Schaumburg Illinois and Suburbs Real Estate Blog
Survey finds 2009 “Year of the First-Time Buyer”
by Mary Schaefer on January 29, 2010
Last year will be remembered as one of the strongest buyer’s markets of all time and in particular it was a good year for the first-time buyer who was able to take advantage of the low interest rates, more affordable home prices a large supply of homes on the market and the first-time homebuyer tax credit.
More than half of homebuyers surveyed in the 2009 Profile of Illinois Home Buyers and Sellers were first-time buyers, due in large part to the first-time homebuyer tax credit stimulus and increased affordability in home prices in the last year. The survey results released by the Illinois Association of REALTORS® (IAR) found 51% of buyers were first-time buyers, compared to 47% nationwide (a figure which has averaged closer to 40% nationwide since 2001). When asked about the primary reason for timing of the home purchase, 46% of first-time buyers said it was just the right time.
The first-time buyer trend should continue early in 2010 as the $8,000 first-time buyer tax credit has been extended through April 30 and expanded to include a tax credit for long-time homeowners of up to $6,500.
The median age of first-time home buyers in Illinois was 29 years old, while the typical repeat buyer was 45 years old. The median income was $64,400 among first-time buyers and $92,800 among repeat buyers.
Forty-seven percent (47%) of first-time buyers used Federal Housing Administration (FHA) financing compared to 33% who used a conventional loan to finance their home purchase. Out of all buyers, 33% used FHA and 55% obtained a conventional loan.
(Article taken from www.IllinoisREALTOR.org, the website of the Illinois Association of REALTORS(r).)
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Last year will be remembered as one of the strongest buyer’s markets of all time and in particular it was a good year for the first-time buyer who was able to take advantage of the low interest rates, more affordable home prices a large supply of homes on the market and the first-time homebuyer tax credit.
More than half of homebuyers surveyed in the 2009 Profile of Illinois Home Buyers and Sellers were first-time buyers, due in large part to the first-time homebuyer tax credit stimulus and increased affordability in home prices in the last year. The survey results released by the Illinois Association of REALTORS® (IAR) found 51% of buyers were first-time buyers, compared to 47% nationwide (a figure which has averaged closer to 40% nationwide since 2001). When asked about the primary reason for timing of the home purchase, 46% of first-time buyers said it was just the right time.
The first-time buyer trend should continue early in 2010 as the $8,000 first-time buyer tax credit has been extended through April 30 and expanded to include a tax credit for long-time homeowners of up to $6,500.
The median age of first-time home buyers in Illinois was 29 years old, while the typical repeat buyer was 45 years old. The median income was $64,400 among first-time buyers and $92,800 among repeat buyers.
Forty-seven percent (47%) of first-time buyers used Federal Housing Administration (FHA) financing compared to 33% who used a conventional loan to finance their home purchase. Out of all buyers, 33% used FHA and 55% obtained a conventional loan.
(Article taken from www.IllinoisREALTOR.org, the website of the Illinois Association of REALTORS(r).)
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
This is not your father’s real estate market!
The new year has brought another round of new laws, rules, regulations, procedural changes, etc. Cumulatively in the last twelve months or so the volume of these changes has been monumental. What with new mortgage loan underwriting requirements, appraisal rules, truth-in-lending regulations, agency laws, closing procedures, fair housing laws, tax code changes and so much more, it’s enough to blow your mind! Add to that the expanding role of short sales and bank-owned properties in the market, with the varied nuances of buying or selling these, and it’s easy to see how a homebuyer or seller can feel overwhelmed. And let’s not even get into the challenges of valuation in a market that’s still trying to find its legs.
Face it, today’s market is far more complex and fraught with risk that anything our parents had to deal with. Now more than ever, it is crucial to seek out the advice and counsel of experts. This is not an era where it makes sense to go it alone. Your REALTOR® can guide you through the minefield of today’s real estate market, assist with financing needs, recommend competent local real estate attorneys, home inspectors and other service providers critical to a disaster-free transaction.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Face it, today’s market is far more complex and fraught with risk that anything our parents had to deal with. Now more than ever, it is crucial to seek out the advice and counsel of experts. This is not an era where it makes sense to go it alone. Your REALTOR® can guide you through the minefield of today’s real estate market, assist with financing needs, recommend competent local real estate attorneys, home inspectors and other service providers critical to a disaster-free transaction.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
I Hate to Sound Like a Broken Record, But...
