TCG Real Estate

Median Sales Price for Kane

2011-09-13T20:51:00.000-05:00

It's NOT the end of the world...

2011-06-14T08:50:00.001-05:00

Latest Report from NAR - Existing-Home Sales Rise Again in January

2011-02-23T16:45:00.001-06:00

This was just shared with us by Fran Broude, President & COO, Coldwell Banker Residential Brokerage.

Existing-Home Sales Rise Again in January
WASHINGTON (February 23, 2011) – The uptrend in existing-home sales continues, with January sales rising for the third consecutive month with a pace that is now above year-ago levels, according to the National Association of Realtors®.
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.
Lawrence Yun, NAR chief economist, said the improvement is good but could be better. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”
A parallel NAR practitioner survey2 shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place.
Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers. All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010.
“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.
All-cash purchases are at the highest level since NAR started measuring these purchases monthly in October 2008, when they accounted for 15 percent of the market. The average of all-cash deals was 20 percent in 2009, rising to 28 percent last year.
The national median existing-home price3 for all housing types was $158,800 in January, down 3.7 percent from January 2010. Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the median price is being dampened by unusual market factors. “Unprecedented levels of all-cash purchases, primarily of distressed homes sold at deep discounts, undoubtedly pulls the median price downward,” Phipps said. “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.”
Total housing inventory at the end of January fell 5.1 percent to 3.38 million existing homes available for sale, which represents a 7.6-month supply4 at the current sales pace, down from an 8.2-month supply in December. The inventory supply is at the lowest level since December 2009 when there was a 7.3-month supply.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.76 percent in January from 4.71 percent in December; the rate was 5.03 percent in January 2010.
Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.69 million in January from 4.58 million in December, and are 4.9 percent higher than the 4.47 million level in January 2010. The median existing single-family home price was $159,400 in January, down 2.7 percent from a year ago.
Existing condominium and co-op sales increased 4.7 percent to a seasonally adjusted annual rate of 670,000 in January from 640,000 in December, and are 7.9 percent above the 621,000-unit pace one year ago. The median existing condo price5 was $154,900 in January, which is 10.2 percent below January 2010.
Regionally, existing-home sales in the Northeast fell 4.6 percent to an annual pace of 830,000 in January from a spike in December and are 1.2 percent below January 2010. The median price in the Northeast was $236,500, which is 4.0 percent below a year ago.
Existing-home sales in the Midwest rose 1.8 percent in January to a level of 1.14 million and are 3.6 percent above a year ago. The median price in the Midwest was $126,300, which is 3.2 percent below January 2010.
In the South, existing-home sales increased 3.6 percent to an annual pace of 2.02 million in January and are 8.0 percent higher than January 2010. The median price in the South was $136,600, down 2.1 percent from a year ago.
Existing-home sales in the West rose 7.9 percent to an annual level of 1.37 million in January and are 7.0 percent above January 2010. The median price in the West was $193,200, down 5.7 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also tracks monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the local association of Realtors®.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

Also released today are historic data revisions. Each February, NAR Research incorporates a normal review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2008 through 2010, as well as the inventory month's supply data; most revisions are minor with little or no impact on previous characterizations of the overall market. There are no revisions to monthly home prices or raw inventory data (beyond normal prior-month revisions).

Note on Benchmark Revisions: All major statistical data series go through periodic reviews and revisions to ensure that sampling and methodology keep up with changes in the market, such as population changes in sampled areas, to ensure accuracy; we have been examining the existing-home sales data for any issues since late 2010. NAR began its normal process for benchmarking sales earlier this year; there will be no change to median prices. In the past we’ve benchmarked to the decennial Census, most recently to the 2000 Census, because it included home sales data. However, the data are no longer included in the Census, so we’re looking at more frequent benchmarking using a new approach with independent sources to improve our process and modeling. As always, we are consulting with various outside housing economists, government agencies and academic experts for a consensus on the methodology; NAR is committed to providing accurate, reliable data. Publication of the revisions is expected this summer.

2Distressed sales, first-time buyers, investors, all-cash transactions and data for contract cancellations, etc., are from a survey for the Realtors® Confidence Index, scheduled to be posted March 14.

