Illinois Association of REALTORS® News Release:
Home prices in Illinois are showing signs of stabilizing with continued positive year-over-year median price growth and 10 straight months of mostly double-digit sales increases; the Chicago region marked a year of positive sales activity in June. According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include single-family and condominiums) in June 2010 were up 18.3 percent, totaling 13,072 homes sold compared to June 2009 sales of 11,048 homes. The median price in June 2010 was $170,000, up 2.5 percent from $165,825 in June 2009. The median is a typical market price where half the homes sold for more, half sold for less.
“The tax credit has proved to be a boost to the Illinois housing market with a tremendous level of buying and selling activity for the last 10 months which, importantly, has helped to stabilize home prices statewide,” said REALTOR® Mike Onorato, GRI, president of the Illinois Association of REALTORS® and broker-owner of Onorato Real Estate in Coal City. “As the stimulus winds down, job growth and improved consumer and business confidence will be required to keep on a path toward recovery. People need stable job prospects to feel secure in their purchasing decisions.”
In the Chicagoland Primary Metropolitan Statistical Area (PMSA), year-over-year home sales were positive for 12 consecutive months, up 27.2 percent to 9,085 homes sold (single-family and condominiums) in June 2010 compared to 7,140 homes sold in June 2009. The median home sale price for the Chicagoland PMSA was $207,500 in June 2010, down 1.2 percent from $210,000 in June 2009.
“Continued strong annual sales growth characterized the months of April, May and June in Illinois in the Chicago region,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Sales are forecast to remain positive in double digits in both markets through September. Once again price changes remain more stubborn with some slight upward movement in Illinois in July and August followed by little or no change in September; in the Chicago region, the changes continue to trend down in the 1 to 5 percent range.”
Adds Hewings: “The economy is certainly not helping the housing market; the loss of over 200,000 temporary census jobs overwhelmed the private sector gains of 83,000. The unemployment rate fell nationally to 9.5 percent (from 9.7 percent in May). Illinois’ seasonally adjusted unemployment rate followed the national decline, dropping -0.4 point to 10.4 percent in June.”
Read the complete news release here: http://www.illinoisrealtor.org/newsreleases/july2010
Final Walk-Through Tips
By · CommentsFrom RealtyTimes.com
By Carla Hill
There will come a time during your home buying process when you’ll need to do a final walk-through of the home before closing.
Around a week before you close, take the time to visit your “new” home again. When you’re there, check to be sure that the terms of your contract have been met, and that the condition of the property has not changed significantly since talks began.
As your reference guide, be sure to bring your purchase contract with you for this walk-through. This will help you look for little details, without having to remember each item.
What are things you should be on the lookout for?
1. Major appliances: Be sure that any items that were to remain in the home are still there, and that they are in good working order.
2. Major systems: Do the air conditioning, heat, and plumbing still function?
3. Walls and floors: Has any damage occurred to the floors or walls during the sellers move? Were rugs, artwork, or carpets covering water damage that was not disclosed?
4. Repairs: As part of your purchase contract, the seller may have been required to make specific repairs. Be sure that these have been completed, or that the seller has a written timeline for when the repairs will be done.
5. Screens and Storm Windows: If it is the season for these items to be in storage, be sure they have been left behind and that they are in good shape.
6. Remotes: Garage doors, alarms, sound systems, and the like all use remotes, some of which can be very expensive. If any of these components were part of your agreement, be sure they have been kept with the house.
7. Cleanliness: The home should have been cleaned and all debris removed. You don’t want to spend the first week living in your new home cleaning up other people’s junk.
8. Landscaping: It may seem ridiculous, but yes, some sellers may try to run off with your shrubs and plants. Refer back to your contract to see what should have stayed. If plants were taken, let your agent handle the situation.
9. Fixtures: Light fixtures, curtains, and other items that were agreed upon should still be in the home. If they are not, let your agent address the conflict.
10. Exterior: Has there been any damage to the home since your inspection or first visit? If there have been storm with high winds or hail, be sure to visually inspect the exterior of the house for damage. Once you have signed on that dotted line, the house is yours. Hail damage and all
Read the complete article here: http://realtytimes.com/rtpages/20100727_walkthrough.htm
Real Estate Outlook: Federal Reserve Weighs In
By · CommentsFrom RealtyTimes.com
By: Kenneth R. Harney
The U.S. Congress asked Federal Reserve Board chairman Ben Bernanke a key question last week: Where do you and your colleagues believe we’re headed in terms of the national economy?
