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IN THE NEWS
Housing Market
Recovery Indicates
Less Volatility and
Lessons Learned
Renewed profitability in the real estate
market lacks the troublesome "irrational
exuberance" that caused problems in the
past, according to Wade Micoley, president
and CEO of WM Enterprises, Inc., and the
online auction house Micoley.com.
"We're happy to see things recovering, of
course," Micoley said, "but we've never been
so cautious about expressing our optimism."
Micoley says the pace of the recovery
shows investors have learned valuable lessons. "Even with renewed sales and profitability, we're seeing signs of unprecedented
stability," he said, noting that stability of this
type is exactly what everyone wants to see in
2013.
Despite overall economic growth, home
sales transactions were relatively stable from
August to September. With an annualized
rate of approximately 5.3 million sales in both
months, it's hardly a staggering boom, but
Micoley says this is actually good news.
When investors take an interest in
something, it tends to attract the attention of
other investors, who will do the same. The
result can be significant economic growth
over a short time, according to the Wisconsin-based entrepreneur.
However, if the assets become overvalued, and investors continue to invest, only to
realize all at once that their investments aren't
as valuable as they once thought, it can result
in a rapid regression that undervalues those
same assets in a short time, which can be
dangerous economically, Micoley explained.
Real estate investors are showing renewed
interest in buying property, but they aren't
overeager, despite September being a month
of growth overall. This type of level-headedness needs to be applied across the board
within the industry, according to Micoley.
SAVE THE DATE
LEGAL LEAGUE 100
SERVICER SUMMIT
APRIL 17, 2014 | RITZ-CARLTON, DALLAS
04.17.2014
STAT INSIGHT
2,491
GSEs' REO count in
Wisconsin as of midyear.
Source: Federal Housing Finance Agency
95
