RE/MAX of Northern Illinois posted the July statistics for Chicagoland.

The news is good! Market absorption for listings and sales is down, which means the sales are occuring. At one point the inventory was 2.5 years out, now we have a 9 month surplus.

Here's the statistics of all of Chicagoland from RE/MAX International:

Chicago, IL
Number of Transactions
Current Month: 5,606
One month change: -38.87%
One year change: -22.74%
Active Inventory
Current Month: 72,545
One month change: 0.93%
One year change: -16.25%
Month's Supply of Inventory
Current Month: 9.2
Days on Market
Current Month: 75
One month change: -1.97%
One year change: -23.98%
Median Price – Sold
Current Month: $192,950
One month change: -6.79%
One year change: -8.7%

I would not be as concerned about the 1 year decline totals, but I am looking at the median price solds. More homes are coming on the market, but at a much slower rate. The MLS statistics are showing a market time of 240+ days to get sold. We are still declining in value, but not as drastically as the past two years.

Congratulations to a group of teens at Wheaton North High School are helping spread the message about radon's health hazards across Illinois through a 60-second YouTube video, See http://www.youtube.com/watch?v=Y50c8drq5Xk, titled- The Radon Ninja This group of teens produced and submitted to the "2010 Illinois High School Radon Video Contest." On April 22, the students learned their video won the contest during a presentation ceremony at the school. Representatives from the Illinois Emergency Management Agency (IEMA) and the American Lung Association of Illinois (ALA-IL), the contest sponsors, presented a $1,000 prize to the students, along with a $2,000 prize to their high school during the ceremony.

The winning video was selected from more than 30 videos submitted by high school students from throughout Illinois. The videos were made available for public viewing and voting, and vote totals were combined with judging by a panel of contest sponsors to determine the winner. The video is available on the IEMA and ALA-IL websites as part of the agencies' on-going efforts to increase public awareness of radon gas and the need to test homes for its presence.

1/15 homes in the U.S. have elevated levels (Over 4.0 PCI) of Radon.  Radon is a radioactive gas that has been found in homes all over the United States. It comes from the natural breakdown of uranium in soil, rock and water and gets into the air you breathe. Radon typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Your home can trap radon inside.

Any home can have a radon problem. This means new and old homes, well-sealed and drafty homes, and homes with or without basements. In fact, you and your family are most likely to get your greatest radiation exposure at home. That is where you spend most of your time.

 Radon Myths and Facts

MYTH #1: Scientists are not sure that radon really is a problem.

FACT: Although some scientists dispute the precise number of deaths due to radon, all the major health organizations (like the Centers for Disease Control and Prevention, the American Lung Association and the American Medical Association) agree with estimates that radon causes thousands of preventable lung cancer deaths every year. This is especially true among smokers, since the risk to smokers is much greater than to non-smokers. 

MYTH #2: Radon testing is difficult, time-consuming and expensive.

FACT: Radon testing is easy. You can test your home yourself or hire a qualified radon test company. Either approach takes only a small amount of time and effort.

MYTH #3: Homes with radon problems can't be fixed.

FACT: There are simple solutions to radon problems in homes. Thousands of homeowners have already fixed radon problems in their homes. Most homes can be fixed for about the same cost as other common home repairs.

MYTH #4: Radon affects only certain kinds of homes.

FACT: Radon can be a problem in homes of all types: old homes, new homes, drafty homes, insulated homes, homes with basements, and homes without basements. Local geology, construction materials, and how the home was built are among the factors that can affect radon levels in homes.

MYTH #5: Radon is only a problem in certain parts of the country.

FACT: High radon levels have been found in every state. Radon problems do vary from area to area, but the only way to know your radon level is to test.

MYTH #6: A neighbor's test result is a good indication of whether your home has a problem.

FACT: It's not. Radon levels can vary greatly from home to home. The only way to know if your home has a radon problem is to test it.

MYTH #7: Everyone should test their water for radon.

FACT: While radon gets into some homes through water, it is important to first test the air in the home for radon. If your water comes from a public water supply that uses ground water, call your water supplier. If high radon levels are found and the home has a private well, call the Safe Drinking Water Hotline at 1 800-426-4791 for information on testing your water.

MYTH #8: It's difficult to sell homes where radon problems have been discovered.

FACT: Where radon problems have been fixed, home sales have not been blocked or frustrated. The added protection is some times a good selling point.

MYTH #9: I've lived in my home for so long, it doesn't make sense to take action now.

