The first thing to think about is the logistics of the move. How are you going to move, who is going to help you, can I still get by with offering beer and pizza to my friends or will I have to actually pay someone to help me? Be sure to start changing your address over in time so your mail is not disrupted. Don't worry about your junk mail-they already know your new address...in fact they probably knew it before you did. Do a crime search online to make sure the ax murderer is not your new neighbor....if he's around the block-that's ok...just not right next door. You never know when you might need a cup of sugar. Start hitting up friends (and wal-mart) for boxes. You don't want to have to go to Aldi's and buy 20 candy bars only to get 20 boxes. Unless they are Butterfingers-those are pretty good. Going through the moving process again ourselves right now-these are just things on our mind. Actually, if you ever need boxes just ask your Realtor-if anyone knows someone that just moved and is looking to get rid of some boxes it's them. If your Realtor doesn't know anyone that just moved-get a new Realtor....that one is doing something wrong.
Sent from my Verizon Wireless BlackBerry
Saturday, December 19, 2009
Thursday, December 17, 2009
The central Illinois housing market 2009 round up and outlook for 2010.
It was the best of times...and it was the worst of times...continued. There are some very positive aspects of the current market and there are also some daunting prospects to consider as well. Let's start with the positive.
The Best Of Times...
Interest rates are about as low as we will probably ever see them in our lifetime, or at least for a very long time. There are two big tax credits available to home buyers that we haven't seen in previous years that also make the idea of buying a home very appealing. Home prices are down a little so there are some good buys.
The Urgency Factor...
A few things to consider. The tax credit will expire April 30th, 2010. By all accounts it looks like this will not be extended like it was in November, so this will probably be it. The inventory of new homes coming on the market is also down. Once the market starts to turn around, you'll see more homes coming on the market as well as more buyers but until then the options available continue to be less than the past. As of the end of November, the number of new homes coming on the market was down 12.4% compared to the same period a year earlier but down 22.1% compared to the same period two years earlier. Fewer options for home purchases. History has also shown us that after periods of low interest rates that when rates do start to go up-they go up very, very quickly. This may be a short window we have to take advantage of these rates. The seasonal factor must also be considered. Sales are traditionally slower in the colder months. Fewer sales usually means more motivated sellers. All of this ads up to a great time to be in the hunt for a new home.
The Worst of Times...
If this is our "worst of times" I think we are still well ahead of the pack. I have colleagues is other parts of the country where they are working with short sales and foreclosures that account for 50-75% of their business. We have nothing like that here, but there is still some reason to be concerned. In a report released Nov 19th by the Mortgage Bankers Association (MBA) they found that a record high 14 percent of borrowers were in trouble with their mortgages during the 3rd quarter of 2009. MBA's chief economist does not expect foreclosures to peak until 2011 with the increase primarily attributed to lob losses and more homeowners with negative equity in the home. The number of sold/closed homes in the area year to date through the end of November is down 14.4% compared to the same period in 2008 but down 23.9% for the same period in 2007. That may sound horrible, but we also have to remember that we had many continuous years of home sale increases with things peaking around 2005/2006.
Average Selling Prices Currently
I was on a listing appointment yesterday and one thing I looked at for the neighborhood was what the average sold price to listing price was, as well as the average price per square foot, not just for 2009, but each year going back to a point where I noticed a big change. It was almost exactly the same average selling price and price per square foot each year until about 2004 or 2005. This shows almost zero appreciation during these years...but no downward pressure on prices until 2009. In this year the average listing to sales price changed from a differential of $5000 to $10,000 off the list price. The average selling price for central Illinois as a whole were off 3.9% year to date in 2009 which is up from being off 2.5% compared to the prior year. This is both good and bad news. Bad news for sellers because prices are off, good news for buyers because....prices are off. Considering how far off prices are in other parts of the country, this is incredibly low. So did we miss the economic collapse that other parts of the country saw-or has it just not hit this area yet?
Listing Price compared to Selling Price....
