By Kenneth R. Harney
December 4, 2009
Chicago Tribune
If you're thinking about applying for the new $6,500 homebuyer federal tax credit or the extended $8,000 version, here's some news: The IRS has just issued its first formal guidelines for you.
Tops on the agency's list of advice: Cool it for a couple of weeks. Even if you qualify for one of the credits, don't send in any requests to the IRS quite yet. Wait until later this month when the agency publishes its revised Form 5405 with all the key instructions needed to get you a check from the government.
The forthcoming version of the form will incorporate the major changes to the tax credit program made by Congress in legislation signed by President Obama on Nov. 6. These include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents, among others.
In a tax bulletin issued just before Thanksgiving, the IRS emphasized that all home purchasers after Nov. 6 "must use this new version (of Form 5405) to claim the credit." Put another way: If you send in the old version, which happens to be the one you can currently download from the agency's Web site, www.irs.gov, your request for the credit is likely to go nowhere.
The legislation, known as the Worker, Homeownership and Business Assistance Act of 2009, extended the $8,000 first-time home purchaser credit until April 30, 2010, for signed contracts, and June 30, 2010, for closings. The law also created a new tax credit for people who've owned a principal residence for a consecutive five of the previous eight years, and who purchase a replacement principal residence with a signed contract no later than next April 30, followed by a closing no later than June 30.
Qualified repeat buyers can obtain credits up to $6,500. For both the first-time and repeat buyer program, the credit is equal to 10 percent of the purchase price of the house, up to a maximum of either $6,500 or $8,000.
The new IRS bulletin also outlined the agency's guidance on other important features of the amended credit program:
--Members of the armed forces, plus diplomatic and intelligence personnel who are in service in foreign countries, will get an extra year to buy a principal residence and still qualify for a credit. They will have until April 30, 2011, to enter into a binding contract to purchase a house, and until June 30, 2011, to close on it.
--Anyone who buys a house after Nov. 6 -- even those who had intended to get in the door before the previous Nov. 30 expiration date for the $8,000 credit -- will now need to comply with several new rules. First, the house cannot cost more than $800,000. Second, no one under the age of 18 can claim the credit, no matter what the circumstances. And finally, anyone who is counted as a dependent on another taxpayer's federal filings is ineligible for a home purchase tax credit.
--The expanded income limits for purchasers after Nov. 6 range to $125,000 in "modified adjusted gross income" for single taxpayers, and to $225,000 for those who file jointly. Singles with incomes between $125,000 and $145,000 may be eligible for phased-down credit amounts, as are joint filers with incomes from $225,000 to $245,000. Anyone with an income above these amounts cannot qualify for either of the credits. Under the pre-Nov. 6 rules, by comparison, taxpayers applying for the $8,000 credit were limited to incomes of $75,000 (single filer) to $150,000 (joint filer).
The IRS continues to offer detailed consumer information resources on the credits, including questions and answers on a variety of home purchase scenarios.
For example, some taxpayers seeking the extended $8,000 credit are uncertain about co-purchase and co-signing situations, especially involving parents and adult children. When a homeowning parent co-signs for a mortgage with a son or daughter, and both names appear on the note, can the son or daughter qualify for the first-time purchaser credit?
The IRS says the parent clearly does not qualify for any portion of the credit since he or she already owns a principal residence. But if the son or daughter has not owned a house during the three years preceding the current purchase, and qualifies on income, he or she can be allocated the entire $8,000 credit.
Similarly, when unmarried individuals co-purchase a house, and only one of them is eligible for the credit, the full $8,000 can be allocated to the eligible buyer. The ineligible co-purchaser, in other words, does not spoil the deal -- as long as none of the credit goes to that person.
Washington Post Writers Group
Chicago-area home sales soar in October
Chicago-area home sales soar in October
By: Staff Nov. 23, 2009
(Crain's) — Chicago-area home sales jumped by a third in October compared to a year ago, according to the Illinois Assn. of Realtors, with the group citing lower home prices, low mortgage rates and the federal tax credit for first-time buyers as reasons for the spike.
Last month’s surge compared to October 2008 was the fourth straight monthly year-over-year improvement for the metro area and by far the biggest.
