Schaumburg Illinois and Suburbs Real Estate Blog

A New Year In Real Estate Begins

Bob Dohn — Mon, 23 Jan 2012 13:33:27 GMT

As we launch into 2012, here are some interesting statistics from the Illinois Association of REALTORS® on residential real estate market conditions:

Interest rates continued to drop. In December the 30-year fixed-rate mortgage in the North Central region was 3.94 percent for December 2011, according to Freddie Mac. In December 2010 the rate was 4.8 percent. This once-in-a-generation opportunity has created more sales and refinancing interest. In short, the rates are seen by many homebuyers as too good to pass up.

Consumer confidence is increasing as the labor market appears to be improving. According to a Thomson Reuters/University of Michigan survey, an index of consumer sentiment reached its highest level in eight months. The Conference Board’s Consumer Confidence Index also showed gains, reporting levels last seen in April 2011. Better consumer confidence translates to more people comfortable with making a home purchase.

The decrease in median residential sales prices means that price points are reaching truly attractive levels for consumers who have put off such purchases in the face of economic uncertainty. According to data compiled by the Illinois Association of REALTORS®, the last time consumers saw home prices this low ($137,500 in December 2011) was in 2000 when the median price was $140,800.

There have been six straight months of increases in the number of single-family home sales. There was a significant turning point in July. The swing since July has been as high as 27.1 percent (August) and as low as 13.9 percent (September).

Although there were home sales gains in the second half of 2011, they were not enough to swing the numbers into positive territory for the full year. The good news is that strong sales in the second half of the year caused year-to-year comparisons to be relatively flat (down just a tenth of percent).

While overall sales of single-family homes appeared to be gaining traction in the second half of 2011, median home prices still struggled. Year-over-year comparisons show that the median home price recorded decreased in every month. The worst months for median price declines were April (-12.9 percent) and March (-12.2 percent). The best was July (-5 percent).

Fifty-two counties out of 102 in Illinois (51 percent) showed increases in home sales from 2010 to 2011. Forty-three counties showed gains in the median price.

Chicago PMSA All counties in the Chicago PMSA showed gains in home sales in December. DeKalb County led the pack with a 44.7 percent gain over December 2010, followed by Grundy County with 40.7 percent. Cook County lagged with a gain of 12.3 percent.

For the year, all counties in the PMSA except Cook showed home sales gains. Kendall County was the leader with a 13.3 percent gain in home sales over 2010. Cook County saw a decrease of 2.5 percent for the year.

Most Chicagoland PMSA counties showed decreases in December median prices. Grundy (3.7 percent) was the lone exception. DeKalb (-21.1 percent) and Will (-19.3 percent) counties had the steepest declines.

Previous month comparisons show some sales increases in the Chicago PMSA (November, 2011 to December, 2011.) Only Grundy County (0 percent) showed no gain for the measurement period. DeKalb (23.6 percent) and Will (18.5 percent) counties showed the strongest month-to-month gains.

A Challenge to My Fellow Real Estate Agents

Bob Dohn — Sun, 20 Nov 2011 16:58:18 GMT

These remarks--some might call it venting--are directed to my brothers and sisters in the real estate community who list residential properties for sale. One of the maxims of selling something is that the prospective buyer must be exposed to that which you want him to purchase. In real estate that usually means the buyer has to be able to inspect the property being offered. While the Internet has enabled "virtual" showings of real estate listings, in the vast majority of cases it's still necessary for the buyer to physically tour a home before making a purchase decision. Common sense would thus seem to dictate that responsible listing agents should remove as many impediments as possible to the prospective buyer 's convenience in seeing their listings. This responsibility escalates to a critical level in today's challenging market, where competition is more plentiful than ever, and not fulfilling it constitutes nothing short of gross negligence on the part of a listing agent.