On average homes are selling at about 91.3% of list price. This is off 1.4% from the same period last year and off 2.4% for the same period two years ago. Homes priced right for this market are selling closing to the listing price and faster than homes overpriced for this market which are taking longer to sell.
Local Foreclosures:Up/Down?
I constantly get calls from buyers looking for a deal on foreclosures. Good luck. The number of foreclosures in the area in very, very low, particularly the higher the price range you are looking. The condition of most foreclosures also leaves more to be desired than most buyers are looking for. Congress is taking steps to make the short sale process go faster which will lessen the number of homes going into foreclosure as well. My advice if you are looking for a foreclosure deal...do your homework, look at the legal notices in the Journal Star, become familiar with the property before hand-both the physical property itself as well as the legalities tied to it with back taxes and liens, and get your financing arranged now. And be prepared to wait. From the time a person stops making payments on a house it can be up to a year or more before it goes through the whole foreclosure process and is ready to be sold.
How Long Does it Take a House to Sell?
The average number of days it takes a home to sell is currently 86 days, which is up 13.1% over the same period last year and up 25.8% over the same period two years ago. While this is the average, certain areas and price ranges are moving faster than other areas. Also-this is for homes that have sold. It would be interesting to see the average number of days on the market for homes currently for sale that haven't sold yet. Unfortunately, that data is not available. The closest I could find is that there are 770 homes for sale in the city of Peoria currently. I can only track up to 400 homes to establish that the average number of days on the market for these homes is 121 days.
Housing-is it still a good investment?
Yes, Yes, Yes. Going back to January 1, 2000 through October 1, 2009, the Dow has been down 8.8%, the S&P down 22.6%, the Nasdaq down 45.3% but real estate has been up 44.2%. Source:MSN Money.com
My personal outlook over the next 3-6-9 months....
On the buying side....it actually couldn't get better...and could get worse beyond April. Tax credits will no longer apply, who knows what will happen with interest rates but they will probably go up and most certainly will not go down further, if the number of new homes coming on the market continues to decline there may be fewer options. The weather will start to turn in April (hopefully) and there will be more buyers in the market place, thus increased competition for fewer homes. I continue to hear that in January we may here more news coming out of a local employer that doesn't sound very good. There are more rumors than truth out there, but if what I'm hearing it correct then the higher price range homes could be affected. I just got off the phone with a Paragon (the relocation company representative for Caterpillar) representative and we were discussing the market in the $400K to $500K range. There are currently 28 homes for sale, 1 pending (for you Realtors reading this-I know it says two but it's really one) and nothing closed over the last 30 days. In fact going back 3 months, there have only been 3 sales within this demographic for this particular school district where the search was done, of which we were involved in 2 of them.
On the selling side....now more than EVER it's important to be priced right, positioned right and shown right. You can't price your house for the current market, but you must price it ahead of the market. If it looks like things will be a little more bumpy over the next few months, you need to price your house to sell before it get to that point. If you look at your house and see things that you just want to let the next buyer take care of...good luck...they will just go to the next 5 homes on the street. In marketing your home, go with the agent that can prove their performance in this market place and can prove their experience with a proven track record. Go with a solid marketing plan that includes all available media. Houses are exactly like the stock market...their values go up and they go down and they are an investment. You wouldn't pay more for a stock than what the market is saying it's worth, and the same goes for houses. If you are priced right, present your house right and market it right, your house will sell-no question about it.
The Best Of Times...
Interest rates are about as low as we will probably ever see them in our lifetime, or at least for a very long time. There are two big tax credits available to home buyers that we haven't seen in previous years that also make the idea of buying a home very appealing. Home prices are down a little so there are some good buys.
The Urgency Factor...