3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

5Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for February will be released March 21, the Pending Home Sales Index for February is scheduled for March 28, and the 2010 Vacation and Investment Home study will be published March 30; release times are 10:00 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

Mortgage Distress, Short Sales, & Foreclosure

2010-11-17T12:58:00.001-06:00

With the Holidays fast approaching, Mortgage Distress will weigh heavily on the minds, hearts, & Homes of many...

Early warning Signs for distress:
-Rising Debt
-Job Loss
-Illness
-Divorce
-Death
-ARM Adjustment
-Major Expense
-Excessive Debt

Strategies to Avoid Foreclosure
-Be Proactive
-Contact the Lender
-Read the Mail
-Contact HUD
-Prioritize Expenses
-Generate Cash
-Dont get scammed
-CONTACT A REALTOR ASAP!

If you or anyone you know are experiencing any of signs for mortgage distress, please contact us for additional support.

The Cadwallader Group
Coldwell Banker Res., NRT, LLC, EHO

2010-07-25T12:16:00.001-05:00

2010-07-25T00:50:00.001-05:00

St. Charles, IL Real Estate for Sale - 4n338 Booth Tarkington - The Cadw...

2010-06-27T18:59:00.000-05:00

Home sales surge in April; prices lag again

2010-05-28T07:39:00.001-05:00

Home sales surge in April; prices lag again

By JONATHAN BILYK - jbilyk@kcchronicle.com

April proved to be yet another good month for home sales in the Fox Valley.

However, while the number of homes sold surged yet again, the prices fetched by sellers continued to lag behind....
Entire article @
http://www.kcchronicle.com/articles/2010/05/25/99665870/index.xml

I truly believe we will see a tremendous slowdown in the overall market and a complete lack of activity in the homes priced over $600,000.

It will not stay bad for very long, as by this time next year, we will see steady, reasonable activity in most price ranges.

With May activity nearing a crawl, the data from April is out.

2010-05-25T07:37:00.003-05:00

Here is a message from our President, Fran Broude:

Existing-Home Sales Continue to Improve in April

WASHINGTON (May 24, 2010) – Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors®.

Existing-home sales(1), which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.

Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.

Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply(2) at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008.

“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”

The national median existing-home price(3) for all housing types was $173,100 in April, up 4.0 percent from April 2009. Distressed homes accounted for 33 percent of sales last month, compared with 35 percent in March.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some Realtors® tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months.

“Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said.

A parallel NAR practitioner survey(4) shows first-time buyers purchased 49 percent of homes in April, up from 44 percent in March. Investors accounted for 15 percent of transactions in April, down from 19 percent in March; the remaining sales were to repeat buyers. All-cash sales stood at 26 percent in April; they were 27 percent in March.

Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5 percent above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5 percent from a year ago.

Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains.

Existing condominium and co-op sales jumped 9.1 percent to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3 percent above the 506,000-unit pace in April 2009. The median existing condo price(5) was $171,000 in April, which is 0.6 percent below a year ago. Regionally, existing-home sales in the Northeast surged 21.1 percent to an annual level of 1.09 million in April and are 41.6 percent higher than a year ago. The median price in the Northeast was $243,000, up 2.1 percent from April 2009.

Existing-home sales in the Midwest rose 9.9 percent in April to a pace of 1.33 million and are 29.1 percent above a year ago. The median price in the Midwest was $146,400, up 5.8 percent from April 2009.

In the South, existing-home sales increased 8.6 percent to an annual level of 2.14 million in April and are 23.0 percent higher than April 2009. The median price in the South was $150,000, up 1.2 percent from a year ago.

Existing-home sales in the West fell 6.2 percent to an annual rate of 1.21 million in April but are 5.2 percent above a year ago. The median price in the West was $212,400, up 3.8 percent from April 2009.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for 20 select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the
local association of Realtors®.

(1)   Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

(2)   Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

(3)   The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

(4)   First-time buyer and distressed sales data are from the Realtors® Confidence Index.

