Hi all.  Thanks for hanging out with me and my first attempt at a real estate blog.  I’ve spend the past couple months combining my blog and my real estate website to create one entity to provide you with the best real estate informaiton for Chicago and the Western Suburbs.  Let me know if you have any questions and I’ll see you on the new site:

http://www.mikelongrealty.com

When I put out my market statistics for communities around Chicago I pull a large number of stats to share with you.  One of my favorites is Months Supply of Inventory or MSI.  This is a simple way to help us talk about whether or not we are in a “buyers” or “sellers” market.  A quick look at how we figure it:

Let’s say Naperville, IL has 200 properties for sale in a certain month and 25 of them go under contract in that month.  We do some simple math:  200/25 and we get 8.  That months supply of inventory for that particular month would be 8.  At the current rate of properties going under contract it would take 8 months to get rid of the current inventory.   So, now what?  What does 8 mean to you and me?  I’ll tell you.

When we are looking at the numbers once we have figured them out we have to know a few simple things.  A “healthy” MSI is 4-6 months.  Anything higher than 6 months and it is an indicator that we are in a “Buyers Market.”  Anything under 4 months and we are looking at a “Sellers Market.”  When we start seeing MSI’s that go above 10 or 20 months and we can attache the work VERY STRONG to “Buyers Market.”

Let me know if you have any questions?  I’d love to help and feel free to browse the site…you’ll find tons of monthly statistics on several Chicagoland communities.  Just stopping to search for homes?  Check out my MLS Property Search and you’ll find a state of the art search that uses Google Maps.  Enjoy!!

Let’s take a quick glance at what was going on with the Clarendon Hills real estate market for the month of February 2009.  As always you can contact me with additional questions.

• The average home price over the past 13 months is $598,000.
• The months supply of inventory for Clarendon Hills for February was 95 months.  As you’ll see later on that this is based off of 1 property going under contract.  The average over the past year was 29 months.
• Average days on market for under contract properties?  136 days for that one property.  That actually matches right up with the years average of just over 136 days.
• Percent of properties under contract was 0.9%.  Again, with only 1 under contract let’s not look much into this.

Only 4 properties have sold in the past 3 months in Clarendon Hills.  Quick reminder that Months Supply of Inventory is figured out by taking the total inventory and how many properties have gone under contract and dividing.  Very simple…let’s us know how long it would take, at the current pace, to sell everything currently for sale.  Healthy market is between 4-6 months.  Anything higher than 6 months puts us in a “buyers market.”  Right now we are in a VERY STRONG BUYERS MARKET.  I look at the average price over the past 13 months instead of month to month because it gives us a better idea of where we are trending.  Let’s look at a few more numbers:

• Total # of properties For Sale at the end of February in Clarendon Hills was 105.  Down 19% from last year.
• Total # of properties under contract was 1.  Down 86% from last February when we had 7.
• Total # of properties Sold was 3 which matched last year.
• Total # of properties that Expired off market were 11.  Up 10% from last year.
• Total # of New listings added in February to the market was 23.  Down 18% from last years 28.

Quick note on the numbers above.  Take a look at the # of Sold and Under Contract and then look at the # of New.  Notice something?  The homes coming on the market are outnumbering the homes coming off the market.  Thus, we get more added to next months inventory.  Inventory stays high which effects days on market, median price and everything else.

Questions?  Feel free to let me know if you need anything more specific.  I’m hear to help and I love looking up the statistics.  I feel it helps us get a good sense of what is going on in the market.  If you ask a real estate agent how’s the market they’re going to tell you based off of their experience.  If that agent is busy that week they’ll be optimistic.  Opposite can happen.  That is why I like the nubmers….they’re tough to argue.  Enjoy!!

Let’s take a look at how the Westmont real estate market did last month for single family homes.

Total number of properties on the market as of February 28th was 130.  That is down just 1% from a year ago this time.  Looking at the total number of properties in Westmont under contract is 5…down 29% from last year when we had 7.  Total number sold in February?  Just 1.  Down 88% from last years 8.  This is unreal…the total number of expired for Westmont single families in February was 24.  That is up 118% from last year.  We saw the same number of new listings as last year at 26.  With 1 sold and 5 under contract (6 total) and 26 new it looks like we’re adding to existing inventory.  Big question is how many of those expired are part of the new?

% of properties under contract is 3.8%. Down from last year.

The median price over the past 13 months has been $304,000.

The months supply of inventory (one of my favorite statistics) for Westmont was 20.2 months in February.  Up 25% from last year when we were closer to 16 months.  This number has been increasing quickly making this a VERY STRONG BUYERS MARKET. We want to get this number closer to 4-6 months and then we can start talking normal/healthy market.

Average days on market for those properties under contract was 152 days. That is up from the 13 month average of 105 days and rising quickly.  So we are down where we want to be up and up where we want to be down.

Just keep in mind a few things:  the statistics I’m talking about are for Detached Single Family homes.  When I’m comparing to figured a year ago I’m comparing February to February.  Anytime I talk about average Days on Market I’m looking at the average for those properties that have gone under contract.  So, when numbers are up or down they are up or down from last February.