...the clock is ticking on the extended and expanded homebuyer tax credit. First-time buyers can receive a tax credit of up to $8,000 and repeat homebuyers can receive up to $6,500. That's money directly in your pocket and it's not exactly chump change. The catch is, you have to have the home purchase under contract by April 30th and the sale has to close by July 1st. There are some other qualifiers, too. For details go to www.BobDohn.com and click on the tab titled "FREE Info for Buyers."
Granted, today's real estate market is not all tea and roses if you have a home to sell. For some, the best move right now is no move at all. But if you've ever thought about upsizing, downsizing, relocating or just moving to new turf, you at least owe it to yourself to explore the possibilities. And for 1st-time home buyers and repeat buyers with no home to sell, now is the best time I've seen in my nearly 38 years in the real estate arena to buy a home. Besides the tax credit, most economic pundits agree that prices are as low as they're likely to get; mortgage interest rates continue to remain at historic low levels, though for how long we don't know; and the selection of homes is still outstanding, with many seriously motivated sellers.
So, the question of the day is: What are you waiting for???
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Granted, today's real estate market is not all tea and roses if you have a home to sell. For some, the best move right now is no move at all. But if you've ever thought about upsizing, downsizing, relocating or just moving to new turf, you at least owe it to yourself to explore the possibilities. And for 1st-time home buyers and repeat buyers with no home to sell, now is the best time I've seen in my nearly 38 years in the real estate arena to buy a home. Besides the tax credit, most economic pundits agree that prices are as low as they're likely to get; mortgage interest rates continue to remain at historic low levels, though for how long we don't know; and the selection of homes is still outstanding, with many seriously motivated sellers.
So, the question of the day is: What are you waiting for???
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
How much political correctness is necessary?
Today’s rant has less to do with my expertise as a REALTOR® and more to do with plain common sense. Here’s an excerpt from a newspaper article I recently read: “Trying to take the sting out of the recession, employers shy away from the word ‘layoff.’ The alternatives: smartsizing, decruitment, involuntary attrition, employee simplification, corporate outplacing, negative employee retention and career-change opportunity. Last year, Nokia Siemens Networks announced a ‘synergy-related head count restructuring.’”
Let’s get real! Is this proliferation of euphemisms really necessary? Why can’t companies just do as Donald Trump does so famously and tell people, “You’re fired!?” Frankly, I think Donald’s way is more dignified for both parties. Perhaps if companies invested more time and energy improving their products and services and less of it thinking up clever ways to tell people they’re fired, the bottom line would improve and more people could be retained. Just a thought.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Let’s get real! Is this proliferation of euphemisms really necessary? Why can’t companies just do as Donald Trump does so famously and tell people, “You’re fired!?” Frankly, I think Donald’s way is more dignified for both parties. Perhaps if companies invested more time and energy improving their products and services and less of it thinking up clever ways to tell people they’re fired, the bottom line would improve and more people could be retained. Just a thought.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Small Projects, Big Bang
Judicious home remodeling is still worth the investment, according to Remodeling magazine's annual "Cost vs. Value Report."
By G.M. Filisko
Uncertainty and restraint are the order of the day in this economy, and that sense of caution is reflected in home owners’ return on their investment in remodeling projects, according to REALTORS® in 80 metropolitan markets surveyed by Remodeling magazine for this year’s Cost vs. Value Report.
The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects—siding and window replacement using a variety of materials—involve home maintenance that costs less than $14,000.
