Valerie Karpeck Girl About Town

Real Estate Is ‘as Affordable as it Gets’ Says the Wall Street Journal

vkarpeck — Wed, 09 Feb 2011 21:37:29 +0000

Now is a good time to buy real estate, according to data from Moody’s Analytics. Home affordability has returned to pre-housing bubble levels or even fallen below the average in many U.S. markets.

In fact, housing affordability by the end of September had returned to or fallen below the average reached between 1989-2003 in 47 of the 74 housing markets that Moody Analytics tracked.

In September 2010, the ratio of home prices to annual household income had fallen to 1.6–below the historical average of 1.9 between 1989 and 2003. The ratio peaked in 2005 at 2.3.

“Based on incomes, this is as affordable as it gets,” says Mark Zandi, chief economist at Moody’s Analytics. “If you can get a loan, these are pretty good times to buy.”

Some of the most undervalued markets include Cleveland, Detroit, Las Vegas, Atlanta, and Phoenix.

But those cities also are facing high rates of foreclosures and more borrowers defaulting on their mortgages that could decrease values further in those cities before they start to improve, Zandi says.

Source: “Home Affordability Returns to Pre-Bubble Levels,” The Wall Street Journal Online (Feb. 8, 2011)

Mortgage Rates Continue Record Slide

vkarpeck — Fri, 12 Nov 2010 18:57:06 +0000

Freddie Mac reports that rates on fixed mortgages again fell to their lowest levels in decades this past week, with the average interest on 15-year loans dipping to 3.57 percent from 3.63 percent a week earlier, and the average interest for 30-year loans sliding to 4.17 percent from 4.24 percent. That is the lowest since 1971.

With rates like these and Home prices more affordable than they’ve been in years, it is such a great time to buy!

Data Source: Boston Globe 11/12/10

October Housing Market Stats for the Western Burbs

vkarpeck — Thu, 11 Nov 2010 00:33:37 +0000

Read ‘em and weep - or smile – depending on what town you’re most interested in!

Statistics are vs. October of 2009 and apply to Detached Homes.

Burr Ridge – Home Sales Up 100% ; Avg Sale Price Up 112.4%

Clarendon Hills – Home Sales Down 30% ; Avg Sale Price Up 4.5%

Darien – Home Sales Down 20% ; Avg Sale Price Down 1.7%

Downers Grove – Homes Sales Up 3.4% ; Avg Sale Price Down 2%

Elmhurst – Home Sales Down 41.3% ; Avg Sale Price Down 11.8%

Hinsdale – Home Sales Down 25% ; Avg Sale Price Down 41.5%

La Grange – Home Sales Down 54.5% ; Avg Sale Price Up 27.9%

Lemont – Home Sales Down 30.8% ; Avg Sale Price Up 27.3%

Lisle – Home Sales Down 45.5% ; Avg Sale Price Down 16.5%

Naperville – Home Sales Down 27.6%; Avg Sale Price Up 3.1%

Oakbrook – Home Sales Flat ; Avg Sale Price Flat

Western Springs – Home Sales Down 37.5% ; Avg Sale Price Down 6.1%

Westmont – Home Sales Down 36.4% ; Avg Sale Price Up 22.8%

Willowbrook – Home Sales Down 33.3% – Avg Sale Price Down 36.9%

Woodridge – Home Sales Down 16.7%; Avg Sale Price Up 9.3%

Data Source: Mainstreet Organization of Realtors

What’s In, What’s Out With Home Design

vkarpeck — Fri, 29 Oct 2010 15:50:11 +0000

Coinciding with a sluggish housing market, home owners have changed their preferences about how space is used and designed in their homes. Function over extravagance has reigned in recent years, along with affordability, when it comes to home features, according to the latest American Institute of Architects Home Design Trends Survey for the second quarter of 2010.

Here are a few highlights from the report, based on nearly 300 residential architects who were surveyed about the design preferences of U.S. households.

WHAT’S IN

Home offices: More people are working out of their home or telecommuting, prompting more home owners to want a dedicated workspace in their homes.

Outdoor living areas: Home owners want to expand their living space into the outdoors and are seeking to incorporate more outdoor living elements into their lifestyles, AIA Chief Economist Kermit Baker said in a public statement about the survey.

Mud rooms: The need for additional closets and other storage space, as well as the increasing informality of space in the home, is driving more home owners to want mud rooms, according to the report.

Energy-saving features: Home owners are seeking energy efficient products and systems that will reduce their rising utility costs. Those energy efficient products and materials that have boasted the greatest increase in interest in recent months include items such as double and triple glazed windows, tankless water heaters, and low maintenance materials.

WHAT’S OUT

Media rooms/home theaters
Exercise/fitness rooms
Hobby/game rooms
Home workshops
Kid’s wings/guest wings
Interior kennels
Interior greenhouses

By Melissa Dittmann Tracey, REALTOR® Magazine

How does the current freeze on foreclosures affect you?

vkarpeck — Mon, 18 Oct 2010 21:01:11 +0000

Right now, the freeze impacts bank-owned properties that are owned and/or serviced by Ally Financial/GMAC Mortgage, JP Morgan Chase, and some properties that were owned by Bank of America.

If you are a buyer who already had a contract on one of these homes, it may have been cancelled, put on hold, or extended.

If you are a troubled homeowner who was somewhere in the foreclosure process, the freeze has likely bought you some time.

At least for now, the freeze may help stabilize prices as buyers eager to move forward on their purchase look to the regular inventory of homes. This is good news for sellers.

For buyers, there are still deals to be had in the normal market as values have dropped significantly since their peak. That, in combination with historically low interest rates makes this a perfect time to buy, exclusive of the distressed property market.