Why is it, then, that when attempting to schedule appointments to show homes, it seems invariable that there will be problems obtaining timely confirmation? And why do so many agents require that showing appointments be made directly through them, when they're not always available to handle these requests promptly and efficiently? What happens when a buyer's agent has clients at his or her desk who want to see a home on short, but reasonable, notice and the listing agent can't be reached? There are systems and services available at nominal cost that make these problems avoidable. The successful firms and agents know this and take advantage of them.

Missed opportunities for listings to be viewed in person by prospective purchasers hurt everyone. They deprive the seller and the buyer of an opportunity to create a transaction; they cost the listing agent and the buyer's agent a commission opportunity; and they make the real estate profession--especially the listing agent and his brokerage company--look incompetent.

Lost sales opportunities increase marketing times and marketing costs for listing companies and agents.With so many brokerages and individual licensees struggling financially, it doesn't make sense that there are not good systems in place for scheduling appointments to show homes. Nor does it make sense that agents do not educate their sellers on the crucial importance of being reachable and ready to show their home at all times. A little bit of pre-planning goes a long way here. To be sure, there are legitimate occasions that require a seller to decline a showing request or require a certain amount of advance notice, but these are the exception, not the rule.

Gone are the days (if they ever existed in the first place) when it was only necessary for lazy and inept agents to place a home in the MLS and wait for the offers to pour in. Today's real estate market requires both the agents and their sellers to work harder and smarter to make their listings easy for buyers to see and purchase.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Rent vs. Own

Bob Dohn — Wed, 09 Nov 2011 12:32:00 GMT

Fact: Rents are rising

Fact: Rent is not tax deductible

Fact: Paying rent adds to your landlord's bottom line and does nothing for your wealth

Fact: Mortgage interest rates are at the lowest point … EVER

Fact: Home prices are the lowest in a decade

Fact: Buying power is the strongest it has been in 40+ years

Fact: Nobody will send us a memo when the market is going to turn around

Fact: Nobody will send us a memo when rates will spike

Fact: Buyers can purchase a home with as little as Zero - 5% down

Fact: Home buyers enjoy huge tax benefits

Fact: Home prices and rates will go up due to many factors

Fact: It is impossible to pick the bottom of the market

Fact: Real estate is still the best long-term investment available

Sound Familiar?

Bob Dohn — Wed, 14 Sep 2011 16:46:58 GMT

Here is an excerpt from a piece written by Benjamin Franklin (yes, THAT Benjamin Franklin) in his autobiography, which I am currently reading. It seems quite apropos to today's market and I thought we might take a lesson from it. The time reference of the piece is the early 1700's, well before the American Revolution. The young Franklin had just opened a printing shop in Philadelphia.

"There are croakers in every country, always boding its ruin. Such a one there lived in Philadelphia; a person of note, an elderly man with a wise look and a very grave manner of speaking; his name was Samuel Mickle. This gentleman, a stranger to me, stopped me one day at my door and asked me if I was the young man who had lately opened a new printing house. Being answered in the affirmative, he said he was sorry for me, because it was an expensive undertaking and the expense would be lost; for Philadelphia was a sinking place, the people already half-bankrupts or near being so; all of the appearances of the contrary, such as new buildings and the rise of rents, being to his certain knowledge fallacious, for they were in fact among the things that would ruin us. Then he gave me such a detail of misfortunes now existing or that were soon to exist that he left me half melancholy. Had I known him before I engaged in this business, probably I never should have done it. This person continued to live in this decaying place and to declaim in the same strain, refusing for many years to buy a house there because all was going to destruction; and at last I had the pleasure of seeing him give five times as much for one as he might have bought it for when he first began croaking."