Two more—adding an attic bedroom or a wood deck—reinforce the notion that boosting the amount of livable space in and around your home will attract buyers who are increasingly looking for more room for their buck. In past years, converting an attic into a bedroom was a project that landed squarely in the middle of the rankings, but this year it leapfrogged over other categories into third place. It’s an admittedly pricey project, with an average national cost of nearly $50,000, but it generates an average national return of 83.1 percent and a better-than-100 percent return on investment, according to REALTORS® in 14 of the 80 cities surveyed. Adding a wood deck is much more economical, with an average national cost of slightly more than $10,000. Its average national return is 80.6 percent, but in six cities, its return is estimated at 100 percent or greater.
The six siding and window home maintenance projects in the top 10, combined with the project with the biggest return on investment—a mid-range entry door replacement—prove something that every sales associate tells sellers throughout the country: First impressions count. A mid-range entry door replacement, a project new to the survey this year, is the only home remodeling project that REALTORS® expect to generate a full return for the money nationally. It’s the least expensive of the 33 projects included in the analysis, yet it brings a whopping average national return on investment of 128.9 percent. It generates a better-than-100 percent return in 48 of the 80 cities, according to REALTORS® surveyed, and in several cities, its return is estimated at more than double its cost.
Additional data prove the value of restraint. Upgrading kitchens and baths is still a smart bet. However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels. A mid-range kitchen remodel brings an average 72.1 percent return on investment, while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested. A mid-range bathroom project has an average 71 percent cost recovery, but the average recovery on an upscale bathroom project is nearly 10 points lower, at 61.6 percent.
The only upscale projects that cracked the top 10 were the home maintenance projects of fiber-cement siding replacement and vinyl window replacement. The average cost of fiber-cement siding is more than $13,000, but its return on investment reached 83.6 percent, placing it squarely in second place in the survey. The average cost of vinyl window replacement is nearly $14,000, and it generates an average return of 76.5 percent, or tenth place in the survey. Of the 12 upscale projects, nine landed in the bottom half.
Overall, home owners recouped an average of 63.8 percent of their investment in 33 different home improvement projects, according to REALTORS® who responded to the survey. The expected cost recoup was generally down from previous years in line with the drop in home prices nationally (see page 23). The return on home owners’ investment in remodeling projects has declined an average of 3.5 percentage points between 2008 and 2009. That’s down from the 2.7 point drop between 2007 and 2008 and much less than the 5.5 point drop between 2006 and 2007 and the 10.5 point drop from 2005 to 2006.
Zooming in from the national to the city level, Honolulu sits atop the rankings for having the most projects—18—that generate at least a full return on investment. In Honolulu, adding a wood deck, completing a minor kitchen remodel, adding fiber-cement siding, and replacing an entry door bring the highest returns, ranging from 121.1 to 195.3 percent return on investment. San Francisco is closest behind with 10 projects generating at least a full return on investment. Adding a master suite, doing a minor kitchen remodel, and replacing an entry door have the biggest returns, producing between 112.2 and 119.1 percent return on investment.
One surprise: Despite the common perception that contractors are hungry for work and therefore willing to wheel and deal, the average national cost of every project surveyed has gone up, though at a slower rate than in the previous year.
Courtesy of Remodeling Magazine
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
By G.M. Filisko
Uncertainty and restraint are the order of the day in this economy, and that sense of caution is reflected in home owners’ return on their investment in remodeling projects, according to REALTORS® in 80 metropolitan markets surveyed by Remodeling magazine for this year’s Cost vs. Value Report.
The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects—siding and window replacement using a variety of materials—involve home maintenance that costs less than $14,000.
Two more—adding an attic bedroom or a wood deck—reinforce the notion that boosting the amount of livable space in and around your home will attract buyers who are increasingly looking for more room for their buck. In past years, converting an attic into a bedroom was a project that landed squarely in the middle of the rankings, but this year it leapfrogged over other categories into third place. It’s an admittedly pricey project, with an average national cost of nearly $50,000, but it generates an average national return of 83.1 percent and a better-than-100 percent return on investment, according to REALTORS® in 14 of the 80 cities surveyed. Adding a wood deck is much more economical, with an average national cost of slightly more than $10,000. Its average national return is 80.6 percent, but in six cities, its return is estimated at 100 percent or greater.
