Stimulus Stimulant

Unless Uncle Sam's teasing the American public, the stimulant for the real estate sector of the economy is coming to an end in two weeks from today. The upshot will be felt, by those who participated and those who did not, for much longer. Hope wishes for no negative repercussions. Hope may be blind.

Increasing numbers of foreclosure properties in any state effects the way lenders to do business in Wisconsin. The statistics gathered by RealtyTrac.com are reported on FoxNews and if rising numbers in foreclosures are symptoms of ill health, there had better be a doctor in the house.

Realty Trac is my teacher. When they came on-line a few years ago Madison, Wisconsin barely had a pulse on the site. We were immune. Foreclosure was isolated and we were immune. Then the cough started. In April 2010 we can say for certain, foreclosure is contagious and Realty Trac people were way ahead of the curve when they launched. They saw a shift, read the indicators correctly and were well in place by the time the convulsions hit.

For the last year Realtors and mortgage lenders sustained on the stimulant which energized the newest home owners. These are folks who may soon be participants of the newest fad--upside down home ownership, because we didn't learn our lesson and 3% or less down payment loans were the rage. In addition, a shift in value for the least expensive homes has not happened yet. The stimulus looks like a sure win instant lottery--buy a house, get $6,500.00 cash. Got a down payment? Don't need one. The credit is credit. Come and get it. What percentage of buyers wanted the cash and got a house? Zero? Hope so.

I wonder if the stimulus' legend will be less about how it impacted the economy and more about how it stimulated a change in the nature of Realtor's. Seeing what's coming I'm going to sharpen my patience and compassion attributes.