A few things to consider. The tax credit will expire April 30th, 2010. By all accounts it looks like this will not be extended like it was in November, so this will probably be it. The inventory of new homes coming on the market is also down. Once the market starts to turn around, you'll see more homes coming on the market as well as more buyers but until then the options available continue to be less than the past. As of the end of November, the number of new homes coming on the market was down 12.4% compared to the same period a year earlier but down 22.1% compared to the same period two years earlier. Fewer options for home purchases. History has also shown us that after periods of low interest rates that when rates do start to go up-they go up very, very quickly. This may be a short window we have to take advantage of these rates. The seasonal factor must also be considered. Sales are traditionally slower in the colder months. Fewer sales usually means more motivated sellers. All of this ads up to a great time to be in the hunt for a new home.
The Worst of Times...
If this is our "worst of times" I think we are still well ahead of the pack. I have colleagues is other parts of the country where they are working with short sales and foreclosures that account for 50-75% of their business. We have nothing like that here, but there is still some reason to be concerned. In a report released Nov 19th by the Mortgage Bankers Association (MBA) they found that a record high 14 percent of borrowers were in trouble with their mortgages during the 3rd quarter of 2009. MBA's chief economist does not expect foreclosures to peak until 2011 with the increase primarily attributed to lob losses and more homeowners with negative equity in the home. The number of sold/closed homes in the area year to date through the end of November is down 14.4% compared to the same period in 2008 but down 23.9% for the same period in 2007. That may sound horrible, but we also have to remember that we had many continuous years of home sale increases with things peaking around 2005/2006.
Average Selling Prices Currently
I was on a listing appointment yesterday and one thing I looked at for the neighborhood was what the average sold price to listing price was, as well as the average price per square foot, not just for 2009, but each year going back to a point where I noticed a big change. It was almost exactly the same average selling price and price per square foot each year until about 2004 or 2005. This shows almost zero appreciation during these years...but no downward pressure on prices until 2009. In this year the average listing to sales price changed from a differential of $5000 to $10,000 off the list price. The average selling price for central Illinois as a whole were off 3.9% year to date in 2009 which is up from being off 2.5% compared to the prior year. This is both good and bad news. Bad news for sellers because prices are off, good news for buyers because....prices are off. Considering how far off prices are in other parts of the country, this is incredibly low. So did we miss the economic collapse that other parts of the country saw-or has it just not hit this area yet?
Listing Price compared to Selling Price....
On average homes are selling at about 91.3% of list price. This is off 1.4% from the same period last year and off 2.4% for the same period two years ago. Homes priced right for this market are selling closing to the listing price and faster than homes overpriced for this market which are taking longer to sell.
Local Foreclosures:Up/Down?
I constantly get calls from buyers looking for a deal on foreclosures. Good luck. The number of foreclosures in the area in very, very low, particularly the higher the price range you are looking. The condition of most foreclosures also leaves more to be desired than most buyers are looking for. Congress is taking steps to make the short sale process go faster which will lessen the number of homes going into foreclosure as well. My advice if you are looking for a foreclosure deal...do your homework, look at the legal notices in the Journal Star, become familiar with the property before hand-both the physical property itself as well as the legalities tied to it with back taxes and liens, and get your financing arranged now. And be prepared to wait. From the time a person stops making payments on a house it can be up to a year or more before it goes through the whole foreclosure process and is ready to be sold.
How Long Does it Take a House to Sell?
The average number of days it takes a home to sell is currently 86 days, which is up 13.1% over the same period last year and up 25.8% over the same period two years ago. While this is the average, certain areas and price ranges are moving faster than other areas. Also-this is for homes that have sold. It would be interesting to see the average number of days on the market for homes currently for sale that haven't sold yet. Unfortunately, that data is not available. The closest I could find is that there are 770 homes for sale in the city of Peoria currently. I can only track up to 400 homes to establish that the average number of days on the market for these homes is 121 days.
Housing-is it still a good investment?
Yes, Yes, Yes. Going back to January 1, 2000 through October 1, 2009, the Dow has been down 8.8%, the S&P down 22.6%, the Nasdaq down 45.3% but real estate has been up 44.2%. Source:MSN Money.com
My personal outlook over the next 3-6-9 months....