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

The Dream Is Alive and Well

Bob Dohn — Tue, 14 Jun 2011 12:36:54 GMT

With so many talking heads seeming to declare the end of the home ownership as something desirable, one wonders if we are to become a nation of renters, with the pleasure of owning one's own home left only to a privileged few. Not if you ask the average American on the street! A recent study by the Pew Research Center indicates that Americans continue to see value in home ownership. In the Pew report 81% of adults surveyed agree that buying a home is the best long-term investment. Even current owners whose homes have lost value in the current stormy market still favor homeownership by 82%, and 81% of renters would like to own a home.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Proposed QRM Harms Creditworthy Borrowers and Housing Recovery

Bob Dohn — Wed, 27 Apr 2011 15:25:00 GMT

The following organizations, along with the National Association of REALTORS®, prepared an in-depth analysis of the impact of the proposed QRM regulation:

Center for Responsible Lending,
Community Mortgage Banking Project,
Mortgage Bankers Association,
Mortgage Insurance Companies of America, and
National Association of Home Builders.

They developed the joint white paper in advance of the House Subcommittee on Capital Markets and Government Sponsored Enterprises hearing on the Qualified Residential Mortgage, which took place on April 14, 2011.

The executive summary of the white paper, entitled, “Proposed QRM Harms Creditworthy Borrowers and Housing Recovery,” is provided below, or the entire white paper is available for download as a PDF. The executive summary was also issued as a joint statement.

Executive Summary (and statement)

In the midst of a very fragile housing recovery, the government is throwing a devastating, unnecessary and very expensive wrench into the American dream. First time homebuyers will have to choose between higher rates today or a 9-14 year delay while they save up the necessary down payment. And 25 million current homeowners would be locked out of lower refinancing rates because they lack the required 25 percent equity in their homes.

High down payment and equity requirements will not have a meaningful impact on default rates. But they will require millions of consumers, who are at low risk of default, to either put off buying a home or pay unnecessarily high rates. The government is penalizing responsible consumers, making homeownership more expensive or simply out of reach for millions. We urge regulators to develop a final rule that encourages good lending and borrowing without punishing credit-worthy consumers.

Download “Proposed QRM Harms Creditworthy Borrowers and Housing Recovery” white paper > (PDF: 680K

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Donald, You’re Fired!

Bob Dohn — Sun, 10 Apr 2011 10:59:00 GMT

Reprinted from FactCheck.org, a project of the Annenberg Public Policy Center

Trump repeats false claims about Obama's birthplace.

April 9, 2011

Summary

If Donald Trump worked for us, we’d have to say: "Donald, you’re fired — for incompetence." The successful developer and TV celebrity says he’d make a good president, and maybe he would — we take no stand either way about that. But when it comes to getting facts straight, he fouls up again and again on the basics of President Barack Obama’s birth. As a rookie reporter, he just wouldn’t make it.

He claims the president’s grandmother says Obama was born in Kenya. In fact, the recording to which he refers shows Sarah Obama repeatedly saying through a translator: "He was born in America."
He claims that no hospital in Hawaii has a record of Obama’s birth. Hospital records are confidential under federal law, but Honolulu’s Kapi’olani Medical Center has published a letter from Obama calling it "the place of my birth," thus publicly confirming it as his birthplace.
He insists that the official "Certification of Live Birth" that Obama produced in 2008 is "not a birth certificate." That’s wrong. The U.S. Department of State uses "birth certificate" as a generic term to include the official Hawaii document, which satisfies legal requirements for proving citizenship and obtaining a passport.
He claims that there’s no signature or certification number on the document released by Obama. Wrong again. Photos of the document, which we posted in 2008, clearly show those details.
He says newspaper announcements of Obama’s birth that appeared in Hawaii newspapers in 1961 "probably" were placed there fraudulently by his now-deceased American grandparents. Actually, a state health department official and a former managing editor of one of the newspapers said the information came straight from the state health department.
He claims "nobody knew" Obama when he was growing up and "nobody ever comes forward" who knew him as a child. "If I ever decide to run, you may go back and interview people from my kindergarten," Trump said. Well, two retired kindergarten teachers in a 2009 news story fondly recall teaching a young Barack Obama.

The evidence that Obama was born in the U.S.A. is so overwhelming that we haven’t had much to say lately about the sort of bogus claims that Trump repeats. Hawaii’s top official in charge of vital records stated long ago, for example, that the confidential records underlying Obama’s official birth certificate show that he was born in Hawaii and is "a natural born American citizen."

