Rachel Vinciguerra
Association Executive
Belvidere Board of REALTORS
215 N. State St.
Belvidere, IL  61008
815-544-2719  fax 815-531-1076
bbor1@frontier.com

Here are the Stats for January '12 for Belvidere

 

Belvidere

For once, the headlines are getting it right: "Supply-side correction continues," "Home buyer demand strengthening," "Market heads toward balance." There is a very real sense that the landscape is shifting. We don't want to overstate the case this month, as this coming spring will be the bellwether. It's been plus or minus five long years since the peak of the housing bubble and the ensuing aftermath. As we delve into a new year, let's see if the first month of the sixth year brought any encouraging signs.

 

New Listings in the Belvidere region decreased 38.3 percent to 37. Listings Under Contract were up 117.6 percent to 37. Inventory levels shrank 12.2 percent to 273 units.

 

Prices softened somewhat. The Median Sales Price decreased 37.5 percent to $75,000. Market Times were up 14.3 percent to 228 days. Absorption rates improved as Months Supply of Inventory was down 33.1 percent to 10.2 months.

 

No one likes feeling stuck. The fate of housing and the economy remain tied together in a single garment of destiny. As long as housing remains weak, many Americans are unable to relocate when an employment opportunity arises. Instead, they're anchored to a house that's underwater. Several key efforts aimed at easing refinancing, converting vacant properties to rentals and getting some private equity in the game are all reasons to stay alert and informed.

 

 

 

 

Here are market statitstics from MRED complied by 10K Research and Marketing.

There's the numbers, then there's the story behind them. For months, declining inventory has been the national tale to tell. This suggests a changing narrative with different voices. A buyer might tell you that record low mortgage rates and affordable prices made homeownership more attractive than renting. A seller may say that less competition allowed them to receive more of their asking price. The moral of the story? Real estate is local both in terms of geography and personal circumstance.

 

New Listings in the Belvidere region increased 5.6 percent to 57. Listings Under Contract were up 146.7 percent to 37. Inventory levels shrank 15.1 percent to 320 units, a trend that could indicate a changing landscape.

 

Prices gave back some ground. The Median Sales Price decreased 29.8 percent to $93,500. Market Times decreased 17.3 percent to 176 days. Absorption rates improved as Months Supply of Inventory was down 31.8 percent to 12.6 months.

 

Recent reports from the broader economy have dispelled the story of a double-dip recession. An early reading of gross domestic product (GDP) showed 2.5 percent growth. Meanwhile, national job growth, a major driver of housing demand and price support, has recently strengthened. An increasingly impatient White House has rolled out phase two of the Home Affordable Refinance Program (HARP) for Fannie- and Freddie-backed mortgages. This should help a number of consumers as they write the next chapter.

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Heather Lawson http://www.homesinrockfordil.com heatherlawsonrealestate@gmail.com 815 627 0477 (Office) Keller Williams Realty Signature 227 Logan Ave. Belvidere, IL 61008	November 2011 Market Update While home sales in September were down slightly from a relatively strong month in August, they were up from a year ago, giving encouraging signs of a strengthening market and potential for stabilizing, if not appreciating, home prices. These signs include an increasing demand, shown by the number of people shopping for homes, and the decreasing inventory of homes for sale, in conjunction with some of the lowest levels of new housing construction since the 1960s when the Beatles first came to the United States. Of the 3.48 million homes sold in September, 32% were first-time home buyers. With more and more people entering the market, the persisting obstacle for most is still the restrictive lending environment. In a plea to banks and policy makers, NAR President Ron Phipps said, "We need to remove the roadblocks to a housing recovery—not place more obstacles in the way of financially qualified buyers." With an increasing demand and shrinking inventory, it is hoped that banks will begin to see the market potential and start to lend to otherwise creditworthy home shoppers, opening the road to a more rapid recovery. While consumer confidence still remains at all-time lows, retail spending increased 1.1% last month, a positive sign of growth fueled by the approaching holiday season, which could propel the U.S. into a promising new year.
This Month's Video	Interest Rates
	Mortgage rates were down again, from 4.35% in September of last year to 4.11% this September. While the Federal Reserve continues to put downward pressure on interest rates to spur sales, Congress's recent action to lower loan limits has further tightened lending among banks. This had the biggest impact in the Western states, which experienced an 8.8% drop in sales. This was mainly due to the concentration of more expensive properties in California, where buyers rushed to purchase properties in August before loans limits dropped on the October 1 deadline.
Home Sales
4.91 million homes were sold in September, down 3.3% from a strong August in which 5.06 million homes were sold, but still 11.3% above September 2010. Lawrence Yun, NAR chief economist, states, "affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes, but the share of contract failures is double the level of September 2010. Even so, the volume of successful buyers is higher than a year ago and is remaining fairly stable—this speaks to an unfulfilled demand." If lending standards loosen, we can expect to see an increase in home sales.
Home Price
Home prices were down, with a 3.5% drop in September compared to a year ago. The national median price for homes in September was $165,400, with distressed properties, foreclosures, and short sales still accounting for 30% of sales. This is a great opportunity for those potential buyers still thinking about purchasing a home, especially as the housing industry begins to show increasing signs of stability.
Inventory
With stronger sales than a year ago, the amount of homes for sale was reduced to 3.48 million units, or an 8.5-month supply at the current sales volume. With the lowest new housing construction in almost fifty years, the inventory of homes on the market is projected to continue to decline, which is a positive sign that prices could begin to climb again.
Green Your Home
Did you know that the housing and building industry accounts for nearly 40% of the world's energy and raw material consumption? Our ability to "green our homes" truly has the ability to change the world. The principles of green are really about understanding priorities for a well-lived life—living healthy, being smart with money, and acting more sustainably. We typically spend more than 80% of our nonworking or commuting hours inside our homes. Because we spend so much of our lives inside, it only makes sense we make a healthy inside zone the first priority. Here are a few DIY tips from Green Your Home to get you started: 1. Cross-Ventilate. An average adult takes in more than 14,000 breaths—or about 3,000 gallons of air—a day! Surprisingly, you are more likely to breathe polluted air inside your home than outside—even in cities like Los Angeles, which aren't known for air quality. Opening one window won't cut it… you need cross-ventilation so the breeze actually blows though your home, taking the pollutions back out with it. Open a front door and a back door, or one window upstairs and one downstairs. 2. Lighten Up. Simply swapping out the five most commonly used incandescent bulbs for CFLs or LEDs in your home can save you $60 to $100 a year. Combined with well-designed artificial lighting, natural lighting is also a great way to boost efficiency. 3. Low Flow. American families use about 400 gallons of water a day, and 70% of that is used inside the home. The majority is used in the bathroom: the average person flushes the toilet 2,500 times a year. Transform your home's toilet from water-waster to water-miser for cheap. Place a brick or 2-liter plastic bottle filled with water into your toilet's tank. The volume of these objects means less water will be needed to fill your tank—you've just created your own low-flow toilet. Also, be sure and have a leaky or running toilet fixed by a plumbing professional immediately. For more tips, buy your copy of Green Your Home now at www.kellerink.com/greenyourhome
Each Office is Independently Owned and Operated.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report. The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

This email was sent by Heather Lawson of Keller Williams Realty Signature 227 Logan Ave. Belvidere, IL , 61008

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