(5)   Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for May will be released June 22. The next Pending Home Sales Index is scheduled for June 2; release times are 10 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

Fran Broude
President/COO
Coldwell Banker Residential Brokerage

Good News for Chicagoland

2010-04-26T16:05:00.004-05:00

A message sent over from the President of Coldwell Banker Residential Brokerage, Fran Broude.

From Crain's:
Chicago-area home prices show first signs of recovery after three-year slide
By Alby Gallun
April 26, 2010
Home prices are rising again in some Chicago-area neighborhoods, in a sign that the local housing market is nearing the end of a devastating three-year slide.
Single-family home prices rose in 56 of 253 Chicago-area ZIP codes last year, according to Fiserv Inc., which calculates the widely followed Case-Shiller Home Price Index. It's the first gain since 2006 in any of the local ZIP codes Fiserv tracks.
Declines slowed sharply across the region, suggesting the worst erosion of home values is over. Prices in the area fell 2.8% last year, compared with 16.3% in 2008.
The data, provided exclusively to Crain's, offer the most detailed and accurate survey of single-family home prices. Fiserv tracks price changes at the ZIP-code level and compares repeat sales of the same properties.
The numbers reveal an uneven recovery, with gains concentrated in neighborhoods hit early by the foreclosure crisis. Double-digit declines continue in outlying suburbs.
It's "very good news" that the market "is beginning to show signs of stability in selected areas," Schaumburg-based housing consultant Tracy Cross says. "On the negative side, you still have areas that are saturated with a high number of foreclosures."
As prices approach a bottom, it's possible to start assessing the damage. Parts of metropolitan Chicago have seen a decade or more of home price appreciation erased in three years. At the end of 2009, the local price index had plunged 25.8% from its peak in the first quarter of 2007 to its level in first-quarter 2003.
ANOTHER SLIP
Home values aren't expected to regain much ground soon. Fiserv predicts Chicago-area prices will slip another 2.6% this year and rise just 0.2% in 2011.
Falling prices, low interest rates and the federal housing tax credit have helped boost demand, but generally not enough to offset high foreclosure rates and the miserable job market.
"Until we start creating jobs on a regular basis, I don't think (the market) is going to turn around," says Prudential Rubloff agent James Horwath of Chicago. "I think it's going to be another tough year still."
Over the past three years, prices fell in every ZIP code Fiserv tracks, but some areas weathered the slump better than others. The picture is bleak in suburbs like Cicero and South Side neighborhoods like South Shore, which have suffered drops exceeding 40% since 2006. Homeowners from the Gold Coast north to Uptown fared the best, with declines ranging from 11% to 15.3%.
But buyers are "finally getting off the fence," says Jennifer Ames, a Coldwell Banker agent who works in affluent North Side neighborhoods like Lincoln Park and Lakeview.
Ms. Ames brought a four-bedroom brick Victorian at 852 W. Webster Ave. to the market on Feb. 22 with an asking price of $1.4 million. A buyer signed a contract on the house three weeks later.
"We're definitely seeing the spring market we didn't see last year," Ms. Ames says, declining to disclose the sale price.
While prices fell slightly on her turf last year — the 60614 ZIP code sustained a 2.5% drop — they surged in the least likely of places: economically depressed Chicago neighborhoods like Austin, which saw a 20.2% gain, and south suburban Harvey, which led the market with a 28.4% increase.
It's unclear, bordering on inexplicable, why prices bounced back last year in communities with soaring unemployment and foreclosure rates, but one pattern is obvious: The ZIP codes that gained the most last year suffered some of the biggest price drops in 2008.
The same trend has emerged in other cities, Fiserv Vice-president David Stiff says. Though he hasn't studied the Chicago market, Mr. Stiff posits that foreclosure sales in prior years may have depressed values in some ZIP codes so much that prices are surging as distressed sales taper off and the market starts returning to normal.
HOLDING OFF
James Shilling, director of DePaul University's Institute for Housing Studies, says lenders that foreclosed on homes in the most distressed areas are holding off on selling those properties so as not to flood the market and depress prices.
Whatever the reason, it will be several years before homeowners in many ZIP codes get back to boom-era prices. Home values in some south suburbs are down to 1998 to 2000 levels, according to Wisconsin-based Fiserv. Crete was the biggest long-term loser, notching price declines of 5.3% over the past decade, while Lincoln Square led the Chicago market with a 10-year gain of 72.2%.
Last year, single-family home values rose 1.2% in Lincoln Square's 60625, one of 56 local ZIP codes to notch a gain, according to Fiserv. Other winners included Oak Park's 60302, with a 4.2% increase; 60618, covering Irving Park and Avondale, 4.1%, and 60640 in Edgewater and Uptown, 2.1%.
Though some areas may be close to turning a corner, they don't include distant suburbs like Waukegan, Round Lake and Zion, which suffered double-digit declines last year. Prices fell 10.2% in west suburban Yorkville, where foreclosures and overdevelopment have depressed prices.
The Yorkville market, says Century 21 Pro-Team agent Kathy Grabow of Aurora, "just got caught with overbuilding."