The six siding and window home maintenance projects in the top 10, combined with the project with the biggest return on investment—a mid-range entry door replacement—prove something that every sales associate tells sellers throughout the country: First impressions count. A mid-range entry door replacement, a project new to the survey this year, is the only home remodeling project that REALTORS® expect to generate a full return for the money nationally. It’s the least expensive of the 33 projects included in the analysis, yet it brings a whopping average national return on investment of 128.9 percent. It generates a better-than-100 percent return in 48 of the 80 cities, according to REALTORS® surveyed, and in several cities, its return is estimated at more than double its cost.
Additional data prove the value of restraint. Upgrading kitchens and baths is still a smart bet. However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels. A mid-range kitchen remodel brings an average 72.1 percent return on investment, while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested. A mid-range bathroom project has an average 71 percent cost recovery, but the average recovery on an upscale bathroom project is nearly 10 points lower, at 61.6 percent.
The only upscale projects that cracked the top 10 were the home maintenance projects of fiber-cement siding replacement and vinyl window replacement. The average cost of fiber-cement siding is more than $13,000, but its return on investment reached 83.6 percent, placing it squarely in second place in the survey. The average cost of vinyl window replacement is nearly $14,000, and it generates an average return of 76.5 percent, or tenth place in the survey. Of the 12 upscale projects, nine landed in the bottom half.
Overall, home owners recouped an average of 63.8 percent of their investment in 33 different home improvement projects, according to REALTORS® who responded to the survey. The expected cost recoup was generally down from previous years in line with the drop in home prices nationally (see page 23). The return on home owners’ investment in remodeling projects has declined an average of 3.5 percentage points between 2008 and 2009. That’s down from the 2.7 point drop between 2007 and 2008 and much less than the 5.5 point drop between 2006 and 2007 and the 10.5 point drop from 2005 to 2006.
Zooming in from the national to the city level, Honolulu sits atop the rankings for having the most projects—18—that generate at least a full return on investment. In Honolulu, adding a wood deck, completing a minor kitchen remodel, adding fiber-cement siding, and replacing an entry door bring the highest returns, ranging from 121.1 to 195.3 percent return on investment. San Francisco is closest behind with 10 projects generating at least a full return on investment. Adding a master suite, doing a minor kitchen remodel, and replacing an entry door have the biggest returns, producing between 112.2 and 119.1 percent return on investment.
One surprise: Despite the common perception that contractors are hungry for work and therefore willing to wheel and deal, the average national cost of every project surveyed has gone up, though at a slower rate than in the previous year.
Courtesy of Remodeling Magazine
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Happy Thanksgiving to All!
I hope everyone who reads this has had a terrific Thanksgiving holiday. Personally, my wife and I have spent a wonderfully chaotic few days enjoying one of the increasing rare extended gatherings of all my children and grandchildren at the same time and place (our house!). The weariness brought on by the challenges of the year nearly ended have melted away. I am exhausted, but renewed. Speaking strictly from a business perspective, I can’t honestly say I’ll be sorry to leave 2009 behind; nonetheless, it was another rewarding year in terms of new relationships forged and old relationships reinforced. I’m deeply grateful for the many opportunities to help folks achieve their real estate goals. It’s looking more and more like we’re at the beginning of a market rebound, and with any luck 2010 will be an even better year. I look forward to continuing to provide the knowledgeable, caring and effective service you’ve come to expect. Please keep me in mind if I can ever be of assistance to you or someone you know regarding any real estate matter anywhere in the U. S. or across the globe!
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
A New Bandwagon to Jump On!
Yesterday, Congress extended and expanded the tax credit program relating to home purchases. The new program extends the $8,000 1st-time homebuyer tax credit through April of next year and expands the program to include a $6,500 credit for current homeowners who sell their homes and purchase another, provided they have lived in their present home for at least five consecutive years in the past eight years. To qualify, the home purchase must be under contract by April 30, 2010 and the transaction must be closed by July 1st. The income limits for eligible home buyers have also been expanded to $125,000 for single buyers and $225,000 for couples, and the purchase price of the home cannot exceed $800,000.
