get worse before it gets better. Median price has to come in line with median income before we can recover, and it hasn’t yet gotten to that point. At median income of 37K (estimated based on 2000 census and reported pay increases since), St. Louis median prices should be around 90-100K, not 150K. That number is the greater metro area, not just the county.

We’re close, but not there yet. You really need to get down to the micro-level to find pockets at correct price levels, but the majority of the area needs a downturn to return to fundamentals, which merits the “broad brush” approach more than other methods.