But when a leading prospect for the Republican presidential nomination embraces and repeats these spurious claims and groundless conspiracy theories on national television, we are forced to wade into this swamp once again. For details of where Trump goes wrong, and full documentation of the facts, please read on to our Analysis section.

Note: This is a summary only. The full article with analysis, images and citations may be viewed on our Web site: http://factcheck.org/2011/04/donald-youre-fired/

Consider the Whole Picture When Deciding the Right Time to Buy a Home

Bob Dohn — Wed, 02 Mar 2011 14:10:00 GMT

Something that is frequently overlooked in the quest to obtain the greatest value when purchasing a home is that the price of a home is not the only component of the overall cost of ownership for the vast majority of buyers. The expense of financing the purchase makes up a huge part of the total picture. While home values still continue to be soft or declining in many markets, the cost of financing those homes is on a generally upward trajectory. Recent government signals that it intends to be less of a force in home financing will likely accelerate that process. If one is thinking about buying a home, consideration should be given to the fact that rising interest rates will offset any possible future erosion in value at least to some degree, if not entirely.

Consideration should also be given to the fact that, while these are not "tea and roses" times, the overall economic trend is moderately positive. By an overwhelming majority, Americans still see value in home ownership, which means the demand is out there and it's just a question of time before housing markets stabilize and equity gains begin to return. The only item open to debate is how long that will take. While there are plenty of opinions on that question, the majority of experts seem to feel that, barring any unforeseen turn of events, some degree of stabilization will occur within the next year.

As to whether the glass is half empty or half full, that depends on your overall view of life, I guess.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

New Law Requires Cook County Seniors to Reapply Annually for Senior Citizen Exemption

Bob Dohn — Fri, 11 Feb 2011 13:04:00 GMT

Cook County Assessor Joseph Berrios was joined by city and county officials on Monday to announce a massive mailing targeted at Senior Citizen homeowners who must now re-apply to receive an annual reduction in their property taxes.

“It’s critical in the coming days that seniors watch for the Senior Citizen Exemption application in the mail,” Assessor Berrios said. “They will owe more on their property tax bills if they fail to fill out this very important application. I don’t want anyone to miss out on their right to save money.”

A new Illinois law requires that seniors re-apply for the Senior Citizen Exemption. On Monday, the Assessor’s office mailed out nearly 300,000 applications containing both the Senior Citizen and Senior Freeze Exemptions to taxpayers who received a senior exemption last year.

“My top priority during this legislative session will be getting this unfair law overturned,” Assessor Berrios said. “I don’t want seniors to run the risk of forgetting to fill out the application and seeing a tremendous increase on their second-installment tax bills.”

Berrios did stress however that seniors must reapply for the Senior Citizen Exemption this year in order to receive the exemption savings on their tax bills. He also said that his office would be hosting numerous senior outreach meetings to make seniors aware of the new annual application requirement.

The Senior Citizen Exemption provides tax relief by reducing the equalized assessed valuation of an eligible residence. This savings is in the form of a deduction on the second-installment property tax bill. Seniors receiving the Senior Citizen Exemption automatically qualify for the Homeowner Exemption, and do not have to apply for it separately.

Seniors who do not receive applications in the mail but believe they are entitled to the exemption, may download a form by visiting www.cookcountyassessor.com. They can also call (312) 443-7550.

To reach as many people as possible, the Assessor’s office is being assisted in senior outreach by the City of Chicago. The City will have the applications available at its six senior regional centers throughout the city.

“Seniors have worked hard all their lives and should receive all the tax relief they deserve. Senior property owners in Chicago should call 3-1-1 to make sure they are receiving all their exemptions and receive assistance if they do not have all their exemptions," Mayor Richard M. Daley said.

Many elected officials joined the Assessor Monday to voice their concerns about the new annual application requirement.