Sales in the city of Chicago also rose 28.5% last month, the second straight year-over-year rise, the association said in a release Monday.
Sales rose 24.2% statewide compared with October 2008.
“October's extraordinary sales totals reflect home purchases by many buyers who were sitting on the sidelines of the housing market waiting out the economic downturn as well as more home sellers coming to terms with accurate pricing given the market conditions,” Mike Onorato, president of the association, said in the release.
In the nine-county Chicago region, 7,286 single-family homes and condominiums were sold October, up 33.3% from 5,467 sales in October 2008, the Realtors group said. The monthly year-over-year percentage gain was much bigger than the previous three straight increases of 0.3% in July, 1.3% in August and 5.9% in September.
In the city, sales rose 28.5%, with 2,012 in October, up from 1,566 in October 2008. That easily topped last month’s 5.8% year-over-year monthly increase, which was the first since May 2006.
Median prices fell again year-over-year in the Chicago area and the city, as sales of distressed property pushed down the figure. The region’s median price — where half the homes sold for more and half sold for less — was $190,000 in October, down 15.6% from October 2008, the Realtors association said.
In the city, the median price was $215,000 in October, down 18% from last year.
"The first-time homebuyer tax credit has created a great incentive for buyers on the fence who are ready to invest in real estate,” Genie Birch, president of the Chicago Assn. of Realtors, said in the release.
But the Chicago association used the release to complain about tight residential lending policies, which need to be changed to help “creditworthy homebuyers.”
Good-credit buyers are finding it “very difficult” to get financing, and Chicago Realtors would welcome banks showing more willingness to lend to good prospects, says a spokeswoman for the Chicago association. Also, various guidelines make it harder to get loans for condos in the city than for unattached single-family homes, according to the spokeswoman.
President Obama signed a bill this month extending the tax credit for first-time homebuyers and expanding it to include a smaller credit for some buyers who already own their homes. Currently, first-time buyers whose incomes qualify now can receive a credit of up to $8,000 on home purchases that close by June 30.
Last month, the average interest rate was 5.0% for a 30-year fixed-rate mortgage, according to the release.
The Illinois Assn. of Realtors' sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
By: Staff Nov. 23, 2009
(Crain's) — Chicago-area home sales jumped by a third in October compared to a year ago, according to the Illinois Assn. of Realtors, with the group citing lower home prices, low mortgage rates and the federal tax credit for first-time buyers as reasons for the spike.
Last month’s surge compared to October 2008 was the fourth straight monthly year-over-year improvement for the metro area and by far the biggest.
Sales in the city of Chicago also rose 28.5% last month, the second straight year-over-year rise, the association said in a release Monday.
Sales rose 24.2% statewide compared with October 2008.
“October's extraordinary sales totals reflect home purchases by many buyers who were sitting on the sidelines of the housing market waiting out the economic downturn as well as more home sellers coming to terms with accurate pricing given the market conditions,” Mike Onorato, president of the association, said in the release.
In the nine-county Chicago region, 7,286 single-family homes and condominiums were sold October, up 33.3% from 5,467 sales in October 2008, the Realtors group said. The monthly year-over-year percentage gain was much bigger than the previous three straight increases of 0.3% in July, 1.3% in August and 5.9% in September.
In the city, sales rose 28.5%, with 2,012 in October, up from 1,566 in October 2008. That easily topped last month’s 5.8% year-over-year monthly increase, which was the first since May 2006.
Median prices fell again year-over-year in the Chicago area and the city, as sales of distressed property pushed down the figure. The region’s median price — where half the homes sold for more and half sold for less — was $190,000 in October, down 15.6% from October 2008, the Realtors association said.
In the city, the median price was $215,000 in October, down 18% from last year.
"The first-time homebuyer tax credit has created a great incentive for buyers on the fence who are ready to invest in real estate,” Genie Birch, president of the Chicago Assn. of Realtors, said in the release.
But the Chicago association used the release to complain about tight residential lending policies, which need to be changed to help “creditworthy homebuyers.”
Good-credit buyers are finding it “very difficult” to get financing, and Chicago Realtors would welcome banks showing more willingness to lend to good prospects, says a spokeswoman for the Chicago association. Also, various guidelines make it harder to get loans for condos in the city than for unattached single-family homes, according to the spokeswoman.