FACT: You will reduce your risk of lung cancer when you reduce radon levels, even if you've lived with an elevated radon level for a long time.

For radon information by telephone call (800) 325-1245 (Information Line) or to speak to an IEMA Radon Program staff member call (217) 782-1325. Illinois Emergency Management Agency
Radon Program www.radon.Illinois.gov
1035 Outer Park Drive, Springfield, Illinois 62704

Saw this video and really felt it had some great points! Because our average age of buyers has lowered from 33 to 30, their demands are increasing. Watch the video for some ideas that point to:

1. Open up your spaces for better flow

2. More energy efficiency

3. Better lighting

4. Taking care of maintenance details before putting your home on the market.

5. Maximizing your return by cosmetics. You might want to watch HGTV or tour some houses that are on the market.

Selling to the younger buyer will require you to "move out of neutrals, and into color" attitude that many of my age group are less comfortable with.

 Gen Y is coming into the Market

 In 2006, the dynamics of the Baby Book entering their 60's and the average age of 1st time buyers being 33 collided head on. 2006 showed us that there weren't as many first time buyers as we previously had.

The results is that we have an oversupply of inventory and a lack of demand simply because they were not born. Our inventory is about 2 years full, and compounding the problems we have a financial distress situation which has caused prices to go down to meet younger buyers affordability..

First time buyers have always driven our market. That first step, creates other sales. They cause an average of 3-4 mini trade ups. Today since we have reduced prices, we are also looking at an average value of 30 instead of 33. We are just starting to tap into the Gen Y's who were born in the 1980's.

47% of the 2009 buyers were first time buyers. These precious first time buyers are not getting on the trade up ladder because of the job market. Also we find that those buyers want it now and because of the pressures of jobs, they just don't have the time for fix ups. They are expecting the house perfections.

Until the absorption rates of first time buyers rise to the required rate to absorb the inventory, we will have increases of sales, but we still will experiance an oversupply of inventory, some falling prices and with employment a question mark, foreclosures and short sales.

Hope that explains the market and our Choice Buyers of Tomorrow, Generation Y.

STATEMENT BY DEPUTY ASSISTANT SECRETARY VICKI BOTT

"Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective

Tuesday, August 10, 2010

October 4, 2010.

STATEMENT BY DEPUTY ASSISTANT SECRETARY VICKI BOTT

"Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective

Tuesday, August 10, 2010

October 4, 2010.

In a Nut Shell! FHA COSTS WILL GET HIGHER!

Cost for FHA could get a lot higher in the future, but are do to increase as of Sept. 7th. So those people who lock their loan before Sept 7th, will save a whole bunch of money $$$$$$.

Let me explain: The FHA authorities are having the pressure of having too much business. The underwriting standards are looser than conventional loans, so people are opting for FHA products.

In order to generate more profit to FHA, and maybe a bit less business for their overloaded system, the FHA people are increasing MI, or commonly known as Mortgage Insurance. MI is going up 1% and monthly costs will be up from .85% - .90%.

200,000 @ 5% for a 30 yr Fixed Rate Mortgage

Now, the Feds have given permission to increase the MI rate to a higher level. At the highest level, which has not been asked yet (unlike the for sure rate increase as of 9/7), the increase could become $152 a month.

So, please be forwarned! Sitting on the fence, may not be a wise decision. If you have found the home, lock in your rate before Sept. 7th, and save yourself the increase in MMI.

The costs of purchasing have and will go up. Even though the loan amount has decreased your monthly mortgage insurance will go up!

The Federal Government loosened the existing standards so most people could afford to borrow money for a house. There were Realtors in the industry who said that this was wrong, since things can change in people's lives. Most Realtors believe that the market upswing years ago was investor driven.

Now, the underwriting standards are just too tough for a decent buyer pool. We need a balance, but I understand the vicious cycle that the banks are seeing. The rates are unbelievably low, but the standards are unbelievably high.

This reaction for higher standard is because of the high foreclosure rate in the housing market across the country, however, loose underwriting scores is not the total reason for the decline. A little known fact is that after reviewing the credit scores of recent foreclosures is that the credit scores of the victims was 780. These were people who paid their debts on time.

So what is the perpetuating problem?