On the buying side....it actually couldn't get better...and could get worse beyond April. Tax credits will no longer apply, who knows what will happen with interest rates but they will probably go up and most certainly will not go down further, if the number of new homes coming on the market continues to decline there may be fewer options. The weather will start to turn in April (hopefully) and there will be more buyers in the market place, thus increased competition for fewer homes. I continue to hear that in January we may here more news coming out of a local employer that doesn't sound very good. There are more rumors than truth out there, but if what I'm hearing it correct then the higher price range homes could be affected. I just got off the phone with a Paragon (the relocation company representative for Caterpillar) representative and we were discussing the market in the $400K to $500K range. There are currently 28 homes for sale, 1 pending (for you Realtors reading this-I know it says two but it's really one) and nothing closed over the last 30 days. In fact going back 3 months, there have only been 3 sales within this demographic for this particular school district where the search was done, of which we were involved in 2 of them.
On the selling side....now more than EVER it's important to be priced right, positioned right and shown right. You can't price your house for the current market, but you must price it ahead of the market. If it looks like things will be a little more bumpy over the next few months, you need to price your house to sell before it get to that point. If you look at your house and see things that you just want to let the next buyer take care of...good luck...they will just go to the next 5 homes on the street. In marketing your home, go with the agent that can prove their performance in this market place and can prove their experience with a proven track record. Go with a solid marketing plan that includes all available media. Houses are exactly like the stock market...their values go up and they go down and they are an investment. You wouldn't pay more for a stock than what the market is saying it's worth, and the same goes for houses. If you are priced right, present your house right and market it right, your house will sell-no question about it.
Tuesday, December 15, 2009
Curious about taxes in central Illinois?
With the city of Peoria's school district announcing today an increase in their tax rate for 2010, I've had quite a few emails regarding how properties are taxed in the area. If you go back to a post on my blog in January of 2009, or click on http://markmonge.blogspot.com/2009/01/taxes-around-peoria-and-central.html , you'll find a quick summary of what some different areas taxes bases are. In Feb of this year I also had another post on the topic.
Help us with our website!!!
While the look may be similar, many new features have been added to our website, www.markmonge.com. Many of these upgrades were because of suggestions from people like you. If you have seen a feature on someone elses website that you felt was beneficial, or if you have any ideas of things you would like to see, please drop us an email and give us a hint. We're always looking for new things to add and upgrade!
Home buying season extended....
There is going to be more news coming out of one of the local employers soon that will have a dampening effect on the local housing market. Dampening if you are selling, possibly a plus if you are buying. Interest rates are still at rock bottom rates, the supply of homes is still high and the colder weather means a traditionally slower selling season. What more could you ask for? How about tax credit incentives for first time buyers as well as buyers that have owned a home for at least 5 years. This credit will run through April 2010. There really has not ever been a better time to buy a home than the next 4-5 months. There are some great values out there and if I were a stock broker I would rate the next few months as a "Buy".
New 2009 Sales figures for November....
New stats should be out any day and you'll see them here first! Be sure to check back in soon. Once the Peoria Area Association of Realtors makes a press release in a few days we'll have all of the data uploaded the second it's available.
Biggest Real Estate Flops of 2009
Ok...just read any of these stories and you will have to believe that "It's better here!". :)http://finance.yahoo.com/real-estate/article/108383/the-biggest-real-estate-flops-of-2009?mod=realestate-sell
Wednesday, December 2, 2009
Monges...on the move again....
Well....looks like we're moving again. For anyone counting...this would be move #9 in about 15 years. We weren't planning on moving-our house wasn't for sale or on the market, then about 2 weeks ago another Realtor approached us and asked if we'd be interested in showing our house. We didn't think much would come of it....next thing you know we're hitting up our clients for moving boxes. We'll be staying in the same location and probably building something in 2010....should be an interesting year. Every Realtor should be required to move every few years so that they can relate to their clients better. :) And if you are thinking about moving, be sure to give us a call because we can offer a shoulder to cry on and some free boxes to help get you packed!