Bernanke’s reply: There are bumps and potholes on the road to recovery, but the Fed “expects continued moderate (economic) growth, a gradual decline in the unemployment rate (to about 7 percent) and subdued inflation” over the next couple of years.
No sooner had Bernanke delivered his testimony than some of those “bumps” in the road popped up: The Commerce Department reported new housing starts dropped by 5 percent in the latest month, and the National Association of Realtors reported existing home sales down by a similar percentage.
But keep in mind the central point Bernanke was making in his forecast: Troubled though it may look with any single statistical report, the fact is the national economy continues to grow – by about two and a half percent on an annual basis – and many elements of the economy are better off this year than the were the year before.
Take the Commerce Department’s housing starts number: That five percent decline was mainly the result of a big drop in starts of new rental apartment units – not a drop in starts of new single family houses, which were stable.
In fact, the Commerce Department survey found that permits pulled by builders for future construction on single family homes were actually up in three out four of the major regions of the country.
Analyzing the government’s data, Bernard Markstein, senior economist for the National Association of Home Builders, was encouraged – and predicted increases in both starts and sales over the coming several months.
The latest sales report for existing homes from the National Association of Realtors also had some bright spots: Sales in June were 10 percent higher than they were in the same month the year before.
Even median prices of all homes sold were up slightly, and that’s despite the fact that one third of sales were “distressed” in some way – REOs, foreclosures or short sales.
And remember: virtually all economists – including those at the Fed – had forecast lower home sales for the months immediately following the expiration of the tax credit programs.
Read complete article here: http://realtytimes.com/rtpages/20100726_realestateoutlook.htm
From RealtyTimes.com
by Phoebe Chongchua
It’s not a lot of time, but a three-month homebuyer limited tax-credit extension will help some. “I think it was one of relief by lots of homebuyers who had loans and real estate transactions in the pipeline and couldn’t close by the June 30th deadline. The extension gives them the opportunity to finish up their deals and close by September 30th,” says Lucien Salvant, National Association of Realtors spokesperson.
“We estimate up to 180,000″ will benefit from the extension. However, if you don’t currently have a loan application in, it’s too late to take advantage of this federal housing tax credit. “You had to have a valid contract by April 30th,” says Salvant.
But Salvant says that shouldn’t discourage interested buyers because the market is ripe with other opportunity. “The good news for people who didn’t take advantage of the tax credit is that the inventory is still plentiful, although it’s reduced significantly from what it was a year ago, prices are affordable, and the interest rates are the lowest they’ve been since the 1950s.” The low interest rates are, of course, a magnet for attracting buyers. However, Salvant says that while this is a good time to buy, he notes that the lending market isn’t operating the way it did before the housing crisis. This, he says, should make people understand that buying a house is a good option if you plan to stay in it a while—not play the flipping gamble, hoping for a quick profit.
“The average is about seven years. Homeownership is an investment in the future, not for a quick turnaround, which a lot of people abused in the earlier part of this decade,” says Salvant.
Salvant notes that the housing market’s recovery is being hampered by uncertain unemployment conditions which are causing some potential buyers to wait, possibly for more breaks.
But Salvant says don’t count on more tax incentives. “We have asked Congress now for three different tax credits and we’ve gotten them. The purpose of the tax credit was to give a quick start to the housing economy which was coming apart and sinking fast. We think it really helped. Now, it’s time for the housing market to stand on its own two feet,” says Salvant.
Read complete article here: http://realtytimes.com/rtpages/20100716_taxcredit.htm
Local home sales up for 12 straight months
By · CommentsFrom Crain’s Chicago Business
(Crain’s) — Chicago-area home sales have now increased every month for a full year, rising again in June compared with the same month in 2009.
In the nine-county Chicago region, sales of single-family homes and condominiums rose more than 27% to 9,085, compared to 7,140 homes sold in June 2009, according to a news release Thursday from the Illinois Assn. of Realtors.
In the city of Chicago, sales similarly jumped 27.5% to 2,526, compared to 1,981 homes sold in June 2009, the 10th consecutive month of higher year-over-year sales for the city.