Strong Gains in Re-Sale Home Sales

2010-02-16T19:37:00.001-06:00

Fourth Quarter Existing-Home Sales Surge in Most States, Prices Up in More Areas
WASHINGTON (February 11, 2010) – Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of RealtorsÒ.
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
In the fourth quarter, 67 out of 151 metropolitan statistical areas2 reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.

Fourth Quarter Metro Prices/State Resales – add 1

“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.
“The biggest issue is for repeat buyers, who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a RealtorÒ now about qualification criteria and options in your area,” Golder said.
Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.
Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.
“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun said. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”
In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.
Yun said markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he said.

Fourth Quarter Metro Prices/State Resales – add 3

In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.
“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: Data tables for both metro area home prices and state existing-home sales are posted at:
www.realtor.org/research/research/metroprice. For areas not covered in the tables, please contact the local association of Realtors®.
There often are differences between NAR’s data and locally reported data because of differences in methodology, which may include the geographic coverage area, housing types, and Census benchmarking used in NAR’s model. More importantly, there is a parallel between the percentage changes over time that is typically seen even when using different methodologies.

1The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing. NAR began tracking the state sales series in 1981.
Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.

2Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. A list of counties included in MSA definitions is available at:
www.census.gov/population/estimates/metro-city/0312msa.txt
Regional median home prices include rural areas and samples of many smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.
NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989.
Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.

First quarter metro area home price and state resale data will be released May 11 at 10 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

Fran Broude
President/COO

Earthquake Near Geneva

2010-02-10T04:32:00.000-06:00

"Long-Time Homeowner" Homebuyer Tax Credit Clarification

2010-02-09T17:39:00.003-06:00

CNBC – Big Banks, Short Sales, Kick Backs and Fraud

2010-02-04T19:53:00.000-06:00

CNBC – Big Banks, Short Sales, Kick Backs and Fraud

Tax Credit Clarification

2009-12-14T15:48:00.001-06:00

By Kenneth R. Harney
December 4, 2009
Chicago Tribune

If you're thinking about applying for the new $6,500 homebuyer federal tax credit or the extended $8,000 version, here's some news: The IRS has just issued its first formal guidelines for you.

Tops on the agency's list of advice: Cool it for a couple of weeks. Even if you qualify for one of the credits, don't send in any requests to the IRS quite yet. Wait until later this month when the agency publishes its revised Form 5405 with all the key instructions needed to get you a check from the government.

The forthcoming version of the form will incorporate the major changes to the tax credit program made by Congress in legislation signed by President Obama on Nov. 6. These include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents, among others.

In a tax bulletin issued just before Thanksgiving, the IRS emphasized that all home purchasers after Nov. 6 "must use this new version (of Form 5405) to claim the credit." Put another way: If you send in the old version, which happens to be the one you can currently download from the agency's Web site, www.irs.gov, your request for the credit is likely to go nowhere.

The legislation, known as the Worker, Homeownership and Business Assistance Act of 2009, extended the $8,000 first-time home purchaser credit until April 30, 2010, for signed contracts, and June 30, 2010, for closings. The law also created a new tax credit for people who've owned a principal residence for a consecutive five of the previous eight years, and who purchase a replacement principal residence with a signed contract no later than next April 30, followed by a closing no later than June 30.