President Obama signed a bill this month extending the tax credit for first-time homebuyers and expanding it to include a smaller credit for some buyers who already own their homes. Currently, first-time buyers whose incomes qualify now can receive a credit of up to $8,000 on home purchases that close by June 30.
Last month, the average interest rate was 5.0% for a 30-year fixed-rate mortgage, according to the release.
The Illinois Assn. of Realtors' sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Insulation Goes Natural - Courtesy of "Mr. Home Inspector" Joe Schmalz
Mr. Home Inspector
Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
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Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
How would you like to have Free Dish Network Satellite TV?
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Mr. Home Inspector
Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
How would you like to have Free Dish Network Satellite TV?
Go to www.get-dish-tv-4-free.com now and sign up!
Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
How would you like to have Free Dish Network Satellite TV?
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Homebuyer Tax Credit Extended
Today, the U.S. House of Representatives voted by an overwhelming 403-12 margin to approve the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit. The bill already passed in the U.S. Senate yesterday, so now it will advance from Congress to the White House for President Obama’s signature. The Administration already has signaled its support of the Homebuyer Tax Credit amendment as well as the President’s intention to sign the bill into law.
This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in NRT’s numerous legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.
Senator Johnny Isakson (R-Ga.), the chief architect of the Homebuyer Tax Credit legislation, made a short speech on the floor of the U.S. Senate shortly before his colleagues voted 98-0 to pass the bill on November 4th. In his remarks, Sen. Isakson made a point of thanking a handful of key individuals who were critical to the success of this bipartisan effort: Senate Majority Leader Harry Reid (D-Nev.), Senate Finance Committee Chairman Max Baucus (D-Mont.), Sen. Christopher Dodd (D-Conn.), his own lead staffer, Chris Cook, and Realogy’s CEO:
“Lastly, but not least, I want to thank Mr. Richard Smith, a private citizen, a person in the housing industry who has dedicated countless hours in the last month to help educate people on the positive effects of what we are about to do and will take place,” said Isakson.
On behalf of the entire NRT organization, I would like to personally add our thanks to Richard and Realogy for his exceptional leadership, determination and dedication to making the extension and expansion of the Homebuyer Tax Credit a reality. I think you will all agree that Sen. Isakson’s remarks are a clear validation of what we at NRT already know — that there is not another real estate company or franchisor in the world that can lay claim to such influential and effective leadership on the issues affecting our industry, and your businesses, as can Realogy.
Again, we are now one step away from this bill becoming law. Once that occurs, we will immediately update the respective brand web sites with detailed information for your sales associates and all homebuyers and sellers.
In closing, I’d like to reiterate that our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified home buyers in the first half of 2010 undoubtedly will benefit our business and the U.S. economy.
Best regards,
Bruce Zipf
President & CEO
NRT LLC
This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in NRT’s numerous legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.
Senator Johnny Isakson (R-Ga.), the chief architect of the Homebuyer Tax Credit legislation, made a short speech on the floor of the U.S. Senate shortly before his colleagues voted 98-0 to pass the bill on November 4th. In his remarks, Sen. Isakson made a point of thanking a handful of key individuals who were critical to the success of this bipartisan effort: Senate Majority Leader Harry Reid (D-Nev.), Senate Finance Committee Chairman Max Baucus (D-Mont.), Sen. Christopher Dodd (D-Conn.), his own lead staffer, Chris Cook, and Realogy’s CEO:
“Lastly, but not least, I want to thank Mr. Richard Smith, a private citizen, a person in the housing industry who has dedicated countless hours in the last month to help educate people on the positive effects of what we are about to do and will take place,” said Isakson.
On behalf of the entire NRT organization, I would like to personally add our thanks to Richard and Realogy for his exceptional leadership, determination and dedication to making the extension and expansion of the Homebuyer Tax Credit a reality. I think you will all agree that Sen. Isakson’s remarks are a clear validation of what we at NRT already know — that there is not another real estate company or franchisor in the world that can lay claim to such influential and effective leadership on the issues affecting our industry, and your businesses, as can Realogy.
