NapervilleRealEstate

After the Tax credits expire...

2010-05-14T09:43:00.000-07:00

May, 2010.. Naperville Inventory of homes for sale is about 959 homes, with an average market time of 227 days.. Even the lowest price range for detached single family homes is still above 150 days. $500-550,000 range has an average market time of 223 days..

Rates remain very affordable. The question still is will there be a 2nd downturn in housing prices..

Estimates of the shadow inventory range from 5-7 million homes that might come to the market in terms of foreclosure.

Feb. 22, 2010.. Real Estate Values Up/down?

2010-02-22T13:21:00.000-08:00

After seeing some more comforting data regarding real estate, the question is what is the direction for 2010. Several writers have mentioned 3 of the following developments. 1). the Federal Reserve ending their program of buying mortgage back securities after the 1st quarter. Currently, the Federal Reserve is supplying the lion's share of funds for mortgages. If they withdraw (as they have said they will), private sector money would need to replace the Fed's portion and most likely, the private sector will demand higher rates of interest.. Thus we could very well see interest rates rise from the very attractive levels currently. 2). Government sponsored programs such as 1st Time Buyer Tax Credit and Move up buyer tax credit will end shortly. Will buyers demand that sellers, in essence, provide these incentives by way of price drops. 3). Shadow inventory refers to the millions (5-7 millions) of foreclosed and soon to be foreclosed homes. This additional inventory would once again affect prices and the market was just making some head way with this issue. Home inventories were stabilizing to some extent. The foreclosure homes could push the market backwards and hurt prices again.. The effect of all these items could be a 2nd round of price drops.

Feb 1, 2010... Naperville Houses

2010-02-02T15:04:00.000-08:00

Welcome to my new real estate blog, Naperville Houses...
In all the conflicting articles about whether the economy is recovering, what is the real Percentage of unemployment and what is the state of the real estate market, there are a few given "truths" that very few writers ever mention.
That is, the Great House Hedge.
This is not a clever new scheme that is being used by investment bankers. It is not a get rich quick strategy that you need to watch on late night cable and attend a instant rich seminar.
It describes the average financial situation that most homeowners find themselves in..So many of us spend too much time trying to out think or out plan the investment cycle for most assets. When it comes to our home..one very simply principle is true. We own an asset that no one can truly predict what the direction will be.. Because it is our home and one source of comfort and safety, few of us would be willing to simply sell and not repurchase another home, be it smaller, be it in a warmer climate, be it an attached home.
Thus, the great hedge..do not ask whether the market is going up, going down, going sideways.
In large measure, what you will sell this current asset for is going to be offset to a large degree by the next home (asset) that you will buy. The home values are rising, you will get more by selling your current home, and then PAY MORE for the next home. Sure, you may spend more on the next home or spend less.
But you are going to pay more for the next home if home values are increasing, and you will pay less for the next new home if home values are declining.
It seems like some buyer feel more comfortable when it is a seller's market. This really does not make a lot of sense. Buyers should be happy when it's a buyers' market and not a seller's market. Herd mentality or something.
So, the next time you think about buying or selling a home when you already own a home, think about the Great House Hedge..