Daily Real Estate News July 20, 2009
Housing Experts: Now Is a Perfect Time to Buy
Now is the time to buy, but that opportunity may be slipping away. For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek. He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Saturday, July 25, 2009
Sunday, July 19, 2009
Pending Home Sales Record Fourth Straight Monthly Gain
Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the latest survey. The Pending Home Sales Index increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004. Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
Wednesday, July 15, 2009
Home Warranty - Should I have one?
Home warranties not only protect the buyers and sellers in a transaction; they also assist everyone in getting to the closing table more quickly and smoothly. Here's a look at some tips and advice for understanding the benefits of purchasing a home warranty:
Peace of mind for buyers
Most warranties provide coverage against mechanical failures for many major systems and appliances in a newly purchased home. Oftentimes, the coverage extends to items that most homeowners' insurance policies won't cover, leaving buyers in a sticky spot.
Buying a home with a warranty helps avoid closing delays when an appliance or water heater, for example, breaks down. Plus, buyers can opt to renew the warranty after the first year and extend the coverage – and their peace of mind – on one of their biggest investments.
Home warranty companies require only a standard deductible per service call on covered components. Plus, customers can reach someone 24 hours a day, 7 days a week to ensure that an appliance or system breakdown doesn't become a major catastrophe.
When representing buyers, I always ask for a home warranty in the initial offer and I have never had the experience of a seller saying no.
Sellers can list with confidence
Many sellers are facing negative equity, declining home values and fierce competition from distressed properties. Offering a home warranty on their listing helps set it apart from the competition and make it a more attractive option to homebuyers.
According to a recent study by on home warranty company, homes with a home warranty sold an average of 23 days faster and closer to the list price – an average of 4 percent higher at closing.
At least one home warranty company offers a plan to the seller which covers the home at no cost during the listing period and is only paid for at closing. The warranty then covers the buyer for 13 months. This is outstanding coverage for both parties and since I am going to ask for it on behalf of the buyer, it only makes sense that the seller should have it in place and also enjoy the benefits.
Home warranties crucial for distressed properties
Nearly half of the listings on the market today are distressed properties. That means many homes are left in less than presentable condition. Whether it is a bank-owned listing, a seller who's upside down in a short sale, or a buyer looking at REO properties, a home warranty protects everyone if an appliance or system in a vacant home fails.
In a majority of the areas throughout the U.S., basic plans from some companies cover unknown pre-existing conditions, lack of maintenance, sediment, rust and corrosion, and many other critical mechanicals that homeowners find themselves dishing out cash for these days."
So whether you are buying or selling, it makes good sense to have a home warranty.
Peace of mind for buyers
Most warranties provide coverage against mechanical failures for many major systems and appliances in a newly purchased home. Oftentimes, the coverage extends to items that most homeowners' insurance policies won't cover, leaving buyers in a sticky spot.
Buying a home with a warranty helps avoid closing delays when an appliance or water heater, for example, breaks down. Plus, buyers can opt to renew the warranty after the first year and extend the coverage – and their peace of mind – on one of their biggest investments.
Home warranty companies require only a standard deductible per service call on covered components. Plus, customers can reach someone 24 hours a day, 7 days a week to ensure that an appliance or system breakdown doesn't become a major catastrophe.
When representing buyers, I always ask for a home warranty in the initial offer and I have never had the experience of a seller saying no.
Sellers can list with confidence
Many sellers are facing negative equity, declining home values and fierce competition from distressed properties. Offering a home warranty on their listing helps set it apart from the competition and make it a more attractive option to homebuyers.
According to a recent study by on home warranty company, homes with a home warranty sold an average of 23 days faster and closer to the list price – an average of 4 percent higher at closing.
At least one home warranty company offers a plan to the seller which covers the home at no cost during the listing period and is only paid for at closing. The warranty then covers the buyer for 13 months. This is outstanding coverage for both parties and since I am going to ask for it on behalf of the buyer, it only makes sense that the seller should have it in place and also enjoy the benefits.
Home warranties crucial for distressed properties
Nearly half of the listings on the market today are distressed properties. That means many homes are left in less than presentable condition. Whether it is a bank-owned listing, a seller who's upside down in a short sale, or a buyer looking at REO properties, a home warranty protects everyone if an appliance or system in a vacant home fails.