We have a high unemployment rate as well as under employed rate. Jobs that were are no longer because of the general economy woes. People are not buying, they are tightening their spending. Add to that fact, that the people who purchased homes had 3-20% down, and when we were appreciating at unbelievable rates, these same people took out the encouraged home equity borrowing.  With the recent turn of events, the Chicagoland real estate values have declined 25%. So put 2 + 2 + 2  together, you have people who lost jobs, or found jobs that are affording them less money and their home values have gone down.  Their home equity wasn't being supported by the housing prices.

It was in the News today, that the Federal Chairman Bernanke believes that the lenders are now being too tight for sales to occur and our economy is depending on them to loosen it. This is a hard position for the Lenders: their guidelines have failed before and now the Government is asking them to take a risk. One of the guidelines is that the buyer has to have his occupation for 2 years. Well, given the state of the general economy, that might be tough to find that buyer who is willing to risk his savings, in a market of declining values.

Our supplies (numbers of houses on the market) of normal sellers (not foreclosure or short sale) is coming down, so our prices are being driven by the foreclosure -short sale market. House values are down, so the normal sellers are waiting out the market for more balance.

The dreams of buyers are for a well valued home, that has had maintenance and care and those houses are a short supply. Buyers are wanting not to wait 6 months or longer for a Lender to decide if the short sale will be approved, and Realtors and the buyers are wondering if the value today on a contract will hold 6 months from now. The foreclosure market lenders are "dumping" the houses.

Realtors are understanding the catch 22. We hope that the guidelines for the Lenders will ease so more buyers will come to the market and we will have some balance. We are hoping for more signs of recovery, less inventory, so our normal seller will join the market and help stabilize prices.

Illinois Home Sales Up 10 Months in a Row, Chicago Region a Full Year
Statewide Home Prices Stabilizing

SPRINGFIELD, Ill. — 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.”

I personally think our recent slow down is the weather, time of year as well as the local economics. Prices are stabilizing, house sales are being made, but the competitive part of the market is being hampered with the lack of qualified buyers and being in the market place to act. The Fear Factor of the past is definitely in our market. Hoping the good news of sales moving ahead, mortgages are low will entice the buyers to leap off the fence and into a home.

Your can view listings in my IDX at http://www.chicagolandarealistings.com or better yet give me a call!

Although every purchase of a home involves a degree of compromise, the process begins with your personal preferences. The buyer has to let the agent have a clear idea of which criteria or ingrediant is imprtant and which ingrediant is flexible. For example: Do you really need 4 bedrooms, or will 3 and a den work or 3 with a place in the basement that could be walled off for a computer work just as well? Is a full basement necessary or could you work with a partial? Does the basement need to be fully finished or would unfinished work? How much are you willing to correct with redecorating on your own?

I ask plenty of questions, and as I show you homes and see your reactions, I might as more. The reason is that I preview lots of homes as they come on the market. I don't want to waste your time showing you homes that you will not like. Consider me your Personal Shopper!

Most Common Sources of Lead Poisoning:

• Deteriorating lead-based paint
• Lead contaminated dust
• Lead contaminated residential soil

 Lead may cause a range of health effects, from behavioral problems and learning disabilities, to seizures and death. Children 6 years old and under are most at risk, because their bodies are growing quickly. There is a informational web site, called lead-free kids, that describes the problems.

On the other hand, there are millions of homes with lead paint out there, and many have been painted and repainted several times so the lead paint is well covered up. 

Older homes, schools and day care facilities

• If your home was built before 1978, there is a good chance it has lead-based paint.
• Paint chips and dust from deteriorating paint can contain dangerous levels of lead.
• Dust containing lead can be created by friction activities, such as when windows, doors, or drawers are opened and closed, or by walking on stair treads.
• Lead dust can also be tracked into the home from soil outside.
• Lead can be found:
  • In the city, country, or suburbs.
  • In apartments, single-family homes, and both private and public housing.
  • On the inside and outside of buildings and in the soil outside.

If in doubt, have the paint tested and evaluated either at a local laboratory, or with one of the home test kits available at your local hardware store.

My only experiance with lead base paint usage that had not been repainted was on a house on Ridge Street,south of Central, in Arlington Heights. After having the house tested, they found that the gutter downspouts were the culpret. This family had had the experiance of lead poisoning in the family, so it was a health conern for them.

Cl

One of the newest subdivision's in Schaumburg is Lions Gate. Built by Cambridge and DL Horton in 2005, there was an individuality starting at the boulevard feeling at the entrance. With care and diligence, the builder had these upscale townhomes afford all the luxury of today's style. No longer dividing the different living space, Cambridge sought the open floor plan of a Great Room in this Bordeaux model. Airy, dramatic and designed to offer you total ease in planning your furniture.

