Dismal numbers released yesterday by the National Association of Realtors® should make residents of Somerset County, New Jersey feel a little better about their situation.  At a time when sales declined nationally in June over the preceding month, Somerset County saw the steady improvement I pointed out here a short time ago.  The ratio of buyers to sellers continues to improve, as does the absorption rate (which had worsened for a month in May).

So far this year the average sale price is off less than 1% over the same period last year, even though sale are off 28% over last year, reflecting in large measure the disappointing 34% decline in the first quarter, and the improving in the second quarter to "just" 22% decline.

The point to my posting is that Somerset County is doing better than the mythical "national market."  Moreover, pay attention to your local market, unless your buying and/or selling somewhere else.  Just as Somerset County market numbers mean nothing in Las Vegas, Las Vegas numbers mean less than that in Somerset County.  It's all about your local market.

The non-existent "national" real estate market changed today, as the U.S. House of Representatives passed a housing bill, and the President said he would sign it after the Senate passed it, ostensibly in few days.  On May 15 on this blog I wrote about a meeting I was in with Congressman Barney Frank (D - MA) who said that despite statements to the contrary, the President would sign the housing bill when it was passed.  The congressman knows his stuff.

I will write further about this later, but mark this day, July 23, as when the real estate market accelerated its improvement.  There are many aspects to this bill that will revive the market, but the news today is the psychological boost the market needed.

Stay tuned....

Yesterday, July 16, in a very thoughtful article in Realty Times, Peter G. Miller pointed out that Wall Street frenzy over Fannie Mae and Freddie Mac was unwarranted, given the substantial assets they have plus their access to the credit markets.  There is no doubt that both GSEs (Government Sponsored Enterprises) have "major accounting issues," but Miller contends that those are not sufficient reason to make a run on the stocks.

A few hours after Miller posted his article, Jim Cramer, screaming mimi of hedge fund promotion, on the "Today" show proposed that Fannie and Freddie be shut down and that ten smaller GSEs be created in order to help the economy.  He was less than forthcoming on why that would be desirable, but would it make it easier to manipulate a market or GSE if the GSE is smaller?

Miller raises the suggestion that the rumors causing a run on Fannie and Freddie stock were made by someone who might benefit.  The media certainly pick up quickly on rumors that blaze around the globe at Internet speed.  Since home sales seem to be picking up virtually everywhere, and oil seems to have plateaued for the present, I guess Fannie and Freddie were selected to sell papers and grab eyeballs.