In a majority of the areas throughout the U.S., basic plans from some companies cover unknown pre-existing conditions, lack of maintenance, sediment, rust and corrosion, and many other critical mechanicals that homeowners find themselves dishing out cash for these days."
So whether you are buying or selling, it makes good sense to have a home warranty.
Maybe it is really a "Lender's Market"
A "Lender's Market"? What the heck is that?
A “Lenders Market” is typically where there is a large number of or a majority of the market is made up of distressed property sales where the owner is either in default of keeping the mortgage current or has already been foreclosed upon (Real Estate Owned or REO). A property is also said to be distressed if the value of the property is less than the mortgage or trust deed amount and the owners are unable to keep the mortgage current and want to sell the property. This is commonly known as a "Short Sale".
A "Lender's Market" might have a combination of many of these characteristics. Many of the buyers benefits in their offer to purchase are striped away including the pest inspection and clearance, closing costs, home warranties and repair requests with the lender opting to sell the property in it's present physical condition. Naturally there are exceptions to this depending on the Lender and whether the distressed property is a short sale or REO. By and large, lenders want the highest possible price with the least number of contingencies. Only Buyer’s with pre-approved loans are considered and in the case of REO’s, the lenders will give greater priority to All Cash offers over offers with financing even if the offering amount is slightly less. All Cash offers have less contingencies and can usually close faster clearing the asset from the lender’s books faster without any hassles or delays as may be occasioned by other banks that are providing the Buyer’s loan.
So depending on where you stand, it is either a "Buyer's Market" or a "Lender's Market". If you are trying to buy either and REO or a Short Sale, the terms are largely in the hands of the lenders, but the price is still clearly in the hands of the buyers. If you aren't in love with just any property, there can be some very significant buying opportunities in distressed properties, but there are also many potential pitfalls. You don't fall into a trap you can't get out of so this is the time to have an experienced team of real estate experts on our side. You can get that help at www.propertysiteonline.com
A “Lenders Market” is typically where there is a large number of or a majority of the market is made up of distressed property sales where the owner is either in default of keeping the mortgage current or has already been foreclosed upon (Real Estate Owned or REO). A property is also said to be distressed if the value of the property is less than the mortgage or trust deed amount and the owners are unable to keep the mortgage current and want to sell the property. This is commonly known as a "Short Sale".
A "Lender's Market" might have a combination of many of these characteristics. Many of the buyers benefits in their offer to purchase are striped away including the pest inspection and clearance, closing costs, home warranties and repair requests with the lender opting to sell the property in it's present physical condition. Naturally there are exceptions to this depending on the Lender and whether the distressed property is a short sale or REO. By and large, lenders want the highest possible price with the least number of contingencies. Only Buyer’s with pre-approved loans are considered and in the case of REO’s, the lenders will give greater priority to All Cash offers over offers with financing even if the offering amount is slightly less. All Cash offers have less contingencies and can usually close faster clearing the asset from the lender’s books faster without any hassles or delays as may be occasioned by other banks that are providing the Buyer’s loan.
So depending on where you stand, it is either a "Buyer's Market" or a "Lender's Market". If you are trying to buy either and REO or a Short Sale, the terms are largely in the hands of the lenders, but the price is still clearly in the hands of the buyers. If you aren't in love with just any property, there can be some very significant buying opportunities in distressed properties, but there are also many potential pitfalls. You don't fall into a trap you can't get out of so this is the time to have an experienced team of real estate experts on our side. You can get that help at www.propertysiteonline.com
Well, it sure isn't a seller's market
In defining a "Sellers Market", there is a lower than usual and faster moving inventory with prices generally increasing and the Seller more clearly in control to determine the outcome of any successful effort to purchase. Buyer's tend to pay more ( often times more than property might be listed for). Many of the buyers contingencies are either eliminated or greatly reduced. The time for removal of contingencies is shortened. In some cases many of contingencies are negotiated way, such as a buyers typical request for repairs and the length of time the buyer has to obtain services such as appraisal and loan approval.
In a really hot “Seller’s Market”, buyers typically need more down payment and higher earnest money deposits that may be defaulted if the Buyer fails to consummate the transaction in the exact time frame as outlined in the purchase agreement.
Ah, the good old days, for sellers that is...but if you are a buyer....which many are and should be today with the low interest rates and $8,000 tax credit it's good news.