This open floor plan with 9" soaring ceilings and large windows allows a combination living and dining room overlooking the breakfast or casual dining space leading to private balcony. Huge Corian counters top these rich berry colored Cherrywood cabinets highlighted with silver hardware. Stainless steel built in microwave, stove and refrigerator features a compny sized breakfast room, leading to the private balcony.

Master suite offers a Memory Lane before entering this 16 x 14 room. Huger ceramic floored luxury bath with separate clear glass shower & bath with linen closet and the same Cherrwood cabinets. Pantry storage, next to the laundry room with even more cabinents & shelves for the organized life you will cravel Master bath offers the separate shower, bath and double sink cherrywood vanity.

The send bedroom is 1/2 walled with white glossy bead board for the guests and bublic. Currently used for the a toddler, this room could easily be a home office, or a "hang" room.

This townhome is located on the east side of Schaumburg enjoying the "Shoppers Heaven" streets of Woodfied & Mall. Elegant dining, small boutique shops and national chain stores all will be present. Enjoy the movies and dine with elegance or enjoy a 1950's burger. You'll love the work commuting with 53/355 expressway connection to 90 tollway for heading to the OHare airport or to the City.

Realistically priced, yet a distinctive design for the discriminating person of taste who enjoys entertaining and a bright secure future in this upscale community!

106 Alton Rd, Prospect Heights, IL

Well, come on over, folks, to the little bit of country in the Northwest Suburbs of Chicagoland~namely, Prospect Heights. This bustling newer community offers sprawling sites for homes ranging from 1200 square feet to the McMansions on 1/2 acre or better sites. A new train station is within 1/2 mile from this country road named Alton.

This picturesque street, off Camp McDonald Rd, hides behind Rob Roy country Club and Woodland Park. Both enjoyable parks for your every pleasure to view and enjoy. Beyond the tree bern is the 8th tee at Rob Roy Golf Course and to the south are the beautiful peaceful grounds of Woodland Park. The current owner is the River Trails Park District and this home reflects their owners pride. Great beginnings? Or for the Woodworking Retiree, this home offers 2 bedrooms, 2 baths on the main level and over 1600 square feet of lifestyle. From the expansive hardwood floored living room to the separate dining room, you will enjoy the views from the newer thermal pane windows. Galley kitchen overlooks the vaulted ceiling rustic family room facing the 200+ feet of lovely yard. Feel like company? Third bedroom and bath are off the recreation room in the basement. My favorite room is the family room with its rustic beamed ceiling, woodburning stove and lush green views! With all the windows, you feel like your outdoors enjoying the weather, but not the bugs!

Maintained with pride, the roof is only 5 years old with wonderful gutter guards. This green sided home with attached two car garage offers plenty of storage and space. In the back yard you'll see the shed for outdoor equipment as well as an electric wood working room with heater for all your hobby needs. This expansive yard has a lovely dog run on the side also.

Feeling lazy and content? Sit back and enjoy the quiet restful view on your deck and the serenity on this "Old Country Road".  

Things were looking a bit more positive in the Chicagoland Housing Report by the Associated Press for March of 2010.

Inventories are up a bit, but supply of inventory is unchanged. Number of transactions this month was 6368 units, which is up by 43.46%. Please note that the Median price is up for the past month but still down slightly from last year. I think the messge is that the market is getting stronger, as is the economy.

Here's the good advice for all buyers no matter the time frame:

1. Find a local lender you can talk to in Person. Why? They understand the market you are facing and what loan program will be the most benefit to you.

2. Be specific about where you want to live. I've been selling real estate for 20+ years so I know the Northwest suburban market real well, but I don't know the south side of Chicago. I can refer you to the better agents there.

3. Work with the agent that knows the area. Specializing in the Northwest Chicagoland area, I'm keenly aware of the advantages and disadvantages of neighborhood locations that can impact your driving time, access to expressways, and your lifestyle.

4. Don't shy away from homes that needs some work. There are actually programs to help you make it your dream home.(203K for example helps you find the contractor and money to pay them.) As my Dad used to say, Carpet and paint is nothing...and there's no shortages of places to buy them.

 5. Be prepared to act. Don't discount the first or second house you see. I know what's fair in the market, and what's a great deal. I have the tools to help you find the inventory in your bunny slippers, Log on to ChicagolandAreaListings.com

Sound advise, no matter if you get the credit or not,  to help you find the House to become your Home!