A federal tax credit of up to $8,000 for first-time homebuyers and $6,500 for other buyers who signed contracts by April 30 helped the market, according to association President Mike Onorato. The deadline to close to get the credit recently was extended to Sept. 30.
“As the stimulus winds down, job growth and improved consumer and business confidence will be required to keep on a path toward recovery,” Mr. Onorato, broker-owner of Onorato Real Estate in Coal City, said in the release.
The median price in the Chicago area — at which half the homes sell for more and half for less — dipped 1.2% in June to $207,500, compared to $210,000 in June 2009.
In Chicago, the median price dropped 3.2% to $234,250, compared to $242,050 in June 2009, according to the Realtors.
Statewide home sales increased for the 10th consecutive month, rising 18.3% to 13,072, compared to 11,048 in June 2009. The state’s median price rose 2.5% to $170,000, compared to $165,825 in June 2009.
The association’s 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.
Original article here: http://www.chicagobusiness.com/cgi-bin/news.pl?id=38960
Small Room Decorating Tips
By · CommentsFrom RealtyTimes.com
by Carla Hill
A small space doesn’t have to lack style. In fact, with the right pieces of furniture, accessories, and splashes of color, your small space can make a big impression.
The first order of business is to embrace the light. No, we’re not talking about going “new age spiritual.” By that we mean playing up any windows. This allows the grand scope of the outside to come into your space. And that’s a big, big world out there! Natural light also has a way of opening up spaces. To frame the light, consider using complimentary curtains. Blinds can be too heavy, but curtains add a frame to your natural picture.
And unless you live in northern Alaska during the equinox, you are going to need some alternate lighting. Use this opportunity to really play up your design. Lamps don’t need to be boring. Consider modern chandelier fixtures, retro shades and lamps, and sleek and modern recessed lighting.
Next, keep the colors bright. Heavy, dark colors absorb light and can make a small space seem even smaller. If you are drawn to a passion red or a deep ocean blue, then use these fabulous colors as accents in artwork and accessories, such as throw pillows. Another color tip? Consider keeping it all in the same hue. This works particularly well if you are a fan of patterns. A highly contrasting pattern can jar the eye. As an alternative, use similar hues to work in cohesion.
Storage is also key in a small space, especially when it comes to functionality. If you have a large collection of books or movies, then a sleek media cabinet or shelving unit can keep clutter managed. Ottomans that double as storage are a great place to store toys! Keeping clutter to a minimum is a great way to make a small space appear bigger.
Lucite, glass, and mirrors. Oh my! Our eyes fall softer on, and sometimes passes right through, these items. Transparent and reflective surfaces can give the appearance that the room is less full. As in the world of graphic design, negative space (where no design elements are found) can be a powerful way to play up your other design features. Many furniture stores offer great options in tables, dresser, and even chairs! A mirror is not just for the wall anymore. Play up the idea of expansion by using mirrored objects all around your room!
Read the complete article here: http://realtytimes.com/rtpages/20100722_smallroom.htm
Home Warranty FAQ
By · CommentsBy Carla Hill, www.RealtyTimes.com
Home warranties are on the rise. Realty Times takes a moment to look at some of the most common questions regarding these products.
What is a home warranty?
A home warranty is a residential service contract giving the homeowner repair and replacement coverage for major operating systems and appliances in a home. These repairs must be due to wear and tear, and not negligence or damage.
How can you benefit from a home warranty?
Repairs to homes are inevitable. And while homeowners cross their fingers in hopes that these repairs are relatively inexpensive, what if an entire system needs replaced, and you are left staring at a bill with a few too many zeros? A home warranty can offer you some level of protection.
Your home warranty plan also provides you with a selected network of professionals from which to choose. Many homeowners prefer having a list to choose from instead of taking a guess at which repair company will be reliable.
According to the Service Contract Industry Council (SCIC), a home warranty, also called a home service contract, offers many benefits to buyers and sellers, including:
- Repair or replacement coverage of most major appliances and home systems including heating, plumbing, and electrical;
- Toll-free access to technical support and prequalified repair professionals;
- Comfort for new owners and protection for sellers while their property is on the market;
- Optional coverage for structural components such as roofs; recreational equipment such as swimming pools; etc.