Tuesday, December 1, 2009
October Stats
For a very detailed look at the Central Illinois market as a whole, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/2009_Oct_Summary.pdf
For one page summary of all of the different markets, click here.
For the Bartonville area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Bartonville.pdf
For the Canton area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Canton.pdf
For the Chillicothe area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Chillicothe.pdf
For the Dunlap area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Dunlap.pdf
For the East Peoria area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/East_Peoria.pdf
For the Edwards area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Edwards.pdf
For the Germantown Hills area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Germantown_Hills.pdf
For the Mackinaw area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Mackinaw.pdf
For the Metamora area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Metamora.pdf
For the Morton area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Morton.pdf
For the Pekin area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Pekin.pdf
For the Peoria area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Peoria.pdf
For the Peoria County area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Peoria_County.pdf
For the Peoria Heights area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Peoria_Heights.pdf
For the Tazewell County area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Tazewell_County.pdf
For the Washington area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Washington.pdf
For the West Peoria area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/West_Peoria.pdf
For the Woodford County area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Woodford_County.pdf
For any other areas not mentioned here, just shoot us an email and we'd be happy to get it posted.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/2009_Oct_Summary.pdf
For one page summary of all of the different markets, click here.
For the Bartonville area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Bartonville.pdf
For the Canton area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Canton.pdf
For the Chillicothe area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Chillicothe.pdf
For the Dunlap area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Dunlap.pdf
For the East Peoria area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/East_Peoria.pdf
For the Edwards area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Edwards.pdf
For the Germantown Hills area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Germantown_Hills.pdf
For the Mackinaw area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Mackinaw.pdf
For the Metamora area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Metamora.pdf
For the Morton area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Morton.pdf
For the Pekin area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Pekin.pdf
For the Peoria area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Peoria.pdf
For the Peoria County area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Peoria_County.pdf
For the Peoria Heights area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Peoria_Heights.pdf
For the Tazewell County area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Tazewell_County.pdf
For the Washington area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Washington.pdf
For the West Peoria area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/West_Peoria.pdf
For the Woodford County area, click here.
http://www.paarealtors.com/members/news/statistics/MarketUpdates/200910/Woodford_County.pdf
For any other areas not mentioned here, just shoot us an email and we'd be happy to get it posted.
Thursday, November 19, 2009
Two new homes coming on the market in Dunlap!
Get the heads up on this wonderful 4 bedoom home in Northtrail Meadows that will be listed at $229,900! If you would like to see it before it officially hits the market, just give us a call and we would be happy to arrange it! It won't last long! Ceramic tile floors, cathedral ceiling in the fireplaced greatroom, finished basement, new carpet and paint!
Also-we know of another house that will be coming on the market in the Sommer Place Subdivision. It's not on the market yet but if you would like to get the jump on everyone else just give us a call and we'll get a showing arranged! This home is a fantastic 4 bedroom home that quite honestly sits on probably the best yard in Sommer Place not only right now-but probably the best yard that will ever be-in Sommer Place. You won't want to miss it! Call for more details!
Also-we know of another house that will be coming on the market in the Sommer Place Subdivision. It's not on the market yet but if you would like to get the jump on everyone else just give us a call and we'll get a showing arranged! This home is a fantastic 4 bedroom home that quite honestly sits on probably the best yard in Sommer Place not only right now-but probably the best yard that will ever be-in Sommer Place. You won't want to miss it! Call for more details!
Tuesday, November 10, 2009
Another picture from the field today.
Sent from my Verizon Wireless BlackBerry
Wanted-house or vacant lot in Dunlap-urgent!
Looking for a house or vacant lot in the Dunlap School District, preferrably the Ridgeview Elementary area. Can close as quick as a week or as late as Jan. 1st. For a house-price range between $225K and $500K, for a vacant lot-price varies on how nice of a lot. Can close immediately on a lot. If you or someone you know has a property that matches this description, please contact us immediately. If you are already working with an agent, just have your agent contact us and we'll get something set up right away!
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