This Month in Review August 2009

This Month in Review has Ron and invited guest Justin, talking to us about August statistics.

1. August numbers up  homes sold 29 % from this time last year
2. 14% homes under contract  goes to  Montgomery.  2nd goes to Plainfield
3. 10.1% under contract for all of Fox Valley is much better than this time last year at 6.3%
4. Montgomery leads the inventory levels at 8.3 months of housing inventory, which is well below the average of 12.9 months
5. Aurora led the sales of pre-foreclosed and foreclosed homes at 47%.

Even though it may be distressing to see so many homes being taken back by the banks, there is good to come of it.

1. many of these homes are being bought up and will hopefully speed up the recovery of the housing market
2. this does produce an opportunity for buyers.   great prices and low interest rates hopefully equals the buying opportunity of a lifetime

Real estate is local!

Please continue to come back  here for further updates of the Fox Valley Real estate news!

July’s Monthly Statistics

Ron Donavon does a great job talking about the summer Home Sale statistics.   In brief he tells in the Fox Valley Area;

• home for  sales are 16.3% down for this time last year
• we had a few towns like North Aurora, Plainfield,Montgomery, etc.  will an of absorbtion rate of less than 10 months, while we still had the route 47 corridor is still way over 10 months(over 10 months of inventory means still in buyer’s market
• an alert to remember that summer is some of hottest selling months and we will have to wait and see what are winter months bring us before we can confidently say we are rebounding.

now there is much more stats and commentary from Ron Donavon but you will have to watch the video and get it straight from his mouth.

Keller Williams Red Day May 14th

Keller Williams Fox Valley Realty, in conjuction with all of Keller Williams Franchises are giving back on May 14th to their local communities. Locally we(partnering with the Salvation Army) will be doing 20 projects at local homes in the Fox Valley Area.  These projects will consist of Raking leaves, cleaning gutters, painting rooms, washing windows, cleaning yards, etc…

More information about this event in general can be found at the Keller Williams Blog here!

This is an exciting day,  and should be lots of fun.  Just look for the Keller Williams Agents around town, you cant miss us we will be dressed in RED!

If you have any questions about the Day please call our office at 630-377-6200.

Home owner fair

Wow, Options, options, options!   In these trying times where all we hear is doom and gloom,  it is nice to choices out there for folks that may be struggling.

This April 19th from 1-4pm  come to Keller Williams Fox Valley Realty. where are having a Home Owner fair where you can visit may information booths, that will hopefully help you make you next big decision.  some of the booths that you can visit are, Short Sale/foreclosure, Rental, Commercial, Loan Modification, Home Price Protection, First time Home buyers, Financial, contract for Deed, Moving assistance and checking your home value!

this Home Owner Fair is designed to be there to answer your questions and or concerns.

we look forward to seeing you at the Home owner Fair

Home Price Protection

Home prices, historically, have averaged  1-2 percent increase from year to year (since 1950). But since 2000, we have averaged nearly 9% increase in home prices year to year*.  That extremely large increase coupled with the fact that average home sales prices outgrew average household income in 2003 meant only one thing, the housing bubble had to burst! Now this post is not meant to scare you or even make you think you can never sell your home. It is simply designed to educate you on why we are where we are and explain why I am excited about what my office can offer you and your family and friends!

Now lets discuss the hope that exists out there!

Experts say that we still need to drop 24% in home prices to reach traditional levels. Whether or not this is true or even accurate is not the point, this is the perception, and we must deal with this now! This perception is part of the reason why the market is declining the way it is. With home prices still declining why would a buyer want to buy a home  when the home will be worth less as soon as they close on it. So about the only solution us buyers have, is to make extremely low offers, which as we all know frustrates sellers. That is until today!

Today there is now another solution, A Home Price Protection by Equity Lock. This provides Homeowners a way of protecting themselves against market declines (such as we have today.) It works this way, if you purchase a home for $200,000 and the market declines 5% when you sell your home, Equity lock will pay you $10,000 at closing**. This can be offered to almost all markets in the area.

Bottom line, this is an amazing solution for both buyers and sellers. Buyers do not have to predict the exact bottom of the housing market(which is impossible) and sellers don’t have worry about receiving nothing but low ball offers(hopefully).  In this market everyone should feel like they are getting the best deal available to them and I think this is definitely a step towards accomplishing that exact thing. If you would like more information on this, please  go to the website of Equity Lock or contact your trusted Keller Williams Consultant!