- Ability to transfer the contract from homeowner to buyer.
What are the average costs of a home warranty? MSN Money says you will be looking to spend somewhere from $250 to $600. And then expect to spend from $25 to $75 for each service visit.
What isn’t covered?
According to The Home Warranty Review, you should make sure you get any repairs approved by your warranty company prior to calling a repair company. This will help to ensure you are reimbursed. Keep in mind that pre-existing conditions, improperly installed or mismatched equipment, and poorly maintained systems are not usually covered.
Warranties also do not cover “acts of God.” This means the pet damage, the graffiti, and the lightning strike are your own responsibility.
Keep in mind, as well, that items “outside the perimeter” of your home may also be off limits. The Review writes, “Some people are surprised to learn that the plumbing leak in the yard is not covered.”
How have home warranty changed in our current economy?
According to the SCIC director, Timonty Meenan, there was a “significant increase in home warranty contract renewals in 2009. Existing homeowners fueled the increase over the previous year, while sales by real estate professionals to home sellers and buyers held nearly steady.”
Florida broker/owner Ed Smith of RE/MAX Coastal Properties has seen a jump in home warranties sales over the past five years, noting, “buyers and sellers have come to understand the benefits of home warranties and there are plenty of customer testimonials demonstrating their value. It’s both a good marketing tool for selling and good protection policy for buyers and sellers.”
How do I choose a company?
MSN Money reporter, Liz Pulliam Westom, gives you three helpful tips.
- Find out which government agency, if any, regulates home warranty companies in your state and check its complaint records.
- If regulation is loose or nonexistent, pick a company that has a long track history in your state and solid financials. (If the company is public, you can ask for an annual report to see if its home warranty operations are making a profit.)
- If someone else — the home seller or a real estate agent — is paying for the policy, insist that the warranty premium be paid in full for the term of the agreement before the sale closes. Check to be sure the amount is listed on the final escrow statement.
A final tip for anyone considering a home warranty, is to read carefully. A warranty is a contractual agreement, and like all contracts, you should know what you are signing. Warranties can vary in price and coverage depending on the company you choose, so be sure to shop around before signing on the dotted line.
Read original article here: http://realtytimes.com/newsfiles/realtimes2.nsf/rtpages5.1/20100617_homewarranty.htm
Banks: We’re hiring so we can make more home loans
By · CommentsCNNMoney.com — Several banks are gearing up to do a whole lot more mortgage lending in the future.
Even though new homes sales were at a historical low in May and the housing market in general is in the doldrums, these banks are hiring hundreds of loan originators, getting ready for what they believe will be a significant pick-up in lending.
JPMorgan Chase (JPM, Fortune 500), one of the nation’s largest lenders, is in the midst of hiring 1,200 mortgage officers. “We may not be inundated with applications tomorrow, but we are confident the the need will be there,” said Christine Holevas, a spokeswoman for JPMorgan Chase.
Housing experts, however, warn that overall mortgage lending is expected to remain flat, largely due to a decline in refinancing.
Loans for home purchases should steadily increase over the next two years to $916 billion, up from an expected $725 billion this year, according to forecasts by the Mortgage Bankers Association. But refinancings should plummet to $474 billion in 2012, down from $717 billion this year.
“It’s pretty premature,” said Mark Dotzour, chief economist at Texas A&M’s Real Estate Center. “They are doing some long-range planning, with the emphasis on ‘long’.”
Chase expects to put its new mortgage lending army in the branches of the former Washington Mutual, which Chase acquired in 2008. It also plans to expand its mortgage lending operations to cities outside its footprint, including Boston, St. Louis and Washington, D.C.
The bank is also shifting to a branch-based lending strategy because it found that these mortgages are much less likely to default. And the bank sees a need in these markets.
“We wouldn’t be out there hiring if we thought these people would be sitting around,” said Holevas. “We don’t think they’ll be idle.”
Citizens Bank, meanwhile, is also growing its mortgage operations. The Providence, R.I.-based bank, which operates in a dozen states, increased its lending by 167% in 2009, compared to the year before.
Owned by the Royal Bank of Scotland, Citizens ranked as the 24th largest lender in the first quarter of this year, according to Inside Mortgage Finance, a trade publication.
