2009 January « Jen Conte’s Weblog

Affordable Housing – Horray!

January 27, 2009 — jenconte

From Crain’s Chicago Business

Chicago home prices down less than U.S. in Nov.

(AP) — Chicago home prices fell in November but not as much as prices nationwide, which a widely watched index shows dropped by the sharpest annual rate on record.

But the silver lining might be that more families can finally buy a home for the first time in years. Falling home prices coupled with lower interest rates have shaved hundreds of dollars off monthly mortgage payments, and that is luring buyers back into the market, new data this week showed.

The Standard & Poor’s/Case-Shiller 20-city housing index released Tuesday tumbled by a record 18.2 percent from November 2007, the largest decline since its inception in 2000.

Chicago prices fell 12.5 percent compared with November 2007 and 2.8 percent compared with October 2008, the S&P/Case-Shiller data show.

Both the 20- and 10-city indices have recorded year-over-year declines for 23 straight months. Prices are at levels not seen since February 2004.

But the numbers may not be as ugly at second glance, according to Patrick Newport, an economist with IHS Global Insight.

“If you adjust for inflation, they’re not record declines,” Newport said. “Home prices are still dropping at about a 20-percent clip, but it’s not as bad as it’s been in last six months.”

But the recession and sweeping job losses don’t bode well for a near-term turnaround in housing prices. Newport estimates prices will drop another 10 percent to 15 percent this year.

In fact, Americans’ mood about the economy darkened further in January, sending a widely watched barometer of consumer sentiment to a new low, the Conference Board said Tuesday.

The National Association of Realtors said Monday that the median home price fell a record 15 percent last month to $175,400, down from $207,000 a year ago. That led to a surprising jump in sales from November’s level.

With current interest rates and a 10 percent down payment, anyone who buys a median-priced home now would save $254 a month compared with the median price and interest rate of a year ago.

The Realtors’ home affordability index in November showed its best reading since 1993.

“I bet when they incorporate December’s numbers,” Newport said, “it will show housing is as affordable as it was in 1973.”

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MSNBC’s 10 Real Estate Myths for Buyers and Sellers

January 26, 2009 — jenconte

MSNBC.com

10 real estate myths for buyers and sellers

The truth about the housing market
In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.

Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Buyer myth No. 2: The sellers today are desperate.
Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.

Buyer myth No. 3: You can’t buy a home today with less than 20 percent down.
FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.

Buyer myth No. 4: You need good credit to get a good loan.
Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit.

Buyer myth No. 5: You shouldn’t buy before prices have bottomed.
You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.

Seller myth No. 1: Now’s the absolute worst time to sell.
Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.

Seller myth No. 2: Never respond to a low-ball bid.
All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.

Seller myth No. 3: The first offer is never the best offer.
Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.

Seller myth No. 4: ‘I can always reduce my price later.’
Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.

Seller myth No. 5: Before you refinance, shop around.
You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs.

Source: Barbara Corcoran

Updated: 10:34 a.m. ET Jan. 26, 2009

URL: http://www.msnbc.msn.com/id/28818023/?pg=8#TDY_RealEstateMyths

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New Year – Fine in ‘09

January 23, 2009 — jenconte

January, 2009

Dear Friends,

HAPPY NEW YEAR!

As you have no doubt noticed, nearly everyone has an opinion about the state of the real estate market. The most vocal opinions are being expressed on television, on the Internet, in print media and on the radio. The problem is that many of these opinions tell only one side of the story.

Two articles were published in the Daily Herald newspaper on Sunday, January 4^th which talked about how THIS is the best real estate market for buyers since the 1970s because of the extremely low interest rates and the reduced prices on homes for sale. A few years back, I can remember showing houses to clients who only had 5 or 6 properties to choose from in their price range because there was so little inventory. That is certainly not the case today! These lower home prices and large inventories make this an ideal market for first-time homebuyers, people looking to move up to a larger home, and real estate investors. I am very optimistic about the opportunities that this market presents to us all.

I know many of you enjoy the facts, figures and statistics of the market, and if you would like specific data about your own property, please feel free to call me anytime as I would be happy to give you an updated market analysis.

The first Item of Value of the New Year reviews the state of the real estate market. On the reverse side are tips on selling your home faster, the best ways to invest in your home, and a look at historic home values to prove that your home is the best long-term investment. Additionally, I have enclosed a list I came across recently from Crain’s Chicago Business that details the 25 largest employers in the six-county Chicagoland area. I found this very interesting, and I thought it might be useful for anyone looking for new job opportunities.

I hope you had a great 2008, and I look forward to serving you in 2009! Don’t forget to call me for all of your real estate needs. I also have contacts in the commercial real estate industry and access to a network of Realtors around the United States. Take care and I will be in touch.

Sincerely,

Jen Conte

Attachments:

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