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The Wall Street Journal reported today that in major markets across the country, home sales are deteriorating, inventories of unsold homes are piling up and builders continue to scale back.

In June, single family housing starts fell by .07% to a seasonally adjusted annual rate of 454,000 units.  Compare that to 1.47 million starts in 2006.  A million less homes this year!!! And it doesn’t take much imagination to realize what this does to the ancillary markets, e.g., building materials, appliances, home furnishings and on and on.

Unfortunately, without sustained job growth, the housing market likely won’t improve. In fact, the WSJ goes on to say that in the 28 major markets surveyed, inventory levels were growing and even falling interest rates haven’t been enough to whet consumer appetites for housing.

Another dynamic worth noting is the falling number of at risk borrowers recieving government backed loan modifications.  In fact, just last month 90,000 borrowers fell out of the program. 

Finally,  the trade up market has been severely damaged because many of the existing home owners are under water (or who owe more that their homes are worth) and are not willing to come up with the cash needed to close their home.  This segment of the market, dominated for years by the “baby boomers” was a real main stay in our residential markets.

I am an unabashed dog lover.  I have owned a dog nearly my whole life.  I support the Cascades Humane Society and my assistant is its current President.  When I hear of people abusing any animal and especially a dog it makes me very angry. 

When I read of the recent attack on Mr. Williams by a Pit Bull I thought of the statement made by Father Flanagan the founder of Boys Town, which was, “there is no such thing as a bad boy”. I imagine it was because just the day before I had just watched the movie which starred Spencer Tracy.   However, there is such a thing as a bad dog.  Often it is all about the owner, but sometimes it is just a bad dog.  I know, I owned one.

My German Wirehaired Pointer Klaus was bad.  I bought him before I checked out the breeder.  Subsequently I learned that this breeder’s dogs were violent.  Oh, they were great hunters, but they did not like people.  During the years following my purchase, I talked to 3 other people who had purchased GWP from this breeder.  They had to euthanize them. I loved Klaus and he loved me and it would have been heart wrenching to put him down.  And I would have had to if not for the fact we live in the country on 15 acres, our main yard area is protected by invisible fencing and I had the entry to our home posted, “Warning/Beware of Dog”.  Even then Klaus bit my brother, one of my good friends, my father-in-law and sorry to say me. He was a bad dog. In fact, he was banned from 2 different kennels.

From the accounts I read about the assault, this dog wasn’t intent just on biting Mr. Williams, he wanted to kill him.  When a dog goes for the throat, he means serious business.  I have to believe the owner had seen this behavior before, which makes the owner culpable.  A dog which makes a violent unprovoked attack like this must be put down and the owner  must be held accountable.  We just can’t make a blanket condemnation of Pit Bulls, but realize there are bad dogs and there are bad owners. 

Our residential real estate market in Jackson County has shown some improvement over the same period last year. Average sales price improved from about $75,000 at the close of 2009 to about $86,000. Much of this was thanks to the Federal Income Tax Credit and no small part to lower interest rates.  However, the average sales price is still about 39% below our market peak which occurred May 2005. 

Another encouraging sign was foreclosures have accounted for about 56%of closings ytd, versus something over 63% last year.  Still, to think over one half of all residential closings in Jackson County are foreclosures is stunning to say the least.

Finally, the fact that long term fixed rate mortgage loans are near 4.5% has helped the market and to some degree has diminished the negative effect of the end of the tax credit.

(Photo:Street scene Bayreuth Germany)

Manute Bol and Moshe Rosenwere both “facebook” friends of mine.  I had lunch with Moshe in Grand Rapids several years ago by his invitation.  I never met Manute, but watched him play professional basketball on TV several times.

Manute passed away this week after contracting a skin disease in Africa, where he was involved in humanitarian work.  He was 47.  It was said Manute gave away his 6 million dollar fortune, to aid Sudanese refugees.  Manute was a Sudanese. When his fortune dried up, he raised more money for charity by doing what most athletes would find humiliating: He turned himself into a humorous spectacle. Though he was willing to be mocked, it was not for his own gain.  He did it on behalf of suffering strangers in the Sudan; he was a “fool” for Christ.

Moshe passed away in May from cancer.  He was the founder of “Jews for Jesus” a Messianic Christian organization first headquartered in San Francisco. Moshe was also an accomplished author and a sought after speaker.  It was said of Moshe that was a flamboyant figure, with a strong personality.  I found him unassuming and very gracious.  

2 men.  Lives well led. Our world has lost 2 great men of faith, Heaven has gained 2 more Saints.