“It is important for seniors to re-apply for their exemptions so that they do not miss out in the savings that are due to them. It is unfortunate that it is necessary to send these notices to our senior citizens each year, and I look forward to the General Assembly passing legislation that will make this process less confusing and more convenient,” Cook County Commissioner Elizabeth Gorman said.

To qualify for the Senior Citizen Exemption for the taxable year 2010, the property owner must have:

Been born prior to or in the year 1945,

Owned the property, or have a lease or contract which makes them responsible for the real estate taxes, and

Used the property as a principal place of residence

In addition to the Senior Citizen Exemption, seniors on limited incomes may also qualify for the Senior Freeze Exemption. This exemption freezes the equalized assessed value of their property. To qualify for the Senior Freeze Exemption for the taxable year 2010 taxpayers must have:

-Been born prior to or in the year 1945,

-A total household income of $55,000 or less for income tax year 2009,

-Owned the property or had a legal, equitable or leasehold interest in the property on January 1, 2009 and January 1, 2010,

-Used the property as a principal place of residence as of January 1, 2009 and January 1, 2010, and

- Been liable for the payment of 2009 and 2010 property taxes.

Annual application is also required for the Senior Freeze Exemption.

Eligible seniors who have never applied for the senior exemptions in the past may visit the Assessor’s Web site and download an application or contact the Assessor’s Office and request a form be mailed to them.

“We will continue our public outreach efforts in order to reach as many seniors as possible,” Assessor Berrios said. “We want to do everything to ensure that Cook County seniors continue to receive all the money-saving exemptions to which they are rightfully entitled.”

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Calling All Investors!

Bob Dohn — Tue, 08 Feb 2011 02:04:00 GMT

FHA EXTENDS ANTI-FLIPPING WAIVER
Source: Coldwell Banker Home Loans Mortgage Update

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, FHA has extended its temporary waiver of the agency's anti-flipping rule. The extension, announced on January 28, 2011,is intended to accelerate the resale of foreclosed homes in areas struggling to overcome possible property abandonment .

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. Early last year, FHA temporarily waived this regulation through January 31, 2011. This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

It’s interesting to note that since the original waiver went into effect last February, FHA has insured more than 21,000 mortgages worth over $3.6 billion on properties resold within 90 days of acquisition. Because of past restrictions, FHA borrowers have often been shut out from buying affordable properties. This action enables borrowers, especially first-time buyers, to take advantage of this opportunity and buy a home that has recently been rehabilitated. It will also help to move more foreclosed properties off the market and reduce the number of vacant homes in neighborhoods throughout this country.

The extension is effective through December 31, 2011, unless otherwise extended or withdrawn by FHA. All other terms of the waiver will remain the same, and HUD continues to invite public comment on it. The waiver contains strict conditions and guidelines to assure that predatory practices are not allowed.

To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver continues to be limited to those sales meeting the following general conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

Here is the website for the HUD waiver or feel free to call me if you would like more detail: http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

A Relection on Christmas

Bob Dohn — Mon, 27 Dec 2010 13:45:00 GMT

After the long build-up followed by a burst of wonderful activity, Christmas is now behind us, though still in the rearview mirror. Thinking about it, I'm pleasantly exhausted, warmly fulfilled and slightly saddened to know that my life is about to drift back to its normal daily rhythm. Our family, thrown together in a frenzy of fun and chaos for a few precious days, is now quietly separating, each one slipping back into to their own spheres. Sure, we'll stay in touch and get together for various occasions, or for no particular occasion, and it will be wonderful. But it won't be the same. Ah, Christmas! What a delight! What a heartache.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Existing-Home Sales Resume Uptrend with Stable Prices

Bob Dohn — Fri, 24 Dec 2010 15:20:00 GMT

RISMEDIA, December 23, 2010—Existing-home sales got back on an upward path in November 2010, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6% to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9% below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.

Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.

Yun added that home buyers are responding to improved affordability conditions.

