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Thursday, December 29, 2011

Pending home sales UP in November!!!

Pending sales of existing U.S. homes surged to a 1-1/2 year high in November, an industry group said on Thursday, offering more signs of a tentative recovery in the housing market.
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Phillip Spears | Digital Vision | Getty Images
Fixing the economy should come before housing policy, according to a new survey by real estate website Trulia.com.


The National Association of Realtors' Pending Home Sales Index, based on contracts signed in November, increased 7.3 percent to 100.1 — the highest level since April 2010.
Economists polled by Reuters had expected pending sales to rise only 2 percent. Pending sales lead existing home sales by a month or two.
Recent data on home sales and construction have been fairly upbeat, suggesting an improvement in the sector, but prices continue to trend lower

Wednesday, December 21, 2011

A good comparison between Gold at is low and Real Estate!!!

 

Real Estate: Today’s Golden Opportunity

by The KCM Crew on December 20, 2011
Everyone wants to comment on the current real estate market. They want to talk about how now is not the time to buy a home. Some even argue owning a house has never been a great investment. Most say it will be a long time before real estate again begins to appreciate. It all sounds so familiar to us. It was just a decade ago that many made the same arguments about gold as an investment.
Gold had dropped from over $400 an ounce to $250 an ounce (a 40% decline) from February 1996 to August 1999. People ran from gold as though it was a plague.
Lord William Rees-Mogg, the current Chairman of The Zurich Club, in 1997 said:

“No investment has been so thoroughly exploded as gold; most people think that there will no more be another gold boom than there will be another boom in tulip futures in The Netherlands.”
Two years later in 1999, Don Wolanchuk author of the Wolanchuk Report explained:
“Everybody hates gold. You can’t have a bottom until everybody is out. And everybody is out of the gold sector.”
Everyone knows what happened next. The proclamation of gold’s death was rather premature. Gold rose from $250 an ounce to over $1,500 an ounce in the next twelve years. We see the same situation with real estate today. We are not predicting that real estate will see the same levels of appreciation. I do believe however that the market will rebound strongly.
Those who continued to believe in gold as an investment were rewarded. Those who continue to believe in real estate as a sound investment will also be rewarded.
Here is what Adam Hamilton wrote in October 2000 in an essay titled Is Gold Dead?
The road for gold investors has been long and parched in the last five years. They have wandered through a seemingly endless desert, occasionally tempted by what proves to be an illusory mirage. Many have fallen beside the sun-cracked path, their white bones picked clean by buzzards and gleaming in the sun. Nevertheless, a brave contrarian core continues to march forward. They have studied history, currency, gold, investments, economics, and finance. They understand the timeless value of gold, the cyclical nature of the markets, and the vagaries of human psychology. They realize it is darkest before the dawn, and the journey most difficult right before the homestretch is reached. Gold is in an INCREDIBLE position, and it will have its day. Nothing goes up in price forever, and nothing goes down in price forever. Investments are cyclical. Gold is NOT dead, it is simply biding its time, waiting for its next earth-shattering mega-rally. The spoils that go to the few remaining gold investors when that day inevitably arrives will be fantastic. The stunning victory will quickly blot out the painful memories of the long struggle…
You could replace the word ‘gold’ with the words ‘real estate’ throughout this essay and it would apply today.
We originally ran this blog back in March. We believe it still applies. By the way, Gold closed yesterday at almost $1,600 an ounce.

Monday, December 12, 2011

GEN Y

Many buyers are delaying a decision to purchase a home because of the volatility of the real estate market. There is no larger category exhibiting this behavior than those of Generation Y. To define this segment of the population, we go to Wikipedia:
Generation Y, also known as the Millennial Generation (or Millennials), Generation Next, Net Generation, or Echo Boomers, describes the demographic cohort following Generation X. There are no precise dates for when the Millennial generation starts and ends, and commentators have used birth dates ranging somewhere from the mid-1970s to the early 2000s.

Does this generation wish to own a home?

Yes. A recent survey completed by Trulia shows people between the ages of 18-34 still believe in the concept of home ownership. 65% of those surveyed said their American Dream includes owning a home”.

Where are these adults living?

Recent research form John Burns Real Estate Consulting shows the number of adults living with their parents has dramatically increased over the past eight years. Below is a graph showing the numbers:

Bottom Line

Generation Y believes in homeownership. Yet, they are delaying the decision to purchase a home of their own. When they do decide to buy, they will impact the housing market in a big way.

Wednesday, December 7, 2011

More decent news for Real Estate in Roscoe, Rockton, South Beloit and surrounding areas

The number of homes sold in November increased 19 percent from November 2010, but the three-month rolling average price fell to levels not seen since 2000, according to statistics released today by Rockford Area Realtors.

Members of the association were involved in 281 home sales in November, up from 232 last year.

It marked the sixth straight month that sales were higher year over year, but the area real estate market still will see fewer annual home sales for the fifth straight year.

While sales are growing, prices continue to slide. The three-month rolling average fell to $101,553. That’s the lowest since May 2000 when it was $100,853.

“Foreclosure and short-sale inventories are working through the market, with buyers in the market favoring lower-priced homes,” Steve Bois, Rockford Area Realtors CEO, said in a news release.

Bois said the number of homes on the market continues to fall though, which should help stabilize the prices.

Tuesday, December 6, 2011

Good news for Rockford, Roscoe, Rockton, South Beloit Real Estate

ROCKFORD (WIFR) -- There is improvement in local housing sales numbers--while not dramatic, any increase is good. For the Rockford area it could be at the start of a growing real estate market.
Investor Joe Sartino said, "They were asking $26,900 for the house. Just five years ago the house was worth over twice that amount. So it was a great buy, we didn't have to that much to it, and it turned out very nice."
As a real estate investor, Sartino flips foreclosed homes: some to sell, and some to rent.
RAR CEO Steve Bois said, "We see investors coming out now: that really says that the market is really ripe for buyers right now."
November sales increased 19% compared to November of last year.
Bois said, "We're seeing some recovery trends in the marketplace. Our inventory has gone down, which is a good thing, and it's at about the '07 level. So we're really seeing some positive trends going forward."
Bois says this is the sixth straight month the Winnebago County and Boone County real estate market has seen an increase in the number of homes sold.
Realtor Carol Rosenquist said, "I have a lot more people right now buying for themselves, you know, they're taking advantage of the great buys that are out there."
Even if people aren't looking to buy, they're at least looking to rent.
Sartino said, "A lot of people are now starting to look at houses to rent because they may not have a down payment for their house yet, so they're going to try to save a little money before they go and buy something."
Bois said, "Real estate's like the weather: it's local. So all in all, the trends are positive going forward, but it's a gradual situation."
It’s an improving sales situation which local realtors expected to continue throughout 2012.
While the Rockford Area housing market is looking up, Illinois is fifth in the nation in the number of foreclosures so far this year.


Info from WIFR.com