Qualified repeat buyers can obtain credits up to $6,500. For both the first-time and repeat buyer program, the credit is equal to 10 percent of the purchase price of the house, up to a maximum of either $6,500 or $8,000.

The new IRS bulletin also outlined the agency's guidance on other important features of the amended credit program:

--Members of the armed forces, plus diplomatic and intelligence personnel who are in service in foreign countries, will get an extra year to buy a principal residence and still qualify for a credit. They will have until April 30, 2011, to enter into a binding contract to purchase a house, and until June 30, 2011, to close on it.

--Anyone who buys a house after Nov. 6 -- even those who had intended to get in the door before the previous Nov. 30 expiration date for the $8,000 credit -- will now need to comply with several new rules. First, the house cannot cost more than $800,000. Second, no one under the age of 18 can claim the credit, no matter what the circumstances. And finally, anyone who is counted as a dependent on another taxpayer's federal filings is ineligible for a home purchase tax credit.

--The expanded income limits for purchasers after Nov. 6 range to $125,000 in "modified adjusted gross income" for single taxpayers, and to $225,000 for those who file jointly. Singles with incomes between $125,000 and $145,000 may be eligible for phased-down credit amounts, as are joint filers with incomes from $225,000 to $245,000. Anyone with an income above these amounts cannot qualify for either of the credits. Under the pre-Nov. 6 rules, by comparison, taxpayers applying for the $8,000 credit were limited to incomes of $75,000 (single filer) to $150,000 (joint filer).

The IRS continues to offer detailed consumer information resources on the credits, including questions and answers on a variety of home purchase scenarios.

For example, some taxpayers seeking the extended $8,000 credit are uncertain about co-purchase and co-signing situations, especially involving parents and adult children. When a homeowning parent co-signs for a mortgage with a son or daughter, and both names appear on the note, can the son or daughter qualify for the first-time purchaser credit?

The IRS says the parent clearly does not qualify for any portion of the credit since he or she already owns a principal residence. But if the son or daughter has not owned a house during the three years preceding the current purchase, and qualifies on income, he or she can be allocated the entire $8,000 credit.

Similarly, when unmarried individuals co-purchase a house, and only one of them is eligible for the credit, the full $8,000 can be allocated to the eligible buyer. The ineligible co-purchaser, in other words, does not spoil the deal -- as long as none of the credit goes to that person.

Washington Post Writers Group

Chicago-area home sales soar in October

2009-11-24T00:16:00.000-06:00

Chicago-area home sales soar in October

By: Staff Nov. 23, 2009
(Crain's) — Chicago-area home sales jumped by a third in October compared to a year ago, according to the Illinois Assn. of Realtors, with the group citing lower home prices, low mortgage rates and the federal tax credit for first-time buyers as reasons for the spike.

Last month’s surge compared to October 2008 was the fourth straight monthly year-over-year improvement for the metro area and by far the biggest.
Sales in the city of Chicago also rose 28.5% last month, the second straight year-over-year rise, the association said in a release Monday.

Sales rose 24.2% statewide compared with October 2008.

“October's extraordinary sales totals reflect home purchases by many buyers who were sitting on the sidelines of the housing market waiting out the economic downturn as well as more home sellers coming to terms with accurate pricing given the market conditions,” Mike Onorato, president of the association, said in the release.

In the nine-county Chicago region, 7,286 single-family homes and condominiums were sold October, up 33.3% from 5,467 sales in October 2008, the Realtors group said. The monthly year-over-year percentage gain was much bigger than the previous three straight increases of 0.3% in July, 1.3% in August and 5.9% in September.

In the city, sales rose 28.5%, with 2,012 in October, up from 1,566 in October 2008. That easily topped last month’s 5.8% year-over-year monthly increase, which was the first since May 2006.

Median prices fell again year-over-year in the Chicago area and the city, as sales of distressed property pushed down the figure. The region’s median price — where half the homes sold for more and half sold for less — was $190,000 in October, down 15.6% from October 2008, the Realtors association said.

In the city, the median price was $215,000 in October, down 18% from last year.

"The first-time homebuyer tax credit has created a great incentive for buyers on the fence who are ready to invest in real estate,” Genie Birch, president of the Chicago Assn. of Realtors, said in the release.

