Let me start out by saying that if I knew what the future of real estate was going to bring this year, I'd be doing something other than sitting at my desk typing this post. Even the small community of Champaign County is influenced by the vast global economy and the variables are often too complicated to sift through and make a definitive prognostication.
But, there are a few things that remain the same year after year. First of all, real estate is a great investment. The current market offers some unique buying opportunities and in the long term, real property has always been a safe bet. There is still a backlog of houses on the market and there are some real bargains out there right now.
Interest rates are still low but don't be confused by the recent Fed moves to lower the discount rate. Mortgage rates are influenced by the Bond Market so a change in the discount rate does not necessarily translate into a change in the mortgage rates. The varied and confusing array of mortgage options has also dwindled. More traditional loans requiring a downpayment and good credit are becoming the norm. On the other hand, there are some great programs, especially through the FHA that allow funds for the improvement of properties to be financed or even forgiven for certain owner occupied homes.
If you find yourself in the position of having to sell your home because of an employment or life change, remember the basics. Correct pricing is the key. The appraisal that was done for your home equity loan two years ago is probably not valid anymore. You will need a current market analysis and a realistic attitude. You will also need to market and stage your home so that it stands out from all the other houses on the market. That may mean renting a storage unit and clearing out all the clutter, painting that purple bedroom and making the kids keep their rooms clean. These are things that seem like a lot of work but, they will make a difference. With a smaller pool of buyers looking for a new home, you need to make the most of every opportunity to sell your home. Also, don't wait! Buyers who are out looking at homes in the snow and ice are probably real buyers, not just lookers. If you wait to put your home on the market, you may miss a ready and willing buyer and you will also face more competition in the marketplace.
The February sales numbers will be in this week. If you need information on pricing your home, call me and I will be happy to share the statistics with you.
Thursday, February 28, 2008
Friday, November 09, 2007
Well, we are approaching the end of the year and the real estate market has certainly changed. There are still a tremendous number of homes available for sale and prices are starting to drop a little as the typical buying season come to a close. According to the Multiple Listing Service, there are 328 single family homes and condominiums listed for sale in Campaign County, 138 of them in the City of Urbana. Here is how the asking prices break down:
- 37% are under $100,000
- 29% are between $100,000 and $150,000
- 18% are between $150,000 and $200,000
- 8% are between $200,000 and $250,000
- 8% are over $250,000
Since January, the MLS has reported 311 sales in the County. the average sales price is currently $122,820 and the sales prices break down like this:
- 41% under $100,000
- 32% between $100,000 and $150,000
- 19% between $150,000 and $200,000
- 5% between $200,000 and $250,000
- 3% over $250,000
During the same period in 2006, there were 393 sales with an average sales price of $114,549 for a single family home. That's a decrease in sales of about 21 % but an increase of about 7% in sales price.
While the drop in the number of sales is not good news, the fact that prices have held up is encouraging. The real estate gurus think that the slump in sales will last through at least the 2nd quarter of 2008. But, since real estate is so area specific, that may not be the case in our County. Continuing employment issues and local government attitudes are the keys to how our market will fair in the near future.
If you would like statistics on your particular neighborhood or price range or you have any other real estate of financing questions, please give me a call and I will be happy to help you.
For Virtual Tours of our Lisitngs
http://www.thornhillplace.com/
For a complete list of homes for sale anywhere in the USA
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