* information paraphrased from a usatoday article “why home values may take decades to recover

** numbers are for demonstration purposes only, please go to equity lock for a deeper explanation

Now is the time

Wow!  Interest rates at their lowest since January of this year, Federal tax credits of up to $7500, and a quick glance at the internet turning up dozens of amazing deals, can there be any question that now is the time to buy? 

Whoa, you say!  Don’t you listen to the news?  You can’t even get a loan to buy a home!  Homes are not selling! 

Hang on I say, over 300 homes sold in Kane and Kendall county in the last 30 days!  Homes are selling!  And yes, I do listen to the news, but carefully, and not all sources!  You’ve got to plow through the hype, and suss out the facts!

• Lowest interest rates since the beginning of the year.
• FHA programs still allowing only 3% down payment (will go up next year).
• Federal government offering up to $7500 tax credit for 1st time purchasers. (Scheduled only until June ‘09).
• Hardest hit markets on the coasts of  the U.S. starting to recover.  Usually the rest of the country follows in suit.
• Still too many months of inventory, prices remain low.

Even if you are not a first time buyer, now may be a great opportunity for you!  If you are thinking of moving up to a more expensive property, you can actually come out ahead in a down market.  Although you are “losing” money on the sale of your current home, you will be “gaining” money on your purchase up!  If you were to sell in an up market, sure you would be getting more money for your current home.  But so would the seller you would be buying from! 

Take a look at some of the incredible bargains in your neighborhood alone.  Then multiply it out over all of the neighborhoods across the state!  We may not see another market opportunity like this for years. 

And, if you need one more incentive, here it is.  For the current market to turn around, the number of homes for sale must decrease.  They must be sold!  What better way to support our nation’s economy than to help turn it around by taking a home off of the market?  Uncle Sam wants you!

Thinking Green about Water

As we move closer and closer to the season of the white fluffy stuff, thinking about water usage is probably not on your mind.  But, that white fluffy stuff melts and turns to water, something that is becoming more and more scarce  on our planet.  Households make up  10% of the fresh water used in this country.  That may not sound like a lot, but that adds up to over 43 billion gallons of water per day for use in households (drinking,  bathing, laundry, cooking, and outdoor use).  43 billion a day!

While many newer homes are coming equipped with water saving appliances, plumbing, and features, your older home can be made to be more water conserving very easily.  The toilet accounts for 28% percent of water usage in the average U.S. home.  The city of New York realized how big an impact could be made just by encouraging its residents to replace older, water inefficient toilets, with newer efficient ones.  The rebate program cost the city about $393 million in money back to home and building owners when they made the switch.  But the 7% savings in water usage saved the tax payers $605 million by deferring expansion of the cities water infrastructure.  That’s a win-win!

How can you get in on the savings, even without a government rebate?  First and least expensive is to install low flow aerators on faucets.  This is the single best home water conservation method.   Inexpensive, water saving shower heads are another great way to decrease water waste.  If you have an older toilet, but are unwilling, or unable to replace it, fill the bottom of 2 plastic bottles with about 1-2 inches of sand, then the rest of the way with water.  Place them in the toilet tank, away from the mechanical parts.  You will be saving water with every flush!

A few free options for conservation are to turn the water off while brushing your teeth, except to rinse.  The same for shaving.  Rather than rinse the razor in running water, put an inch or so of water in a stoppered sink.  This will rinse the razor just as well.  Take shorter showers, and turn off the water when lathering.  Only run the clothes and dish washers with full loads.  Stop using your garbage disposal, and start a compost pile.

If you are inclined to invest the greenback to go green, do a bit of research.  Be sure to compare the purchase cost, the operational cost, and the upkeep or maintenance cost when deciding which unit to purchase.  According to the U.S. Dept. of Energy: “Based on our estimates, a typical family with a home more than a decade old could save $200 per year in electricity and water bills, and 18,600 gallons of water, by switching to highly energy and water efficient appliances. A family in a newer home would save slightly less, due to the more efficient equipment already installed in their home. If every American household installed these products, the annual water savings would equal the average flow of the Mississippi River into the Gulf of Mexico for five entire days.”  (Source: National Geographic Green Guide).  That’s a lot of white, fluffy stuff!