But the Chicago association used the release to complain about tight residential lending policies, which need to be changed to help “creditworthy homebuyers.”

Good-credit buyers are finding it “very difficult” to get financing, and Chicago Realtors would welcome banks showing more willingness to lend to good prospects, says a spokeswoman for the Chicago association. Also, various guidelines make it harder to get loans for condos in the city than for unattached single-family homes, according to the spokeswoman.

President Obama signed a bill this month extending the tax credit for first-time homebuyers and expanding it to include a smaller credit for some buyers who already own their homes. Currently, first-time buyers whose incomes qualify now can receive a credit of up to $8,000 on home purchases that close by June 30.

Last month, the average interest rate was 5.0% for a 30-year fixed-rate mortgage, according to the release.

The Illinois Assn. of Realtors' sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

New Listing in Batavia Backs to Open Space

2009-11-12T13:18:00.004-06:00

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Insulation Goes Natural - Courtesy of "Mr. Home Inspector" Joe Schmalz

2009-11-05T20:14:00.007-06:00

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Homebuyer Tax Credit Extended

2009-11-05T17:39:00.001-06:00

Today, the U.S. House of Representatives voted by an overwhelming 403-12 margin to approve the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit. The bill already passed in the U.S. Senate yesterday, so now it will advance from Congress to the White House for President Obama’s signature. The Administration already has signaled its support of the Homebuyer Tax Credit amendment as well as the President’s intention to sign the bill into law.

This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in NRT’s numerous legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.

Senator Johnny Isakson (R-Ga.), the chief architect of the Homebuyer Tax Credit legislation, made a short speech on the floor of the U.S. Senate shortly before his colleagues voted 98-0 to pass the bill on November 4th. In his remarks, Sen. Isakson made a point of thanking a handful of key individuals who were critical to the success of this bipartisan effort: Senate Majority Leader Harry Reid (D-Nev.), Senate Finance Committee Chairman Max Baucus (D-Mont.), Sen. Christopher Dodd (D-Conn.), his own lead staffer, Chris Cook, and Realogy’s CEO:

“Lastly, but not least, I want to thank Mr. Richard Smith, a private citizen, a person in the housing industry who has dedicated countless hours in the last month to help educate people on the positive effects of what we are about to do and will take place,” said Isakson.

On behalf of the entire NRT organization, I would like to personally add our thanks to Richard and Realogy for his exceptional leadership, determination and dedication to making the extension and expansion of the Homebuyer Tax Credit a reality. I think you will all agree that Sen. Isakson’s remarks are a clear validation of what we at NRT already know — that there is not another real estate company or franchisor in the world that can lay claim to such influential and effective leadership on the issues affecting our industry, and your businesses, as can Realogy.

Again, we are now one step away from this bill becoming law. Once that occurs, we will immediately update the respective brand web sites with detailed information for your sales associates and all homebuyers and sellers.

In closing, I’d like to reiterate that our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified home buyers in the first half of 2010 undoubtedly will benefit our business and the U.S. economy.

Best regards,

Bruce Zipf
President & CEO

NRT LLC

Message From Coldwell Banker's President/COO

2009-10-27T15:26:00.002-05:00

Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum
WASHINGTON (October 23, 2009) – Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors ® .
Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate 1 of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.
Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun , NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax
credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and
help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully
remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors ® Profile of Home Buyers and Seller s , shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey
shows that distressed homes accounted for 29 percent of transactions in September.
NAR President Charles McMillan , a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970,
but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said.
“Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply 2 at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.
“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.
The national median existing-home price 3 for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which
is 8.1 percent below a year ago.
Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price 4 was $175,100 in September, down 11.7 percent from
September 2008.
Regionally, existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.
Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.
In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.
Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.
The National Association of Realtors ® , “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, and is posted with other tables at: www.realtor.org/research/research/ehsdata . For information on areas not included in the report, please contact the local
association of Realtors ® .

1 The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in
resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it
is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically
are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons
for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.