Again, we are now one step away from this bill becoming law. Once that occurs, we will immediately update the respective brand web sites with detailed information for your sales associates and all homebuyers and sellers.
In closing, I’d like to reiterate that our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified home buyers in the first half of 2010 undoubtedly will benefit our business and the U.S. economy.
Best regards,
Bruce Zipf
President & CEO
NRT LLC
Message From Coldwell Banker's President/COO
Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum
WASHINGTON (October 23, 2009) – Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors ® .
Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate 1 of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.
Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun , NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax
credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and
help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully
remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors ® Profile of Home Buyers and Seller s , shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey
shows that distressed homes accounted for 29 percent of transactions in September.
NAR President Charles McMillan , a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970,
but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said.
“Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply 2 at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.
“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.
The national median existing-home price 3 for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which
is 8.1 percent below a year ago.
Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price 4 was $175,100 in September, down 11.7 percent from
September 2008.
Regionally, existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.
Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.
In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.
Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.
The National Association of Realtors ® , “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, and is posted with other tables at: www.realtor.org/research/research/ehsdata . For information on areas not included in the report, please contact the local
association of Realtors ® .
1 The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in
resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it
is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically
are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons
for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.
3 The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort
median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4 Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for October will be released November 23. The next Pending Home Sales Index is scheduled for November 2. NAR’s quarterly report on metro area home prices and state home sales is on November 10; release times are 10 a.m. EST.
Information about NAR is available at www.realtor.org . This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
Fran Broude
President/COO
WASHINGTON (October 23, 2009) – Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors ® .
Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate 1 of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.
Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun , NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax
credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and
help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully
remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors ® Profile of Home Buyers and Seller s , shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey
shows that distressed homes accounted for 29 percent of transactions in September.
NAR President Charles McMillan , a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970,
but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said.
“Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply 2 at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.
“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.
The national median existing-home price 3 for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which
is 8.1 percent below a year ago.
Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price 4 was $175,100 in September, down 11.7 percent from
September 2008.
Regionally, existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.
Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.
In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.
Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.
The National Association of Realtors ® , “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, and is posted with other tables at: www.realtor.org/research/research/ehsdata . For information on areas not included in the report, please contact the local
association of Realtors ® .
1 The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in
resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it
is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically
are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons
for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.
3 The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort
median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4 Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for October will be released November 23. The next Pending Home Sales Index is scheduled for November 2. NAR’s quarterly report on metro area home prices and state home sales is on November 10; release times are 10 a.m. EST.
Information about NAR is available at www.realtor.org . This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
Fran Broude
President/COO
Rent The Top Floor for the NFL Season…
Entertain Friends or Clients like never before… Luxury Box atmosphere…
Room comes equipped with two HD Televisions (one 52” and one 40”) and an HD quality Projector (large viewing area)…