In a really hot “Seller’s Market”, buyers typically need more down payment and higher earnest money deposits that may be defaulted if the Buyer fails to consummate the transaction in the exact time frame as outlined in the purchase agreement.
Ah, the good old days, for sellers that is...but if you are a buyer....which many are and should be today with the low interest rates and $8,000 tax credit it's good news.
Is It A Buyer's Market?
In a “Buyer’s Market”, buyers tend to have greater control of the time frames and also many of the terms and conditions in the contract tend to favor their wants. Sort of a flip of what is found in the “Seller’s Markets”. In a “Buyer’s Market”, buyers typically pay less than they might in an active “Seller’s Market” and usually have a larger selection of properties to choose from.
What Do You Think?
What Do You Think?
Monday, July 13, 2009
VA Loan Eligibility - Do you qualify?
This is taken directly from the Department of Vetran Affairs
General Rules for Eligibility
Military Service Requirements for VA Loan Eligibility:
Note: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
Wartime - Service During:
WWII: 9/16/1940 to 7/25/1947
Korean: 6/27/1950 to 1/31/1955
Vietnam: 8/5/1964 to 5/7/1975
You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.
Peacetime - Service during periods:
7/26/1947 to 6/26/1950
2/1/1955 to 8/4/1964
5/8/1975 to 9/7/1980 (Enlisted)
5/8/1975 to 10/16/1981 (Officer)
You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.
Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)
If you were separated from service which began after these dates, you must have:
Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or
Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability;
Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.
Gulf War - Service during period 8/2/1990 to date yet to be determined
If you served on active duty during the Gulf War, you must have:
Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or
Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or
Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.
Active Duty Service Personnel
If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
Selected Reserves or National Guard
If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and
Were discharged with an honorable discharge, or
Were placed on the retired list, or
Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or
Continue to serve in the Selected Reserves
Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
You May also be determined eligible if you:
Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
Are a spouse of a serviceperson missing in action or a prisoner of war
Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.
Eligibility may also be established for:
Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.
Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.
General Rules for Eligibility
Military Service Requirements for VA Loan Eligibility:
Note: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
Wartime - Service During:
WWII: 9/16/1940 to 7/25/1947
Korean: 6/27/1950 to 1/31/1955
Vietnam: 8/5/1964 to 5/7/1975
You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.
Peacetime - Service during periods:
7/26/1947 to 6/26/1950
2/1/1955 to 8/4/1964
5/8/1975 to 9/7/1980 (Enlisted)
5/8/1975 to 10/16/1981 (Officer)
You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.
Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)
If you were separated from service which began after these dates, you must have:
Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or
Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability;
Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.
Gulf War - Service during period 8/2/1990 to date yet to be determined
If you served on active duty during the Gulf War, you must have:
Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or
Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or
Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.
Active Duty Service Personnel
If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
Selected Reserves or National Guard
If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and
Were discharged with an honorable discharge, or
Were placed on the retired list, or
Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or
Continue to serve in the Selected Reserves
Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
You May also be determined eligible if you:
Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
Are a spouse of a serviceperson missing in action or a prisoner of war
Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.
Eligibility may also be established for:
Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.
Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.
Illinois Prices and Sales Up according to Illinois Association of Realtors
Illinois Market Gets Moving with May Home Sales Up 19.3 Percent from April; Statewide Median Price at $158,000
SPRINGFIELD, Ill. — The month of May marked the fourth consecutive month-to-month increase in home sales for the Illinois housing market and the third monthly increase in the statewide median home sale price, according to the Illinois Association of REALTORS® latest report. Total home sales (which include single-family and condominiums) were up 19.3 percent in May 2009 to 8,945 homes compared to 7,501 homes sold in April 2009. Compared to a year ago, home sales were down 21.0 percent from May 2008 sales of 11,326.
The Illinois median price in May 2009 was $158,000, up 4.5 percent from $151,200 in April 2009; it was down 16.0 percent from $188,000 a year ago in May 2008. The median is a typical market price where half the homes sold for more, half sold for less.
“We are seeing more activity in the housing market with increased listings, more activity at showings, a surge in interest from first-time buyers as well as some improvement in time on market,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®. “First-time homebuyers who want to take advantage of the $8,000 tax credit need to be aware that the purchase has to close no later than November 30 given the December 1 cut-off under current guidelines by the federal government. That means being under contract by early fall.”