National Affordability is on the RISE!

Keep your head up!

To listen to the news, one would think that the end is near.  Indeed, one newspaper recently featured a cartoon with a downtrodden soul carrying such a banner. “The End Is Near” it read.  Next to him in the cartoon, a trader from Wall Street, is labeling the doom and gloomer an “Optimist”!

One motif that our current economic situation is given is “as bad as the Great Depression”.  Lets look at a few facts about our current situation and the Great Depression.

The unemployment rate in the US during the Depression reached 25%.  Even at the end of the 1930’s, unemployment was close to 15%.  As October 24th, our current unemployment rate measured 6.1% (source: Dept of Labor).  As of January, 1934, 43.8% of all owner occupied homes in the US that had a first mortgage were in default on that loan.  As of the end of June, 2008, 2.75% of loans were in the foreclosure process (notice of default, auction sale notice,or bank repo).  An additional 6.41% were at least 1 month delinquent (source: Mortgage Bankers Association).  Fully 40% of US banks failed during the 5 years from 1929 to 1933.  Today, only 15 of the 8,451 banks backed by the FDIC have been taken over by the FDIC, or less than 0.2% (source: FDIC).

You may have heard that the credit markets are “frozen”.  But when it comes to housing, FHA, Fannie Mae and Freddie Mac are open for business.  These 3 entities are accounting for over 90% of the loans in the US mortgage market.  FHA alone is insuring over 100,000 new loans a month.  HUD Secretary Steve Preston says that these 3 have “kept liquidity alive” for home buyers.  “There is no credit crisis” for individual home buyers who have at least 3% to put down, documentable employment, and at least a moderately good credit record, said Preston.  Preston and HUD are playing key roles in the widely publicized $700 billion financial system bailout.

Also in the works on Capital Hill: A new economic stimulus package aimed at increasing employment and adding billions of dollars into key segments of the economy.  One version of the proposal includes a large federal tax credit for all purchasers of homes.  Currently, the federal goverment has a $7500 tax credit available to first time buyers, which has to be paid back over time.  The new credit amounts being pushed by housing industry lobbyists are up to $12,000, available to all home purchasers, and would not have to be repaid.

So, keep your head up!  Times are tough, but have been tougher.  Interest rates are still good, gas and heating oil prices are down.  We get what we focus on. Don’t let the mainstream media determine YOUR focus!

Greens the theme!

With elections on our minds, and all over the press, green is a word that floats easily off the tongue of our want to be leaders.  Green has advanced from being the name of a political party, to a major plank in the platforms of all the political parties.  It has also become an important part of the home buyers decision making process.  Concerns and wants run the gamut from the obvious, (like Energy Star rated appliances), to the nearly invisible (low V.O.C paints).  Even our “already elected” officials see the political usefulness, and hopefully the actual value of going green.  This is evidenced in the creation and extension of many tax credits that are a part of the so called bailout plan.

Indeed, the government has extended the credits for solar and alternative energy features in commercial and multifamily applications.  It also removed a $2000 cap for the credit in residential solar applications.  Other alternative energy sources given new, or having their credits extended include geothermal heat pumps, fuel cells, and wind energy.  Add to that even more credits for “building green” and meeting certain energy efficient ratings.  These cover green building materials, lighting, air conditioning and appliances.

So what are the current top trends and technologies for energy efficiency in new homes,and in your remodel of an existing home?  According to PATH (Partnership for Advancing Technology in Housing), top techniques include:

Air sealing using sprayed foam and fiber insulations.

HVAC sizing, estimating heating and cooling loads more accurately and then properly equipping homes for more efficient energy use.

High efficiency toilets, saving 20% more water than a standard 1.6 gallon per flush toilet.  This equates to over 8700 gallons per year savings for a family of four.

Compact Flourescent lighting, which are up to 4 times more efficient than incandescent bulbs, and can last up to 10 times longer.

Tubular skylights, using the sun to light interiors, but without many of the drawbacks of conventional sky lights.

The list is endless, and the savings great.  Many of the mentioned technologies can be used in new construction, or added to your existing home to start enjoying the benefits now.  And, adding to your homes value later…