Full article by Tami Luhby here: http://money.cnn.com/2010/06/24/news/economy/mortgage_lending/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29
Chicago home sales jump 32% in May
By · Comments(Crain’s) — More homes were sold in Chicago in May than a year earlier, marking the ninth month in a row of year-over-year gains.
The Illinois Assn. of Realtors reported Tuesday that last month’s sales of 2,057 single-family houses and condominiums represented a 32.1% increase from May 2009 sales. The median price also rose, up 2.2% to $230,000, from the same month last year.
The city’s May sales uptick was also seen in the greater Chicago area, where 33.6% more homes were sold. The median price for those homes, however, fell, down 4.8% to $190,500.
Illinois home sales were up 27.1%. The median price of the 11,638 homes sold statewide last month was $157,00, a slight increase from the $156,000 median of May 2009.
The National Assn. of Realtors said Midwest home sales remained strong in May as the homebuyers tax credit drove sales nearly 22% higher than in May 2009. The credit called for offers to be made by April 30.
The data released Tuesday show 130,000 sales in the 11-state Midwest region in May. The median home price increased more than 2%, to $150,700.
Midwest sales again rose more than national ones. Nonseasonally adjusted figures show May home sales nationwide increased about 18% over last year.
The Associated Press-Re/Max Monthly Housing Report, which also was released Tuesday, showed home sales increasing in all but one of 12 major Midwestern cities tracked. Fargo, N.D., led the region with a 66% sales jump. Detroit reported the only sales decrease, a 15% drop.
View original article here, from Crain’s Chicago Business: http://www.chicagobusiness.com/cgi-bin/news.pl?id=38644
How To Make Buyers Want Your Home
By · CommentsBy Phoebe Chongchua, www.RealtyTimes.com
You love your home but when it comes time to sell, you have to share the love. In the other words, you have to make your home be seen in the eyes of potential buyers as their home. That can be tricky.
But if you do some of the basic things such as clearing clutter, creating light, bright, and open space, adding curb appeal, removing personal items (family photos, trinkets), fresh paint, and clean or new carpet — you’ll be on your way to attracting serious buyers. I’ve written a lot about staging and creating curb appeal so check out my other columns for more on those topics.
In this column, however, we’re looking at specific areas that create widespread appeal inside the home. Here are some of the top areas to improve: countertops, flooring, built-in furniture, and old-style attached fixtures such as those big sheet mirrors in the bathroom. However, when making these improvements, there’s one important consideration.
Functionality is the greatest concern cited by homeowners, according to the latest poll conducted by the National Association of the Remodeling Industry (NARI).
“The functionality of a home is very important, especially over the long term, as many homeowners in this economy have opted for remodeling over moving to new homes,” says NARI National President Paul Zuch, CR, president of Capital Improvements.
So let’s explore the areas I mentioned earlier and see how improving these items can lead to greater interest in your home. Countertops are fixtures in homes. So making sure that you select the best material to endure the daily wear and tear is important. If we’re talking about the kitchen, for instance, there are many options: granite, tile, recycled glass (for a green option), solid steel, composite stone, butcher block, laminate, and even concrete. Yes, that last one sounds surprising but concrete is being used for countertops and laminate isn’t necessarily trying to mimic other materials anymore. Instead, homeowners are embracing laminate’s own unique high-tech look. The popular trend is a mixing of several styles creating a blended custom look for the kitchen. But in the end, functionality will rate highest for potential buyers. All of the countertop materials mentioned above have advantages and disadvantages when it comes to maintenance and usage; make sure you completely research the material before selecting it for your home.
Fixtures are an important area to improve. “People know a lot more about design,” Laura Kirar from Larua Kirar-TRU Design told the Alexandria Times. These days, quirky, eclectic styles from international trends are becoming more prevalent in the United States. However, push the envelope too far with quirkiness and you just might lose a potential buyer. What’s important to know is that buyers are paying attention to fixtures. If you have damaged or worn out faucets or lighting, it’s best to replace them before showing your home. Also, replacing those big, nothing-special sheet mirrors with some framed mirrors can add a unique look without costing very much. While you don’t want to have to spend a lot just before you sell your home, remember that these seemingly small items can have a great impact on improving buyers’ interest in your home.
Read the complete article here: http://realtytimes.com/rtpages/20100618_buyers.htm