Adds Callan: “Mortgage interest rates are another factor for moving swiftly in this market. They remain at historic lows but where they will be in coming months is uncertain.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.89 percent in May 2009, up slightly from the 4.85 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in May it averaged 6.04 percent.
“Month-to-month sales have recorded increases for the months of March, April and May and this is expected to continue into June,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “The modest recovery in housing prices and sales has been constrained by the job losses in the economy as a whole. A sustained housing recovery is still not within sight and much will depend on the degree to which federal stimulus funds and the resolution of the state’s budget generate a much needed boost to employment.”
Adds Hewings: “Since the beginning of the recession in December 2007, Illinois has posted negative job changes 18 times. Illinois' official unemployment rate in May was 10.1 percent, the highest rate in the last 25 years.”
In the Chicago Primary Metropolitan Statistical Area (PMSA), home sales were up 18.7 percent to 5,634 homes sold in May 2009 compared to 4,747 home sales in April 2009; sales were down 18.7 percent from 6,927 home sales in May 2008.
The median home sale price for the Chicagoland PMSA was $200,000 in May 2009, up 4.2 percent from $192,000 in April 2009; the median price was down 20.3 percent from $251,000 in May 2008. In the city of Chicago, May total home sales (single-family and condominiums) were up 11.5 percent to 1,537 sales compared to April 2009 sales of 1,378; sales were down 27.5 percent from 2,119 homes sold in May 2008.
The city of Chicago median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009; it was down 29.5 percent from $319,000 a year ago in May 2008.
“We’re encouraged to see the bank-owned inventory moving in the marketplace, indicating buyers are finding good bargains, especially in single family homes and flats,” said David Hanna, president of the Chicago Association of REALTORS®. “The city of Chicago condominium sales numbers continue to reflect a critical need for governmental agencies to review the growing disparity in the ability to finance a condominium purchase in the city. This affordable housing will become unaffordable and unattainable to many qualified first-time homebuyers in the city of Chicago unless existing federal guidelines, which do not take into account nuances of the local market, are modified.”
According to the IAR report, median home sale prices comparing May 2009 to the same month in 2008 were up in 37 of 98 Illinois counties reporting including Adams, up 16.2 percent to $99,900; DeWitt, up 12.0 percent to $106,250; Kankakee, up 17.8 percent to $149,000; Knox, up 4.1 percent to $76,000; Macon, up 0.1 percent to $85,050; McDonough, up 19.8 percent to $85,000; Rock Island, up 6.1% to $95,500; Stephenson, up 2.6 percent to $80,000 and Whiteside, up 6.5 percent to $90,450.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
The Illinois Association of REALTORS® is a voluntary trade association whose 53,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
SPRINGFIELD, Ill. — The month of May marked the fourth consecutive month-to-month increase in home sales for the Illinois housing market and the third monthly increase in the statewide median home sale price, according to the Illinois Association of REALTORS® latest report. Total home sales (which include single-family and condominiums) were up 19.3 percent in May 2009 to 8,945 homes compared to 7,501 homes sold in April 2009. Compared to a year ago, home sales were down 21.0 percent from May 2008 sales of 11,326.
The Illinois median price in May 2009 was $158,000, up 4.5 percent from $151,200 in April 2009; it was down 16.0 percent from $188,000 a year ago in May 2008. The median is a typical market price where half the homes sold for more, half sold for less.
“We are seeing more activity in the housing market with increased listings, more activity at showings, a surge in interest from first-time buyers as well as some improvement in time on market,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®. “First-time homebuyers who want to take advantage of the $8,000 tax credit need to be aware that the purchase has to close no later than November 30 given the December 1 cut-off under current guidelines by the federal government. That means being under contract by early fall.”
Adds Callan: “Mortgage interest rates are another factor for moving swiftly in this market. They remain at historic lows but where they will be in coming months is uncertain.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.89 percent in May 2009, up slightly from the 4.85 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in May it averaged 6.04 percent.
“Month-to-month sales have recorded increases for the months of March, April and May and this is expected to continue into June,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “The modest recovery in housing prices and sales has been constrained by the job losses in the economy as a whole. A sustained housing recovery is still not within sight and much will depend on the degree to which federal stimulus funds and the resolution of the state’s budget generate a much needed boost to employment.”