A tax credit is better than a tax deduction in that it represents a dollar-for-dollar reduction of your federal income tax liability. If your tax liability is already zero, then you get the credit as a refund!
It is presumed that President Obama will sign the bill within the next few days. Once it becomes law, the intended net effect will be a much needed boost for the housing industry. First-time home buyers who missed the boat during the previous program have a second shot at cashing-in on this path to home ownership. Home sales in the second quarter of this year were spurred significantly by first-time buyers taking advantage of the tax credit. Including existing home owners in the program taps into a huge additional reservoir of pent-up demand among people who want to make move, but have been held back by a depressed market. Even homeowners who don’t plan to move stand to gain under this program as increased demand further stabilizes home prices.
What effect all this will ultimately have on home values and interest rates is hard to say. It does seem likely, however, that it will fuel demand, and that typically pushes up costs. Now may be the best opportunity to jump into the market. Current home prices and mortgage interest rates are at bargain levels. How long that will continue to be the case is uncertain as the market continues to rebound.
For more details about how this program might benefit you, go to my website, www.BobDohn.com and click on the tab FREE Info for Buyers.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
A tax credit is better than a tax deduction in that it represents a dollar-for-dollar reduction of your federal income tax liability. If your tax liability is already zero, then you get the credit as a refund!
It is presumed that President Obama will sign the bill within the next few days. Once it becomes law, the intended net effect will be a much needed boost for the housing industry. First-time home buyers who missed the boat during the previous program have a second shot at cashing-in on this path to home ownership. Home sales in the second quarter of this year were spurred significantly by first-time buyers taking advantage of the tax credit. Including existing home owners in the program taps into a huge additional reservoir of pent-up demand among people who want to make move, but have been held back by a depressed market. Even homeowners who don’t plan to move stand to gain under this program as increased demand further stabilizes home prices.
What effect all this will ultimately have on home values and interest rates is hard to say. It does seem likely, however, that it will fuel demand, and that typically pushes up costs. Now may be the best opportunity to jump into the market. Current home prices and mortgage interest rates are at bargain levels. How long that will continue to be the case is uncertain as the market continues to rebound.
For more details about how this program might benefit you, go to my website, www.BobDohn.com and click on the tab FREE Info for Buyers.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
REALTORS(r) Lead the Way!
I saw an inspirational item at the Chicago History Museum yesterday. It was about a man named William D. Kerfoot, who moved to Chicago in 1861 and got into the real estate business. (At that time, the “REALTOR®” moniker hadn’t been coined as yet. In fact neither had the National Association of Realtors®. The latter came into being in 1909, initially as the National Association of Real Estate Exchanges. The name was subsequently changed to the National Association of Real Estate Boards [NAREB] in 1916, which is the same year the term “REALTOR®” was devised. In 1949 and 1950, respectively, “REALTOR®” and “REALTORS®” were registered with the U. S. Patent and Trademark Office as NAREB trademarks. In 1972, NAREB changed its name to the National Association of REALTORS®, which it retains to this day. It is one of the largest trade associations in the United States, with current membership of over 1.1 million men and women. But I digress…)
Anyway, Mr. Kerfoot, like so many Chicagoans, was wiped out in the great Chicago fire of 1871, but that did not dampen his entrepreneurial spirit. The very next day after the fire ended, he reopened his business in a small shack that bore a sign attesting to his faith and courage. The sign read: "All gone but WIFE CHILDREN and ENERGY." His story became one of the most popular published accounts of the great fire.
Today, faced with economic hardships that may nearly (but not completely) rival the Chicago fire, we can still take strength in one man’s undying spirit and rise to meet the challenge!
Anyway, Mr. Kerfoot, like so many Chicagoans, was wiped out in the great Chicago fire of 1871, but that did not dampen his entrepreneurial spirit. The very next day after the fire ended, he reopened his business in a small shack that bore a sign attesting to his faith and courage. The sign read: "All gone but WIFE CHILDREN and ENERGY." His story became one of the most popular published accounts of the great fire.