Room will also be equipped with NFL’s Game Ticket and SuperFan packages…
Game Ticket Includes
Watch any game you want, up to 14 games each week
Track your favorite players performance throughout the day
See scores, stats and rankings at the touch of a button
Get “Big Play” alerts for game-changing plays
SuperFan Include
Experience every game in HD
Watch Live Games on Computer of Mobile Phone
See up to 8 games on a Single Screen
Catch all the Red Zone Action
See entire games in 30 minutes
Get Scores and Highlights on Mobile Phones
Looking for 10 people to commit to $1,000 each (Season roughly 20 weeks long, will include playoff and Super Bowl)…
I am also looking for 10 people to commit $100 each for Monday night Football…
Offering a full operational kitchen for game food preparation and catering layout (both tailored to your specifications)…
Room will be tended to by room manager, so that you can sit back, relax, and be served…
Room will also come equipped with non alcoholic beverages, chips and dips…
You will be allowed you to bring your own alcoholic beverages…
Additional pictures are available at http://dlboege.com/gallery/view_album.php?set_albumName=The-Top-Floor-New
May God be With and Bless You,
David L. Boege
Certified Public Accountant
232 South Batavia Avenue (aka US Route 31)
Batavia, Illinois 60510
Office Telephone: (630) 326-9955
Mobile Telephone: (312) 543-1991
Electronic Facsimile: (630) 225-5078
Email Address: david@davidlboegecpa.com
Web Site Address: www.davidlboegecpa.com
Room comes equipped with two HD Televisions (one 52” and one 40”) and an HD quality Projector (large viewing area)…
Room will also be equipped with NFL’s Game Ticket and SuperFan packages…
Game Ticket Includes
Watch any game you want, up to 14 games each week
Track your favorite players performance throughout the day
See scores, stats and rankings at the touch of a button
Get “Big Play” alerts for game-changing plays
SuperFan Include
Experience every game in HD
Watch Live Games on Computer of Mobile Phone
See up to 8 games on a Single Screen
Catch all the Red Zone Action
See entire games in 30 minutes
Get Scores and Highlights on Mobile Phones
Looking for 10 people to commit to $1,000 each (Season roughly 20 weeks long, will include playoff and Super Bowl)…
I am also looking for 10 people to commit $100 each for Monday night Football…
Offering a full operational kitchen for game food preparation and catering layout (both tailored to your specifications)…
Room will be tended to by room manager, so that you can sit back, relax, and be served…
Room will also come equipped with non alcoholic beverages, chips and dips…
You will be allowed you to bring your own alcoholic beverages…
Additional pictures are available at http://dlboege.com/gallery/view_album.php?set_albumName=The-Top-Floor-New
May God be With and Bless You,
David L. Boege
Certified Public Accountant
232 South Batavia Avenue (aka US Route 31)
Batavia, Illinois 60510
Office Telephone: (630) 326-9955
Mobile Telephone: (312) 543-1991
Electronic Facsimile: (630) 225-5078
Email Address: david@davidlboegecpa.com
Web Site Address: www.davidlboegecpa.com
Mortgage Industry Insight
Fannie Mae’s Guideline Changes May Affect Corporate Transferees’ Purchasing Power; Ris Media
If you serve the corporate relocation market you may be aware of yet another challenge this population faces. Because of changes announced in June by Fannie Mae (FNMA), the largest mortgage purchaser in the country, transferring families’ purchasing power could be significantly impacted. FNMA’s June 8th Announcement cites it will now disallow inclusion of secondary wage earner’s projected income in loan qualifying income ratios. Fannie Mae has in the past allowed “trailing secondary wage earner income” when determining housing affordability prior to a spouse or partner securing a position in the new location, but has now eliminated this policy.
Is the Pipeline Clogged for Refinancing Homeowners?; Ris Media
Borrowers are waiting an unusually long time to close on mortgage refinance loans because thinly staffed banks can’t handle surges in volume when rates dip, mortgage experts say. Also, lenders are giving applications closer scrutiny and requiring more documentation of income and assets to avoid repeating past mistakes. This has further crimped the pipeline, as have new appraisal rules that add a layer of red tape for many loans.
The Next Fannie Mae; Wall Street Journal
Critics of the expanded role of the FHA in residential finance are worried that Ginnie Mae, which guarantees FHA loans and packages them into securities, is too exposed to mortgages they label as subprime given that the FHA offers loans with 3.5 percent down payments to borrowers with below-average to poor credit ratings. Ginnie Mae issued $43 billion in mortgage-backed securities in June alone, and experts say its mortgage exposure will surpass $1 trillion by the end of 2010. Critics point out that FHA loans have a default rate of 7 percent, according to a June report from HUD's inspector general, and that struggling homeowners with 25 percent negative equity still qualify for refinancing under the Home Affordable Modification Program even though they are statistically likely to re-default.
As sent via email from Coldwell Banker Home Loans, PHH Home Loans
If you serve the corporate relocation market you may be aware of yet another challenge this population faces. Because of changes announced in June by Fannie Mae (FNMA), the largest mortgage purchaser in the country, transferring families’ purchasing power could be significantly impacted. FNMA’s June 8th Announcement cites it will now disallow inclusion of secondary wage earner’s projected income in loan qualifying income ratios. Fannie Mae has in the past allowed “trailing secondary wage earner income” when determining housing affordability prior to a spouse or partner securing a position in the new location, but has now eliminated this policy.