Adds Hewings: “Since the beginning of the recession in December 2007, Illinois has posted negative job changes 18 times. Illinois' official unemployment rate in May was 10.1 percent, the highest rate in the last 25 years.”
In the Chicago Primary Metropolitan Statistical Area (PMSA), home sales were up 18.7 percent to 5,634 homes sold in May 2009 compared to 4,747 home sales in April 2009; sales were down 18.7 percent from 6,927 home sales in May 2008.
The median home sale price for the Chicagoland PMSA was $200,000 in May 2009, up 4.2 percent from $192,000 in April 2009; the median price was down 20.3 percent from $251,000 in May 2008. In the city of Chicago, May total home sales (single-family and condominiums) were up 11.5 percent to 1,537 sales compared to April 2009 sales of 1,378; sales were down 27.5 percent from 2,119 homes sold in May 2008.
The city of Chicago median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009; it was down 29.5 percent from $319,000 a year ago in May 2008.
“We’re encouraged to see the bank-owned inventory moving in the marketplace, indicating buyers are finding good bargains, especially in single family homes and flats,” said David Hanna, president of the Chicago Association of REALTORS®. “The city of Chicago condominium sales numbers continue to reflect a critical need for governmental agencies to review the growing disparity in the ability to finance a condominium purchase in the city. This affordable housing will become unaffordable and unattainable to many qualified first-time homebuyers in the city of Chicago unless existing federal guidelines, which do not take into account nuances of the local market, are modified.”
According to the IAR report, median home sale prices comparing May 2009 to the same month in 2008 were up in 37 of 98 Illinois counties reporting including Adams, up 16.2 percent to $99,900; DeWitt, up 12.0 percent to $106,250; Kankakee, up 17.8 percent to $149,000; Knox, up 4.1 percent to $76,000; Macon, up 0.1 percent to $85,050; McDonough, up 19.8 percent to $85,000; Rock Island, up 6.1% to $95,500; Stephenson, up 2.6 percent to $80,000 and Whiteside, up 6.5 percent to $90,450.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
The Illinois Association of REALTORS® is a voluntary trade association whose 53,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
You go sit in the corner - mommy, mommy I can't...
You have all probably heard those weird and mostly sick jokes. Well here is a real story, weird too.
If you are from around Stickney, you probably already know about the "House with no corners". The Stickney House (AKA Stickney Mansion) was built in 1836 by George and Sylvia Stickney who were followers of a form of Spiritualism which maintained that corners could trap evil spirits and even attract them leading to catastrophic ends. To avoid this, they built a house with no corners. Actually, it proved impossible to build the whole house without corners, but the Stickney's tried to make it a round as possible. Sadly, they found George dead in one of the few corners in the house with a terrified look on his face.
Sunday, July 12, 2009
10 deadly Mistakes Buyers Make When Purchasing A Home
1. Making an offer on a home without being prequalified.
2. Not having a home inspection.
3. Limiting the search to open houses, ads, or the internet.
4. Choosing a real estate agent who is not committed to forming a strong buisness relationship with them.
5. Thinking that there is only one perfect house out there.
6. Not considering long-term needs.
7. Not examining insurance needs
8. Not negotiating a home protection plan.
9. Not knowing total costs involved.
10. Not following through on due diligence.
2. Not having a home inspection.
3. Limiting the search to open houses, ads, or the internet.
4. Choosing a real estate agent who is not committed to forming a strong buisness relationship with them.
5. Thinking that there is only one perfect house out there.
6. Not considering long-term needs.
7. Not examining insurance needs
8. Not negotiating a home protection plan.
9. Not knowing total costs involved.
10. Not following through on due diligence.
If you are a veteran - now is the time to buy
It can hardly get better than today to buy a home for those who qualify to get a VA loan. You can buy with no money down at an interest rate which is below the market rate and you do not have to pay mortgage insurance. This adds up to hundreds and hundreds of dollars of monthly savings compared to everybody else. You can also get up to $8,000 back after you close to do whatever you want: renovate, buy a big screen, get new furniture or just save it for a rainy day. All you have to do is buy a principal residence (make sure you are not planning to sell it for 3 years) and you need to meet all of the qualifications. If you do, you will probably find that this is really a once in a lifetime opportunity.
www.propertysiteonline.com
www.propertysiteonline.com
Getting married and buying a home - Don't make this mistake today
Melody and Michael are getting married in September and they want to buy a home. They figure that they will get married and sell Michael's studio condo and buy a place that will be big enough for both of them. This should be no problem since they both have good jobs and good credit and anyway they are just trading up a little bit to a small starter home that Melody can buy on her own and in fact was planning to buy for herself until they decided to get married. and got busy with the wedding arrangements.