3 The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort
median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4 Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for October will be released November 23. The next Pending Home Sales Index is scheduled for November 2. NAR’s quarterly report on metro area home prices and state home sales is on November 10; release times are 10 a.m. EST.

Information about NAR is available at www.realtor.org . This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

Fran Broude
President/COO

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2009-10-15T19:09:00.002-05:00

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2009-10-15T19:07:00.000-05:00

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2009-10-15T19:05:00.001-05:00

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2009-10-15T18:59:00.000-05:00

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2009-10-15T18:58:00.001-05:00

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2009-10-15T18:54:00.001-05:00

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2009-10-15T18:44:00.001-05:00

2197 Colorado Ave in Elgin

2009-10-15T18:40:00.002-05:00

Rent The Top Floor for the NFL Season…

2009-08-16T17:01:00.000-05:00

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May God be With and Bless You,

David L. Boege
Certified Public Accountant
232 South Batavia Avenue (aka US Route 31)
Batavia, Illinois 60510
Office Telephone: (630) 326-9955
Mobile Telephone: (312) 543-1991
Electronic Facsimile: (630) 225-5078
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Mortgage Industry Insight

2009-08-11T15:51:00.000-05:00

Fannie Mae’s Guideline Changes May Affect Corporate Transferees’ Purchasing Power; Ris Media
If you serve the corporate relocation market you may be aware of yet another challenge this population faces. Because of changes announced in June by Fannie Mae (FNMA), the largest mortgage purchaser in the country, transferring families’ purchasing power could be significantly impacted. FNMA’s June 8th Announcement cites it will now disallow inclusion of secondary wage earner’s projected income in loan qualifying income ratios. Fannie Mae has in the past allowed “trailing secondary wage earner income” when determining housing affordability prior to a spouse or partner securing a position in the new location, but has now eliminated this policy.

Is the Pipeline Clogged for Refinancing Homeowners?; Ris Media
Borrowers are waiting an unusually long time to close on mortgage refinance loans because thinly staffed banks can’t handle surges in volume when rates dip, mortgage experts say. Also, lenders are giving applications closer scrutiny and requiring more documentation of income and assets to avoid repeating past mistakes. This has further crimped the pipeline, as have new appraisal rules that add a layer of red tape for many loans.

The Next Fannie Mae; Wall Street Journal
Critics of the expanded role of the FHA in residential finance are worried that Ginnie Mae, which guarantees FHA loans and packages them into securities, is too exposed to mortgages they label as subprime given that the FHA offers loans with 3.5 percent down payments to borrowers with below-average to poor credit ratings. Ginnie Mae issued $43 billion in mortgage-backed securities in June alone, and experts say its mortgage exposure will surpass $1 trillion by the end of 2010. Critics point out that FHA loans have a default rate of 7 percent, according to a June report from HUD's inspector general, and that struggling homeowners with 25 percent negative equity still qualify for refinancing under the Home Affordable Modification Program even though they are statistically likely to re-default.

As sent via email from Coldwell Banker Home Loans, PHH Home Loans

Local Severe Weather Alert for Geneva, IL (60134)

2009-08-08T18:29:00.000-05:00

Local Severe Weather Alert for Geneva, IL (60134)

...HEAT ADVISORY IN EFFECT FROM NOON CDT /1 PM EDT/ TO 7 PM CDT /8 PM EDT/ SUNDAY... THE NATIONAL WEATHER SERVICE IN CHICAGO HAS ISSUED A HEAT ADVISORY...WHICH IS IN EFFECT FROM NOON CDT /1 PM EDT/ TO 7 PM CDT /8 PM EDT/ SUNDAY. TEMPERATURES WILL CLIMB INTO THE MIDDLE 90S SUNDAY AFTERNOON. THE HEAT COMBINED WITH HIGH HUMIDITY WILL CREATE HEAT INDEX VALUES AROUND 105 DEGREES. IN ADDITION...NIGHTTIME TEMPERATURES WILL ONLY DIP INTO THE 70S WITH VERY MUGGY CONDITIONS BOTH TONIGHT AND SUNDAY NIGHT. CLOUDS AND AN INCREASING CHANCE FOR THUNDERSTORMS WILL ALLOW THE HEAT TO EASE A BIT ON MONDAY. A COLD FRONT IS EXPECTED TO MOVE THROUGH THE AREA BY MONDAY NIGHT ALLOWING COOLER AND LESS HUMID CONDITIONS BY TUESDAY. PRECAUTIONARY/PREPAREDNESS ACTIONS... A HEAT ADVISORY MEANS THAT A PERIOD OF HOT TEMPERATURES IS EXPECTED. THE COMBINATION OF HOT TEMPERATURES AND HIGH HUMIDITY WILL COMBINE TO CREATE A SITUATION IN WHICH HEAT ILLNESSES ARE POSSIBLE. DRINK PLENTY OF FLUIDS...STAY IN AN AIR-CONDITIONED ROOM...STAY OUT OF THE SUN...AND CHECK UP ON RELATIVES AND NEIGHBORS.