Is the Pipeline Clogged for Refinancing Homeowners?; Ris Media
Borrowers are waiting an unusually long time to close on mortgage refinance loans because thinly staffed banks can’t handle surges in volume when rates dip, mortgage experts say. Also, lenders are giving applications closer scrutiny and requiring more documentation of income and assets to avoid repeating past mistakes. This has further crimped the pipeline, as have new appraisal rules that add a layer of red tape for many loans.
The Next Fannie Mae; Wall Street Journal
Critics of the expanded role of the FHA in residential finance are worried that Ginnie Mae, which guarantees FHA loans and packages them into securities, is too exposed to mortgages they label as subprime given that the FHA offers loans with 3.5 percent down payments to borrowers with below-average to poor credit ratings. Ginnie Mae issued $43 billion in mortgage-backed securities in June alone, and experts say its mortgage exposure will surpass $1 trillion by the end of 2010. Critics point out that FHA loans have a default rate of 7 percent, according to a June report from HUD's inspector general, and that struggling homeowners with 25 percent negative equity still qualify for refinancing under the Home Affordable Modification Program even though they are statistically likely to re-default.
As sent via email from Coldwell Banker Home Loans, PHH Home Loans
Local Severe Weather Alert for Geneva, IL (60134)
Local Severe Weather Alert for Geneva, IL (60134)
...HEAT ADVISORY IN EFFECT FROM NOON CDT /1 PM EDT/ TO 7 PM CDT /8 PM EDT/ SUNDAY... THE NATIONAL WEATHER SERVICE IN CHICAGO HAS ISSUED A HEAT ADVISORY...WHICH IS IN EFFECT FROM NOON CDT /1 PM EDT/ TO 7 PM CDT /8 PM EDT/ SUNDAY. TEMPERATURES WILL CLIMB INTO THE MIDDLE 90S SUNDAY AFTERNOON. THE HEAT COMBINED WITH HIGH HUMIDITY WILL CREATE HEAT INDEX VALUES AROUND 105 DEGREES. IN ADDITION...NIGHTTIME TEMPERATURES WILL ONLY DIP INTO THE 70S WITH VERY MUGGY CONDITIONS BOTH TONIGHT AND SUNDAY NIGHT. CLOUDS AND AN INCREASING CHANCE FOR THUNDERSTORMS WILL ALLOW THE HEAT TO EASE A BIT ON MONDAY. A COLD FRONT IS EXPECTED TO MOVE THROUGH THE AREA BY MONDAY NIGHT ALLOWING COOLER AND LESS HUMID CONDITIONS BY TUESDAY. PRECAUTIONARY/PREPAREDNESS ACTIONS... A HEAT ADVISORY MEANS THAT A PERIOD OF HOT TEMPERATURES IS EXPECTED. THE COMBINATION OF HOT TEMPERATURES AND HIGH HUMIDITY WILL COMBINE TO CREATE A SITUATION IN WHICH HEAT ILLNESSES ARE POSSIBLE. DRINK PLENTY OF FLUIDS...STAY IN AN AIR-CONDITIONED ROOM...STAY OUT OF THE SUN...AND CHECK UP ON RELATIVES AND NEIGHBORS.
...HEAT ADVISORY IN EFFECT FROM NOON CDT /1 PM EDT/ TO 7 PM CDT /8 PM EDT/ SUNDAY... THE NATIONAL WEATHER SERVICE IN CHICAGO HAS ISSUED A HEAT ADVISORY...WHICH IS IN EFFECT FROM NOON CDT /1 PM EDT/ TO 7 PM CDT /8 PM EDT/ SUNDAY. TEMPERATURES WILL CLIMB INTO THE MIDDLE 90S SUNDAY AFTERNOON. THE HEAT COMBINED WITH HIGH HUMIDITY WILL CREATE HEAT INDEX VALUES AROUND 105 DEGREES. IN ADDITION...NIGHTTIME TEMPERATURES WILL ONLY DIP INTO THE 70S WITH VERY MUGGY CONDITIONS BOTH TONIGHT AND SUNDAY NIGHT. CLOUDS AND AN INCREASING CHANCE FOR THUNDERSTORMS WILL ALLOW THE HEAT TO EASE A BIT ON MONDAY. A COLD FRONT IS EXPECTED TO MOVE THROUGH THE AREA BY MONDAY NIGHT ALLOWING COOLER AND LESS HUMID CONDITIONS BY TUESDAY. PRECAUTIONARY/PREPAREDNESS ACTIONS... A HEAT ADVISORY MEANS THAT A PERIOD OF HOT TEMPERATURES IS EXPECTED. THE COMBINATION OF HOT TEMPERATURES AND HIGH HUMIDITY WILL COMBINE TO CREATE A SITUATION IN WHICH HEAT ILLNESSES ARE POSSIBLE. DRINK PLENTY OF FLUIDS...STAY IN AN AIR-CONDITIONED ROOM...STAY OUT OF THE SUN...AND CHECK UP ON RELATIVES AND NEIGHBORS.