If you like what you’re reading I’d encourage you to subscribe to this blog.  If you want to hang out and take a look around we have a wonderful Property (MLS) search that incorporates Google Maps.  If you have any questions never hesitate to contact me.  Enjoy!!

Let’s take a look at how single family homes in Downers Grove did as of the end of February 2009.

Total number of single family homes for sale at the end of February was 434 which is down 9% from last February.  Total number of properties that accepted a contract in the month was 16.  That is down 16% from last year’s 26.  Total number of sold?  15.  A drop of 12%.  Up 29% from last year are the number of expired homes at 44 for the month.  Good thing is the total number of new listings last month was down 16% from last year.  Bad thing is at 81 that number is still higher than the sum of under contract and sold.  Thus, we continue to add to an already high inventory.

% of properties that are under contract is at 3.7%. A very low number.

The median price over the past 13 months was $371,000 in Downers Grove.

We’re looking at a Months Supply of Inventory of 23.4 months in February.  That number is up 5% from last year and the average over the past 13 months was 18.1.  So we’re trending upwards making this a VERY STRONG BUYERS MARKET. A healthy/normal Months Supply of Inventory will be between 4-6 months.

The average days on market for Downers Grove was 165 days in February. This just looks at those properties that have gone under contract.  This is up 53% from last year.

Just keep in mind a few things:  the statistics I’m talking about are for Detached Single Family homes.  When I’m comparing to figured a year ago I’m comparing February to February.  Anytime I talk about average Days on Market I’m looking at the average for those properties that have gone under contract.  So, when numbers are up or down they are up or down from last February.

If you have any questions never hesitate to ask.  I would encourage you to subscribe to the blog if you like what you’re reading.  Looking for a good MLS/Property search online?  Look no further because we have a good one.  Check it out.  Enjoy!!

Let’s take a closer look at Lisle, IL real estate market statistics as of February 2009.

Total number of single family properties for sale as of February 2009 was 124.  That is up 6% from last February which saw 117 on market.  Number under contract is 5 (same as last year.)  Total number sold was 7 (same as last year.)  Total number of properties that expired in February was 13, up 18% over last years 11.  Finally, the total number of new listings added to the market in February alone was 30.  That figure is up 50% from last year.

% of properties under contract in Lisle as of the end of the month:  4%.

The average median price over the past 13 months in Lisle is $345,000.

The months supply of inventory (MSI) for Lisle was 21.2 up 5% from last February.  The average over the past year is around 20.7.  This is extremely high an puts us in a VERY STRONG BUYERS MARKET. Keep in mind a healthy/normal MSI is 4-6 months.  We go above that and we start talking buyer’s market…..well, we are way above that.  We get into the 3 month and below range and we talk seller’s market.

Average days on market for under contract properties in Lisle has averaged out to 81.9 days over the past 13 months.  Average days on market in February this year was 179 up 141% from last February. This is trending upward very quickly.

Just keep in mind a few things:  the statistics I’m talking about are for Detached Single Family homes.  When I’m comparing to figured a year ago I’m comparing February to February.  Anytime I talk about average Days on Market I’m looking at the average for those properties that have gone under contract.  So, when numbers are up or down they are up or down from last February.

If you would like me to personalize a report for you just let me know.  I can look at just condos, just new construction, just resale and a bunch more.  This way you can see where you are at compared to these general statistics.  If you like what you’re reading I’d invite you to subscribe and also spread the word.  I’ll keep putting these up for you if you keep coming back.  Enjoy!!

This weekend, the weekend of March 6-8, is when we are to set are clocks one hour forward.  We do this at 2am on Sunday morning, March 8, 2009.  Or, you can do as I do and just set them all ahead as I go to bed on Saturday night.  I don’t see 2am quite as much as I used to.

I can’t tell you how many times over the past 11 years of practicing real estate that adjusting the clock forward or backward has had an impact on my Sunday morning business.  The good news is I normally wind up an hour early rather than the latter in the fall.

I’ve also had clients forget and that 11am appointment on Sunday morning sneaks up on them as I ring the doorbell before the showing.  It all works out in the end.  For more information on daylight savings (translation: if you’re a dork like me and want to know the history of daylight savings) you can find it here.

Enjoy your weekends and as always let me know if there is anything I can help with.

Let’s take a look at how things have been going in the Naperville, IL real estate market as of end of February, 2009.

The total number of single family homes for sale in Naperville is 1,063 and that number is down 4% from last year (1,110.)  When looking at number of properties under contract in February we saw 73 go under and that number is down 9% from a year ago.  Number of Sold?  That is down 46% at 38 units compared to 71 last February.  Naperville expired properties are up 10% at 102 from 93 last year.  Last but not least the number of new listings on the market for Naperville is at 234 down 7% from last year.

The average median price for all of  Naperville single family homes over the past 13 months (Feb. ‘08-Feb. ‘09) was $410,000.