Uptrend Continues in Pending Home Sales

2009-08-04T18:26:00.001-05:00

WASHINGTON (August 4, 2009) – Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®. The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003. Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.” The Pending Home Sales Index in the Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago. In the Midwest the index increased 0.8 percent to 89.9 and is 11.6 percent above June 2008. The index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago. In the West the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008. NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said. NAR’s Housing Affordability Index2 remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7 percent of gross income to mortgage principal and interest, well below the standard allowance of 25 percent. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. “A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.” A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600. Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.” The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #1The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales. 2The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers. The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income. Monthly publication of the index began in 1981 with annual data calculated back to 1970. Existing-home sales for July will be released August 21; the next Pending Home Sales Index will be on September 1. Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

Kenneth R. Trepeta Esq.Director - Real Estate Services
National Association of REALTORS
500 New Jersey Avenue, N.W.Washington, D.C. 20001

2009-07-13T18:50:00.001-05:00

Geneva and the area surrounding have miles of bike & walking paths, lots of natural areas, plenty of parks...and much more. Each neighborhood has it's own unique offering with it's own wonderful features. The following link just happens to be one of the tranquil scenes I get to pass by each day. http://www.youtube.com/watch?v=tBslAhh2L04

It's a wonderful suburban life!

2009-07-03T16:12:00.001-05:00

Just updated! Our IPhone app is even better now. http://appshopper.com/business/the-cadwallader-group.
View our Twitter, Facebook, & YouTube pages...all from the same application. Send us feedback instantly on a property. Amazing and easy to use.

2009-05-28T21:01:00.001-05:00

Blogging from my phone?!

Information at your fingertips. As the work continues to keep us busy in the field, we are hard pressed for enough time to sit in front of the computer to blog these days. So here is a late night thought from the mobile office...when someone asks when will the market "turn around" or "Come Back" ???

...I have to qualify that question with a dignified response....

"What do you mean by that?"

In other words, what is your definition of "Turn Around" or "Come Back"? Is the cessation of downward trending prices? Is it the end of saturation of inventory? Is it merely the perception that the "doom & gloom" is behind us and people truly believe it's OK to make a commitment to move forward with a Real Estate decision?

So I ask you....what is your definition of a "Turn Around" or "Come Back"?

2009-05-14T13:03:00.001-05:00

Just a thought--if we wait until the market is at the bottom to buy, the market will be headed back up. Prices are at an all time low now and interest rates are very favorable. Savvy buyers are out and about choosing their next home right now. They're looking for homes that are in move in condition, with neutral decor and priced right.

First Impressions Do Count!

2009-05-04T10:49:00.000-05:00

Thank you Dick Greenwood, Coldwell Banker Builder Marketing Broker for this one!

"Michigan State University conducted a study that estimated that good landscaping adds 6% to 11% to the eventual sales price of a home."

With spring here, now is the perfect time to put in fresh mulch, replace dead or dying trees and bushes and add fresh blooms to your yard to enhance the curb appeal. This proves it's worth it.

Exceptional Value in Geneva

2009-05-01T13:30:00.000-05:00

$150,000 Less than owner Paid! $100,000 in Upgrades Added by Owner AND Substantial Tax reduction for 2009! Relocated owner Motivated!Geneva, IL

http://www.thecadwalladergroup.com/