“The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”

The national median existing-home price for all housing types was $170,600 in November, up 0.4% from November 2009. Distressed homes have been a fairly stable market share, accounting for 33% of sales in November; they were 34% in October and 33% in November 2009.

Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15% in November, while short sales were discounted 10% in comparison with traditional home sales.

Total housing inventory at the end of November fell 4.0% to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30% in November from a record low 4.23% in October; the rate was 4.88% in November 2009.

“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”

A parallel NAR practitioner survey shows first-time buyers purchased 32% of homes in November, the same as in October, but are below a 51% share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.

Investors accounted for 19% of transactions in November, also unchanged from October, but are up from 12% in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31% in November, up from 29% in October and 19% a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.

Single-family home sales rose 6.7% to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3% below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2% above a year ago.

Existing condominium and co-op sales declined 1.9% to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2% below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5% from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.

Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.

Existing-home sales in the Midwest increased 6.4% in November to a level of 1.00 million but are 35.1% below the year-ago surge. The median price in the Midwest was $138,900, down 1.1% from November 2009.

In the South, existing-home sales rose 2.9% to an annual pace of 1.76 million in November but are 26.1% below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6% from a year ago.

Existing-home sales in the West jumped 11.7% to an annual level of 1.15 million in November but are 19.0% below the sales peak in November 2009. The median price in the West was $212,500, up 0.4% from a year ago.

For more information, visit www.realtor.org

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Change in Cook County Property Tax Due Date

Bob Dohn — Wed, 15 Dec 2010 16:30:00 GMT

Please note the following from the Cook County Treasurer’s website:

Tax Year 2010 First Installment Due Date Extended: A law recently passed by the Illinois Legislature changed the First Installment due date for the Tax Year 2010 property taxes (payable in 2011) to April 1, 2011. Please note that this will be a one-time change to the First Installment due date, which by law will revert back to March 1 in following years. A law passed by the Illinois Legislature in 2009 raises the First Installment tax from 50% to 55% of the prior year's total tax (or 55% of the adjusted tax if an assessment certificate of error is certified by the previous Nov. 30).

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126

Market on Rebound, But We've Got a Way to Go

Bob Dohn — Tue, 14 Dec 2010 20:14:00 GMT

Prior to the overheated markets of five or six years ago, annualized sales of homes in the U. S. were in the range of 5,000 to 6,000 units. Currently, we're in the mid 4,000's, but both the National Association of REALTORS® and Fannie Mae expect an increase in sales over the upcoming five quarters. Here are their projections:

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Some Interesting Housing Statistics

Bob Dohn — Wed, 24 Nov 2010 22:02:00 GMT

The November edition of the monthly Housing Scorecard produced by U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury to report on the health of the nation's housing market shows continued signs of stabilization. Here are some stats from the report:

In the 3rd quarter of this year approximately 1 million homeowners took advantage of the lowest 30-year mortgage rates in history by refinancing their homes. Since April of 2009, 8.9 million homeowners have refinanced, resulting in more stable home prices and $15.2 billion in annual borrower savings.

While home sales in the second half of the year have remained below those of the first quarter as a result of the expiration of the homebuyer tax credit, home prices have remained relatively level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity across the nation in the second quarter of 2010.

Loan modification arrangements were more than double the number of foreclosure completions between April, 2009 and the end of August, 2010.
The report goes on to warn that the recovery of the housing market continues to remain fragile and that full recovery is expected to take time. Nonetheless, these statistics offer further evidence that real estate is on the rebound and that homeownership still matters.

To view the complete report, as well as previous months' reports, go to www.hud.gov/scorecard.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

HOME OWNERSHIP MATTERS!

