Posted by: China Moon | October 26, 2006

Pay attention to your own backyard…

What’s the Real Estate Market like in Madison WI? Phenominal! Well, for some. It depends on what side of the fence you’re on. There are some things you’ll need to look at:


1.) Take a look at your local area. Your own city, your own town, wherever. Ask around; look around. Stop listening to the national stats all the time. Every now and then is cool but you can’t compare the living conditions and housing in Lancaster CA to say McFarland WI. Take a deep breath and blink.
2.) Don’t automatically jump ship on being a first time homeowner in Madison and surrounding areas. There are some things you’ll need to ask yourself(selves)…

  • When is your lease up?
  • Are you mentally ready for the responsibilites of your own home?
  • Who are the major decision makers in the household?
  • How much house can you afford?

Ask yourself some seriously hard questions before heading to all those open houses.

Remember, it is indeed a Buyers market right now. But, if you’ve got a home to sell and are looking you may need to cut your price, be prepared to hold onto your current listing for however long it may take or acquire a bridge loan to purchase until your other one sells.

So, if you already own a home, only you can decide what’s important in this scenario:

  • Are you able to buy another home without selling your current home?
  • Are you wanting to sell or purchase first?
  • What’s a more comfortable extreme: owning two homes or owning none?


  1. China Moon,

    I think your blog is great. I look forward to chiming in on a regular basis to give you my personal and professional opinion on mortgage loans and real estate.

    Ruben Ernesto
    Finance Professional

  2. I like it too. I will add you to my blogroll as I am always interested in the real estate market and what is happening in specific areas. It is so much nicer to blog with someone in a target area rather than read in the local paper or online and get a slanted view.

  3. China Moon,

    I continue to enjoy your company and getting to know you. I just visited your site and I wanted to tell you, it looks fantastic! Please feel free to ask my expert opinion on any finance matter you desire (real estate, mortgage, credit, budget planning, etc).

    Ruben Ernesto
    Presiding Director

  4. Yes I have been to China and the Moon and it’s great!
    I just wanted to chime in today because I’ve noticed some trends in the market I thought your readers might want to know about if they haven’t already read it themselves. It would appear to me that all that sub prime lending that was going on in the last few years with ridiculously low rates are beginning to have a negative impact on the real estate market. The truth is that many mortgage companies and banks were lending to consumers who really shouldn’t have been buying. Many customers with credit scores of 500 -640 who really weren’t ready or couldn’t afford it got approved and over paid on rate, points and closing costs. For the mortgage lender many of them are now beginning to feel the losses with past due efforts via collections and foreclosure costs on loans they shouldn’t have been doing. The consumer is affected because they may be trying to sell thinking they were going to get a certain amount of equity for their investment. But now that appreciation has finally slowed down the consumer is not seeing that profit and are taking losses on their sales or the home is just simply not selling. For the buyer that means higher asking prices from financially strapped sellers and fewer “affordable” homes on the market. Bottom line, for many sellers it means having to lower their asking price by 10%, 15% as much as 20% just to sell their property and hope to break even.

    Ruben Ernesto

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