Uptrend Continues in Pending Home Sales
WASHINGTON (August 4, 2009) – Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®. The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003. Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.” The Pending Home Sales Index in the Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago. In the Midwest the index increased 0.8 percent to 89.9 and is 11.6 percent above June 2008. The index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago. In the West the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008. NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said. NAR’s Housing Affordability Index2 remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7 percent of gross income to mortgage principal and interest, well below the standard allowance of 25 percent. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. “A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.” A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600. Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.” The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #1The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales. 2The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers. The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income. Monthly publication of the index began in 1981 with annual data calculated back to 1970. Existing-home sales for July will be released August 21; the next Pending Home Sales Index will be on September 1. Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.
Kenneth R. Trepeta Esq.Director - Real Estate Services
National Association of REALTORS
500 New Jersey Avenue, N.W.Washington, D.C. 20001
# # #1The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales. 2The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers. The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income. Monthly publication of the index began in 1981 with annual data calculated back to 1970. Existing-home sales for July will be released August 21; the next Pending Home Sales Index will be on September 1. Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.
Kenneth R. Trepeta Esq.Director - Real Estate Services
National Association of REALTORS
500 New Jersey Avenue, N.W.Washington, D.C. 20001
Geneva and the area surrounding have miles of bike & walking paths, lots of natural areas, plenty of parks...and much more. Each neighborhood has it's own unique offering with it's own wonderful features. The following link just happens to be one of the tranquil scenes I get to pass by each day. http://www.youtube.com/watch?v=tBslAhh2L04
It's a wonderful suburban life!
Just updated! Our IPhone app is even better now. http://appshopper.com/business/the-cadwallader-group.
View our Twitter, Facebook, & YouTube pages...all from the same application. Send us feedback instantly on a property. Amazing and easy to use.
View our Twitter, Facebook, & YouTube pages...all from the same application. Send us feedback instantly on a property. Amazing and easy to use.
Blogging from my phone?!
Information at your fingertips. As the work continues to keep us busy in the field, we are hard pressed for enough time to sit in front of the computer to blog these days. So here is a late night thought from the mobile office...when someone asks when will the market "turn around" or "Come Back" ???
...I have to qualify that question with a dignified response....
"What do you mean by that?"
In other words, what is your definition of "Turn Around" or "Come Back"? Is the cessation of downward trending prices? Is it the end of saturation of inventory? Is it merely the perception that the "doom & gloom" is behind us and people truly believe it's OK to make a commitment to move forward with a Real Estate decision?
So I ask you....what is your definition of a "Turn Around" or "Come Back"?
Just a thought--if we wait until the market is at the bottom to buy, the market will be headed back up. Prices are at an all time low now and interest rates are very favorable. Savvy buyers are out and about choosing their next home right now. They're looking for homes that are in move in condition, with neutral decor and priced right.
First Impressions Do Count!
Thank you Dick Greenwood, Coldwell Banker Builder Marketing Broker for this one!
"Michigan State University conducted a study that estimated that good landscaping adds 6% to 11% to the eventual sales price of a home."
With spring here, now is the perfect time to put in fresh mulch, replace dead or dying trees and bushes and add fresh blooms to your yard to enhance the curb appeal. This proves it's worth it.
"Michigan State University conducted a study that estimated that good landscaping adds 6% to 11% to the eventual sales price of a home."
With spring here, now is the perfect time to put in fresh mulch, replace dead or dying trees and bushes and add fresh blooms to your yard to enhance the curb appeal. This proves it's worth it.
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