Bob Dohn — Mon, 22 Nov 2010 18:23:00 GMT

One of the long-standing benefits of homeownership in this country is the deductibility of mortgage interest paid on up to $1 million of combined debt on a principal residence and one secondary residence. Interest on up to $100,000 of home equity loan debt is also deductible. Lately there's increasing chatter about the possibility of eliminating this deduction as a way to trim a federal deficit that has been growing over the years spanning both Republican and Democratic administrations. This seems to me to be a misguided idea. Here's why:

Homeowners already pay the bulk of federal income taxes (between 80% and 90% of all federal income taxes collected). Increasing their tax burden would be unfair.

The economic meltdown spawned by reckless Wall Street practices and careless lending has homeowners reeling from declining property values. Eliminating this significant home ownership incentive would further erode those values--by an additional 15%, according to Lawrence Yun, Chief Economist for the National Association of REALTORS®. Since a vibrant housing market is a key economic driver (every home purchased pumps $60,000 into the economy and approximately 19% of GDP centers on housing), any further erosion in this arena would negatively impact many other sectors.

De-incentivizing homeownership would lessen the many other beneficial effects that homeownership creates. For example, owning a home has long been one of the best ways to build wealth. Historically, a homeowner's net worth is between 31 and 46 times greater than a renter's. Further, studies have shown that people who own homes are more likely to vote, volunteer and contribute to their neighborhoods. And homeowners move less frequently than renters, providing better neighborhood stability, reduced crime and improved neighborhood upkeep. Also, on average, children of homeowners do better in school and stay in school longer.

Last, but certainly not least, Americans value homeownership. By overwhelming margins they do not want the tax credit tampered with. In a survey commissioned in September of this year by the National Association of Home Builders, nearly 80% of respondents said they support retaining federal tax incentives to promote homeownership. Even when told that eliminating the mortgage interest deduction would help ease the federal deficit, 72% still opposed abolishing it. And these results cut across all partisan lines. Among Republican respondents, 72% wanted to retain the mortgage interest deduction; among Democrats, 64%; Independents, 75%; current homeowners, 75%. Even 55% of renters wanted to keep the interest deduction.

WAKE UP AND SMELL THE COFFEE, MEMBERS OF CONGRESS AND THE OBAMA ADMINISTRATION!

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

More Signs of Stabilization

Bob Dohn — Mon, 22 Nov 2010 18:19:00 GMT

According to a survey of nearly 90% of all first mortgage liens in the country by the Mortgage Bankers Association, the delinquency rate for home mortgages dropped in the third quarter of this year versus the previous quarter and also versus the same period last year.¹

This can be seen as a hopeful sign that the torrent of home foreclosures may soon start to ease. When that occurs, inventories of bank-owned homes should subsequently start to decline, leading the real estate market towards greater balance in terms of supply and demand. Once supply and demand reach a proper equilibrium we can anticipate value stabilization and even growth. Most of the expert opinions I read, however, indicate that any real estate comeback will be tempered by the employment situation and by anticipated interest rate increases, as it is widely viewed that today's rates are not going to be around forever. This offset will cause any future market growth to be sustainable, making for a good long term real estate prognosis.

Meanwhile, mortgage interest rates continue to hover at historically low levels, which significantly enhances a homebuyer's buying power. Normally, this would fuel demand and drive up home prices; however, the current glut of inventory, coupled with weak employment and public fear generated by negative media, are putting a damper on demand.

The bottom line as I see it is that home affordability has never been and will probably never be better than it is right now. Anyone in a position to make a move today should do it. Whatever short term pain or worry notwithstanding, in the long run you'll be glad you did. It doesn't seem likely that the foreseeable future will present homebuyers with the combined benefit of such low interest rates and price rollbacks as we have today.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

¹ Source: RISMedia (http://rismedia.com/)

If HE Says It Is Time To Buy a Home, BUY A HOME!

Bob Dohn — Tue, 05 Oct 2010 18:54:00 GMT

by The KCM Crew on October 5, 2010

“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”

– John Paulson 9/27/2010

WOW! That’s a powerful statement.

There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why:

Who is John Paulson?

Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

According to Forbes John Paulson is:
a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.

According to the Wall Street Journal Paulson is:
a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.