If they wait until after they get married, they will no longer be eligible for the $8,000 tax credit because Michael is not a first time home buyer. If Melody buys before they get married, she will qualify for the first time buyer credit. So if they don't want to miss out on the credit they need to act now.
I know, I know, it's possible that one of them will get the jitters at the alter and they won't get married and then Melody will have a small starter home to herself. It's my scenario so they got married and lived happily ever after. THE END
If they wait until after they get married, they will no longer be eligible for the $8,000 tax credit because Michael is not a first time home buyer. If Melody buys before they get married, she will qualify for the first time buyer credit. So if they don't want to miss out on the credit they need to act now.
I know, I know, it's possible that one of them will get the jitters at the alter and they won't get married and then Melody will have a small starter home to herself. It's my scenario so they got married and lived happily ever after. THE END
$8,000 First Time Buyer Credit - Time Is Running Out
Are you aware that the $8,000 first time buyer credit expires on Dec. 1 NOT Dec. 31 this year?
What is it?
An $8,000 refundable tax credit for first time home buyers provided under the American Recovery and Reinvestment Act of 2009. It is available only to first time home buyers who buy a primary residence between Jan. 1, 2009 and Nov. 30th, 2009.
This is a tax credit and not a tax deduction. It is a true dollar for dollar reduction on taxes owed.
The credit can result in a true tax refund. For example, a qualifying 1st time buyer who would normally get back zero on their 2009 taxes would receive a tax refund. Better yet, if you already filed and paid your 2008 taxes, you can file an amended return and the IRS will send you a check for $8,000 (you can't owe any back taxes, though).
What is it not?
It is not a loan and does not have to be repaid if the property is owned for more than 3 years. However, if the home is sold within 3 years it must be repaid.
Who is eligible?
Anyone who has not owned a principal residence in the past 3 years. Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $8,000. A lesser tax credit is still available for home buyers with income above these amounts, up to $95,000 for individuals and $170,000 for joint AGI.
How do I get it?
Buy a primary residence and close on it before Dec. 1, 2009. There will be a scramble on over the next few months as people hurry to get in on this before it expires so don't wait until the last minute. If you do, you won't have as much selection and maybe less room to negotiate.
The IRS form used to request the tax credit is IRS Form 5405.
I will be giving all kinds of other tips about this and how you can get even more money to buy or reduce your payments. There will be tips and traps especially for people getting married and for veterans and investors and and and...
www.propertysiteonline.com
What is it?
An $8,000 refundable tax credit for first time home buyers provided under the American Recovery and Reinvestment Act of 2009. It is available only to first time home buyers who buy a primary residence between Jan. 1, 2009 and Nov. 30th, 2009.
This is a tax credit and not a tax deduction. It is a true dollar for dollar reduction on taxes owed.
The credit can result in a true tax refund. For example, a qualifying 1st time buyer who would normally get back zero on their 2009 taxes would receive a tax refund. Better yet, if you already filed and paid your 2008 taxes, you can file an amended return and the IRS will send you a check for $8,000 (you can't owe any back taxes, though).
What is it not?
It is not a loan and does not have to be repaid if the property is owned for more than 3 years. However, if the home is sold within 3 years it must be repaid.
Who is eligible?
Anyone who has not owned a principal residence in the past 3 years. Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $8,000. A lesser tax credit is still available for home buyers with income above these amounts, up to $95,000 for individuals and $170,000 for joint AGI.
How do I get it?
Buy a primary residence and close on it before Dec. 1, 2009. There will be a scramble on over the next few months as people hurry to get in on this before it expires so don't wait until the last minute. If you do, you won't have as much selection and maybe less room to negotiate.
The IRS form used to request the tax credit is IRS Form 5405.
I will be giving all kinds of other tips about this and how you can get even more money to buy or reduce your payments. There will be tips and traps especially for people getting married and for veterans and investors and and and...
www.propertysiteonline.com
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