American Taxpayers will be responsible to pay this bill for Fannie and Freddie which of course just bailed out investors and bankers not only in the U.S. but around the world.

Americans seem more than willing to bear this cost at this point…until of course we can’t sell any more debt.

This is an interesting interview with Fortune Magazine.   One of the things he is contemplating is Americans’ changing attitude toward housing.   While many still see their home as a potential investment vehicle he believes that may be changing.  He also asks why does the Federal Government, via Fannie Mae and Freddie Mac, continue to subsidize McMansions by their purchasing of mortgages in the secondary market?

He does mention that he thinks we’re near the bottom, but there is a chance for another leg down in pricing depending upon activity this summer.  I don’t know that he knows any more than anyone else as far as the direction of housing, but it’s interesting to read his perspective given his clout in the research world for housing.

As we start to see these statistics rise, what I am finding more than price appreciation is that it is a matter of the buying public starting to gain confidence to be able to purchase higher and higher priced homes.    Last year, so much of the activity was for homes priced under $250,000 and particularly under $200,000.   This year we are starting to see improvement in activity in homes priced between $250,000 – $500,000.

According to the article, Hustler Turf Equipment makes a model called the “Super Z” which costs about $10,000.   It’s designed for commercial use but homeowners are buying this muscle mower.  Adam Mullet, Director of Marketing is quoted as saying that customers, “simply want the biggest, baddest mower on the block.”

I have not seen one of these yet.  For the most part, I live in a neighborhood where people generally will hire a professional mowing crew to take care of the job.   As for me, I still have my trusty 7 year old trusty Toro mower than I occassionally have to use if for some reason my son is not able to cut the grass.

It’s very disturbing to see the oil start to wash up on those beautiful beaches in the gulf.   I can’t image what those who live and work in the region are going through seeing their businesses, livelihoods, and property get wiped out by this disaster.  It has become an unimaginable disaster that BP nor the Federal Government seems to be able to solve at this point.

Pulte has begun a project across from Wayzata High School and they have announced a new project in Plymouth west of Vicksburg and south of County Road 47.  When I get the details of that project, I will post them.   In addition, lots of earth is being moved around on the west side of Vicksburg about a 1/2 mile south of County Road 47.

I’ve also heard Lennar is planning on developing a parcel in Medina now where they will put in approximately 150 homes.   It almost sounds like the good ole days are back!   They aren’t really because if this were 2005-2007, the only homes going up would be priced between $750-$900k.   Now they are building most of these homes between $400-$600k.   Granted, the homes aren’t as nice, but they have figured out what the buying public is willing to purchase in the new environment.

The median home price in the Twin Cities is $168,000 according to the latest statistics from the Minneapolis Area Association of Realtors.   This means on average, the costs to attain an FHA loan just went up about $1,600 if this bill passes.

There is no housing market without the FHA – not in the Twin Cities.   If the FHA implodes we will see another down leg in home prices.