The Months Supply of Inventory for Naperville in February this year was 12.2 months.  That is just below the average of 12.3 months over the past year but up from last February when we saw a 11.7 months supply of inventory (MSI.)  Keep in mind that a normal/healthy MSI is 4-6 months.  Anything above is considered a buyers market and anything below is a seller’s market.  We are currently in a strong buyers market for Naperville.

Two more statistics I personally enjoy and give a good sense of where the market is at is Days on Market (market time) and percent of properties under contract (% under contract.)  The average days on market for under contract properties over the past year was 83.1.  However, February saw its average days on market at 114.  So we’re trending upwards fast.

The % under contract for Naperville is 6.9%. A low number and a simple way to sum up what the market is like.  Lots of inventory with more new coming on the market then sold and under contract combined with high days on market will bring down prices.  We need to see more under contract and sold vs. new and once that happens we’ll start to see these other numbers go in directions we all want to see.

Just keep in mind a few things:  the statistics I’m talking about are for Detached Single Family homes.  When I’m comparing to figures a year ago I’m comparing February to February.  If I say things are up or down it is based off of that individual month.  I’ll let you know if I’m averaging the entire year (13 months.)  Anytime I talk about average Days on Market I’m looking at the average for those properties that have gone under contract.

As always let me know if there are any questions.  Please subscribe to this blog if you like what you read and spread the word.  If you’re actively looking I’d encourage you to take adavantage of our MLS property search.  Enjoy!!

So, thanks to previous posts, we’re all familiar with the first time home buyers credit that is available.  Well, I now have the form you can use in order to claim it with your taxes.  Or the form that you can give to your accountant in case they don’t have it.

One of the great things about his credit is you can purchase in 2009 but use it in your 2008 tax return.  If you have already filed your 2008 taxes then you can send in an amended return to take get the money this year.  UPDATE ON FIRST TIME BUYER CREDIT HERE….LEARN HOW SOME CAN USE IT AT THE CLOSING TABLE.

A few things to keep in mind:  1.  The $8,000 credit that you do not have to pay back is only good for homes purchased by first time buyers between January 1, 2009-December 1, 2009.  If you purchased between April 1, 2008 & December 31, 2008 you will be eligible for the $7,500 interest free loan from last year.  2.  Income for a single person can’t exceed $75,000 and $150,000 for a married couple filling jointly.  There is a phaseout so click here to see what those are.  3.  First time buyer is anyone who has not owned a home within 3 years of the new purchase.  This is also only for your principal residence and NOT investment property.

Let me know if you have any questions as I’m more than willing to help out.  Feel free to take advantage of my MLS Search which is listed above and I’d also invite you to subscribe to the blog to get updates.  Enjoy!

Click here to download Tax Form 5405 - First Time Home Buyer Tax Credit Form!

Seems every time I get excited about something there is another something that comes around the corner and ruins my fun.  Within the past few weeks we have been on somewhat of a roller coaster trying to make sense and see what passes to help home buyers within the Stimulus bill.  Well, we did pretty good.  As mentioned in previous posts we got a solid $8,000 tax credit for first time home buyers and they kept FHA lending limits higher so more people could take advantage.

So imagine my surprise when I started to hear more and more about the new lending guidelines coming out from Fannie Mae and Freddie Mac.  It’s kind of all over the place so I will do my best to make sense of it all.  I’ve heard about this through my lenders as well as several articles.  You can read an article on it from the Chicago Tribune by clicking here.  Take note that these changes are going to be effective as of April 1, 2009.

From what I understand in order to get the best interest rate now, more than ever, it is going to be a much bigger down payment AND higher credit scores.  From what I gather we’re talking about at least a 740 credit score and a 20% down payment.  If you are below 740 the magic number on down payment to avoid fees is 30% down.  The 20% down was always the threshold for getting that best rate so that has not changed unless your credit is under 740.  The 740 is up from around 720 a few months ago and roughly 670 a few years ago.  So, if you are below 740 and have anything less than 30% down you are now going to be hit with an up front fee (all percentage based.)

Let me try to lay this out.  If you have a 715 credit score and you are putting 22% down you will get hit with one of these fees from Fannie & Freddie.  If you have more than 30% then they’ll be more flexible on your credit score.  That’s crazy.  Since when did a credit score of over 700 become not good enough to get prime interest rates.  Complete over reaction.  In order to avoid fees you need a combination of more than 30% down and a credit score of 740 and above.

For my condo buyers out there things actually are a little simpler but not in a good way.  Just know that if you are buying a condo you are more than likely going to get hit with a slightly higher interest rate and will find it almost impossible to avoid these up front fees.  Magic number on down payment for a condo seems to be around 25%.  However, regardless of credit and down payment there is going to be a fee.  The better your credit and the more you put down will just reduce the fee but not avoid it.

I know this is kind of all over the place but so are these guidelines and the people who are implementing them.  The reason I bring this to your attention is so you are aware and you can discuss and get your questions ready for your lender.  Now more than ever you need to ask questions about fees.  If you’d like you can call me as it will be easier to discuss knowing some specifics.  there are 1,000’s of scenarios we can go over and none may apply to you.  Good luck out there!!  If you ever need to talk or have things explained my door is always open and my email always on.