What did other financial players think of his statement?

The Wall Street Journal agrees with Paulson:
Ignore the critics. The odds have to be on his side…It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again.

And Forbes said:
As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”

Are others also saying now is the time to buy?

Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:

The Wall Street Journal

Professor Karl Case, founder of the Case Shiller House Pricing Index

The wealthiest families in the country and

70% of everyone else in America

Bottom Line

Thinking of buying a home? Are you taking advice from a friend or family member telling you that now is not the time? It may be time to listen to people who better understand the opportunities that exist in real estate today.

For People with a Realistic Vision of the American Dream, Buying a House Now Makes a Lot of Sense.

Bob Dohn — Wed, 22 Sep 2010 15:04:00 GMT

Think of it as an investment. The return on that investment comes in two forms. First, you live in the house and so it provides you with a real flow of valuable services. The second part of the yield on investment is the capital gain you receive if the home appreciates and you sell. Gains are excluded from taxation if the property is a primary residence and the gain is less than $250,000 for a single filer or $500,000 for a married couple filing jointly.

Do the math. Four years ago, the monthly payment on a $300,000 house with 20% down and a mortgage rate of about 6.6% was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20% down would carry a rate of about 4.2% and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.

-- "A Dream House After All," by Karl Case, New York Times, Sept. 1, 2010.
Karl Case, is professor emeritus of economics at Wellesley and co-creator of Standard & Poor's Case-Shiller housing index.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com

Amen, AMEN!

Bob Dohn — Tue, 21 Sep 2010 21:51:00 GMT

For a while now I've been expressing wonderment that more people are taking advantage of the unprecedented real estate market conditions that currently exist. In my 38+ years as an Illinois real estate licensee, I have never seen such a perfect storm of favorable buying conditions. Apparently, I'm not alone. Just take a look at what the Wall Street Journal and other notable sources are saying on the subject.

The Wall Street Journal

In an article last week, 10 Reasons To Buy a Home, Brett Arends reported:

Sure, maybe there’s more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” it’s time to say: Enough is enough.

He then posted 10 reasons to buy a home today:

You can get a good deal.
Mortgages are cheap.
You can save on taxes.
It will be yours.
You’ll get a better home.
It offers some inflation protection.
It’s risk capital.
It’s forced savings.
There is a lot to choose from.
Sooner or later, the market will clear.

The Nation’s Real Estate Pricing Expert

Karl E. Case is a professor emeritus of economics at Wellesley. Professor Case is also co-creator of Standard & Poor’s Case-Shiller House Price Index and is recognized as the one of the foremost authorities on real estate today. In a New York Times op-ed piece earlier this month titled, A Dream House After All, he said:

I have never quite understood what the American dream really means when it comes to housing. For some people, it means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive.

Others, however, think the American dream is owning property that appreciates by 30 percent a year, making a house into a vehicle for paying bills. But those kinds of dreams have become nightmares for the millions of foreclosed property owners who have found themselves sliding toward bankruptcy.

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense.

The Wealthy

The only segments of the housing market that are showing sales growth are the price points over $1 million. That market is up 6.1 % in the second quarter of this year vs. the second quarter last year. A recent survey showed that over 30% affluent buyers are planning to either build/buy a new primary residence or a second/vacation home in the next twelve months. It appears the wealthy believe now is the time to buy!

Everybody Else

Fannie Mae just released their National Housing Survey. The survey reported:

82% of respondents consider homeownership important to the economy, up two points from January.
70% of respondents think it is a good time to buy a house (of which 36% think it is a very good time to buy), up six points from January. This is also four points higher than the 2003 survey – well before home prices peaked – when 66 % said it was a good time.

Bottom Line

Our iconic financial newspaper, our nation’s real estate pricing expert, the wealthiest people in the country and 70% of everyone else think now is the time to buy a home. It probably makes sense to listen to them.

Thanks to the Keeping Current Matters blog (http://kcmblog.com/), from which the above information is taken.

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com