I don’t know Dylan Radabaugh.  I do know he was involved in a devastating car accident which has left him partially paralyzed.  I also know he is a student at Grass Lake High School, my alma mater.

http://grasslakeschools.com/

On Friday, June 25, 2010,from 4-8pm, at the Grass Lake High School, there will be a benefit for Dylan, including a spaghetti dinner and a silent auction.  Knowing the community as I do, I will bet there will be a large outpouring of love and support.  I would like to make an appeal that you attend, even if it is just to stop by and make a contribution.  The road to recovery for this young man will long and difficult.  Let’s show the Radabaugh Family that we care!

http://www.mlive.com/news/jackson/index.ssf/2010/06/fundraiser_planned_to_help_gra.html

My wife, Sandy, said I should do a blog about a new market in Jackson.  It is located on the south side of Michigan Avenue near State Street and the Allegiance Hospital.  She said it is a quaint little spot with several vendors including a couple of Amish Families.  The emphasis is on natural and organic vegetables and some meat.  It is open only 1 day a week, Wednesday and the hours are 2:30pm to 6:30pm.  I will provide a link to an excellent article which appeared in the Citizen Patriot and they will do a much better job extolling the features and benefits than I.  However, let me just say that if you read our local obituary section, as I so faithfully do, you quickly realize there are too many people in their 40’s, 50’s and 60’s dying in this town of cancer.  I know there are no guarantees in life, but I am diligently modifying my diet to include more organic foods and especially vegetables, fruits, etch.  Lets hope that all the damage I inflicted on my body over the years is still reversible.

http://www.mlive.com/news/jackson/index.ssf/2010/06/in_season_green_market_in_jack.html

I never had the honor of meeting Joel Gentz.For those who may not receive our local newspaper or read it online, I wanted to provide a link so that you could learn about this brave young man from the Grass Lake/Chelsea area who was killed in Afghanistan.

I told my daughter to be sure to read the newspaper account of his life because it would not only humble her but inspire her as well. It is important for all of us to know about these brave men and women who serve our country so honorably.

 Rest in peace Lieutenant.  Thank you for your courage and sacrifice. 

http://www.mlive.com/news/jackson/index.ssf/2010/06/family_of_first_lt_joel_gentz.html

When I spoke before 2 classess at Jackson High School recently, I shared with them my humble beginnings, my failures, my struggles and my victories.  I shared with them some principles which have served me well. Principles which enabled an impoverished boy from Grass Lake to achieve some professional influence and notoriety. 

It was important for me to tell the students thatI didn’t have all of the answers.  That I hadn’t “arrived” and that I was still a work in progress.  What I shared was:

1.  Be truth seekers 2. Find heroes to inspire you 3. Don’t depend on anyone but yourself 4. Never quit 5. Don’t compare yourself to others, just make sure you are doing your best5. Find a mentor 6. Develop character strength,it will get you thru the toughest times 7. Meet and embrace the struggles in life head on, it is how we grow. 8. Be committed to the work ethic 9. Be kind to yourself and to others 10. Find something you like to do and believe in and then do it with all your heart. 11. Show up.

We talked about much more, but these were the principles I emphasized to these young students, our future leaders. 

I watched a recent broadcast which gave credit to rising consumer spending to the fact that many homeowners are now deciding to opt of paying their home mortgage.  Their rational is since they are “under water” and the likely-hood of the value coming back is so uncertain, they might as well use the money to improve their standard of living.  Let me explain.

A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by.

This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads.

 Foreclosure procedures have been initiated against 1.7 million of the nation’s households. The pace of resolving these problem loans is slow and getting slower because of legal challenges, foreclosure moratoriums, government pressure to offer modifications and the inability of the lenders to cope with so many souring loans.

The average borrower in foreclosure has been delinquent for 438 days before actually being evicted, up from 251 days in January 2008, according to LPS Applied Analytics.

While there are no firm figures on how many households are following the Pemberton-Reboyras path of passive resistance, real estate agents and other experts say the number of overextended borrowers taking the “free rent” approach is on the rise.

There is no question, though, that for some borrowers in default, foreclosure is only a theoretical threat for a long time.

More than 650,000 households had not paid in 18 months, LPS calculated earlier this year. With 19 percent of those homes, the lender had not even begun to take action to repossess the property — double the rate of a year earlier.

How long this trend will continue is anyone’s guess.  It would be safe to say that at least for the foreseeable future.  By the way, I am not condoning this, just reporting on the trend.

I have known Ken and Pat Riethmiller and their 3 boys since we moved to Grass Lake from California 52 years ago.  Ken was a WW2 combat veteran who went to work for Ford on the assembly line right out of the service, married Pat and purchased this house located on the corner of Union and Church Streets in the Village of Grass Lake.  I have fond memories of staying the night when I was in elementary school and it was a long standing tradition that my brothers and I always stopped by after the 4th of July paradeto partake of the Riethmiller cook out.  Ken passed away not long ago and it was up to Pat and the boys to sell the house.  It was tough for the family and especially for Pat.  After all it had been home for over 63 years.  I never take anything for granted, so was very pleased to have been asked to assist the family with the sale. 

A young couple with deep Grass Lake roots have purchased the house.  Maybe they will live there 63 years?  I don’t know, but I have told them that I expect to see them after the 4th of July parade along with any of my 4 brothers who happen to be in town.  I told Brent, I like my burger medium rare.