Today, faced with economic hardships that may nearly (but not completely) rival the Chicago fire, we can still take strength in one man’s undying spirit and rise to meet the challenge!
| Bob Dohn Coldwell Banker Residential Brokerage 140-A S. Roselle Rd., Schaumburg, IL 60193 Direct phone: 847-301-3126 Web: www.BobDohn.com |
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What YOU Can Do to Help Improve Your Home Value
Want to improve the value of your home in today’s challenging market? Contact your senators and congressmen and urge them to support the National Association of REALTORS® initiative to extend the 1st-time homebuyers tax credit. Studies show that recent positive real estate market results have been fueled largely by first-time buyers seeking to take advantage of the $8,000 tax credit offered by the federal government. But this stimulus program is scheduled to end in approximately two months on November 30th. NAR is spearheading a move to extend it through 2010 to help keep the housing sector on a positive track. Even if you’re already a homeowner and even if you’re not planning to sell your home any time soon, you have a stake in the outcome of this effort, because a healthy real estate market is necessary for strong home values.
A vibrant real estate market is also vital to the overall economy in many ways. When people buy homes, they usually also invest in a multitude of products and services. Moving companies, insurance companies, manufacturers and purveyors of home improvement items, such as paint, draperies, lighting and plumbing fixtures, landscaping materials and services, appliances, carpeting and flooring products, and many, many, many other kinds of companies all rely on a viable real estate market.
Home ownership helps build strong communities, too. It has been shown that neighborhoods with a high percentage of homeowners are generally more stable and have less crime, better schools and more engaged citizens. Let’s keep housing—and the entire economy—heading in the right direction. It’s good for us all!
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
A vibrant real estate market is also vital to the overall economy in many ways. When people buy homes, they usually also invest in a multitude of products and services. Moving companies, insurance companies, manufacturers and purveyors of home improvement items, such as paint, draperies, lighting and plumbing fixtures, landscaping materials and services, appliances, carpeting and flooring products, and many, many, many other kinds of companies all rely on a viable real estate market.
Home ownership helps build strong communities, too. It has been shown that neighborhoods with a high percentage of homeowners are generally more stable and have less crime, better schools and more engaged citizens. Let’s keep housing—and the entire economy—heading in the right direction. It’s good for us all!
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Will 2009 be the year everyone wishes they had bought real estate?
Lawrence Yun, Chief Economist of the National Association of Realtors® recently said in REALTOR Magazine, “After four years of declines, home sales on a national basis finally appear to be turning around.” According to Yun, data suggests there has been a downward overcorrection of home prices. He goes on to say that as a result of this, markets “could experience a snap back in home prices, with price gains in the high single digits or low double digits, compared with historical annual price appreciation of 4 percent.”
Yun feels that complete economic recovery will take a while, due to a number of factors, not the least of which is high unemployment and record federal budget deficits pushing mortgage interest rates up somewhat, but he sees a fundamental change in consumers’ view of home values, noting “Buyers are no longer hesitant about home purchases on the fear of further price declines. And that sets the stage for a steady release of pent-up housing demand.”
Yes, indeed, many people who are slow to make the move may be wishing they’d bought real estate in 2009. Will you be among them?
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumbug, IL 60193
Bob@BobDohn.com
www.BobDohn.com
Direct Phone: 847-301-3126
Yun feels that complete economic recovery will take a while, due to a number of factors, not the least of which is high unemployment and record federal budget deficits pushing mortgage interest rates up somewhat, but he sees a fundamental change in consumers’ view of home values, noting “Buyers are no longer hesitant about home purchases on the fear of further price declines. And that sets the stage for a steady release of pent-up housing demand.”
Yes, indeed, many people who are slow to make the move may be wishing they’d bought real estate in 2009. Will you be among them?
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumbug, IL 60193
Bob@BobDohn.com
www.BobDohn.com
Direct Phone: 847-301-3126