Case-Shiller index shows slight home-price increase in July [Updated]

vkarpeck — Wed, 29 Sep 2010 02:07:24 +0000

Case-Shiller index shows slight home-price increase in July [Updated].

9 Facts You Should Know about Today’s Illinois Real Estate Markets

vkarpeck — Tue, 28 Sep 2010 00:26:21 +0000

Think locally and long-term and do your homework.

1. Affordability is at a generational high.

The combination of lower home prices and historically low mortgage rates has made housing exceptionally affordable relative to household income.

2. Grab a low interest rate while they’re still here.

Mortgage rates remain at historic lows but this scenario can’t last forever. A quarter percent change in the interest rate can mean tens of thousands of dollars in costs over a 30-year mortgage. For example, an increase from 5 to 6 percent on a 30-year $200,000 loan can change the monthly payment of principal and interest by $125, an increase of 11.6 percent.

3. Today’s market offers opportunities for first-time, trade-up and investment buyers.

and investment buyers. If you’ve been thinking about buying your first home, a move-up home or second home—or find you have to relocate—current inventory levels plus historically low interest rates and affordable prices make this an excellent buying opportunity.

4. Sellers must set a compelling price.

Sellers must set a compelling price.

5. Sellers can recoup on the buy side.

Waiting until later may cost you in the long run. What a seller may lose on the sell side can be recovered on the buy side when you take advantage of the low interest rates and lower priced homes.

6. Good credit and staying within your budget key.

Lending rules have tightened after the turmoil in the financial markets in recent years, and this will affect your ability to get a loan. It’s important to pre-qualify for a mortgage to know how much home you can afford. Check your credit report for free at www.annualcreditreport.com and take steps to safeguard or improve your credit history.

7. Safe and affordable mortgages are available…even for people with less-than-perfect credit.

A mortgage backed by the Federal Housing Authority (www.FHA.gov or www.HUD.gov) can be the answer for first-time buyers who have a hard time getting financing and enough money for the down payment. Also, the Illinois Housing Development Authority (www.IHDA.org) offers special loan programs that include down payment assistance.

8. Owning beats renting over the long-term.

Owning a home is how many families begin to accumulate wealth. A typical homeowner’s net worth is 49 times that of a renter’s.* Homeownership is an investment in your future offering immediate shelter benefits and long-term value. *According to the National Association of REALTORS® calculations using statistics from the Federal Reserve Board.

9. Getting help from an Illinois REALTOR® is a smart financial decision.

It has never been more important to work with a REALTOR®, the local market expert, to properly assess market values. Some areas have two levels of pricing—distressed sales and traditional sales. REALTORS® have access to the most up-to-date and comprehensive property listings and sales information. REALTORS® know your market and can offer trusted counsel for both buyers and sellers.

Source: Illinois Association of Realtors®

August Housing Market Stats for the Western Suburbs

vkarpeck — Sat, 25 Sep 2010 19:40:42 +0000

What follows are the housing figures for the western suburbs of Chicago vs. the month of August 2009. The data looks at Detached Homes that were sold.

Burr Ridge – Home Sales Down 28.6%; Avg Sale Price Up 21.9%

Clarendon Hills – Home Sales Down 12.5%; Avg Sale Price Up 93.2%

Darien – Home Sales Up 57.1%; Avg Sale Price Up 16.2%

Downers Grove – Home Sales Down 42.2%; Avg Sale Price Up 17.1%

Elmhurst – Home Sales Flat; Avg Sale Price Down 10.1%

Hinsdale – Home Sales Up 33.3%; Avg Sale Price Up 17.1%

LaGrange – Home Sales Up 55.6%; Avg Sale Price Up 32.8%

Naperville – Home Sales Up 28.1%; Avg Sale Price up 2.3%

Oakbrook – Home Sales up 200%; Avg Sale Price Down 62.1%

Western Springs Home Sales Down 26.3%; Avg Sale Price Down 5.8%

Westmont – Home Sales Down 50%; Avg Sale Price Down 22.1%

Willowbrook – Home Sales Down 42.9%; Avg Sale Price Down 15.3%

Woodridge – Home Sales Down 18.8%; Avg Sale Price Up 39.9%

Source: Mainstreet Organization of Realtors

Great Event Coming Up! Living in the Moment: Improvise Your Way to Better Communication

vkarpeck — Wed, 15 Sep 2010 22:58:41 +0000

This promises to be a great event for which I am one of the organizers!

Join Second City performer and public speaking instructor Derrick Aguis as he teaches you to utilize improvisation in everyday life to improve your communication skills.

- Learn how to become quicker on your feet and more confident as a speaker / communicator.

- Participate in entertaining exercises that focus on listening, word association and non-verbal communication.

- Learn how to get your finger on the pulse of any audience and adapt to their needs.

- Discover how to have fun while thinking on your feet and have a few laughs along the way.

Details:

Date: Wednesday September 29th

Location: Holiday Inn Willowbrook

7800 Kingery Hwy, Willowbrook, IL 60527

Registration & Networking: 5:30-6:00

Workshop: 6:00-7:00

Cost: $20.00 in advance $25.00 at the door

includes appetizers – cash bar

Men & Women are encouraged to attend!

30-Year Mortgage Rates Rise – Don’t Delay!

vkarpeck — Sat, 11 Sep 2010 14:49:25 +0000

Average interest on 30-year fixed mortgages rose for the first time since June, lifting to 4.35 percent this week from 4.32 percent last week and 5.07 percent a year ago, reports Freddie Mac. Rates for 15-year fixed loans held at 3.83 percent, the record low set last week.

Also, the five-year adjustable-rate mortgage averaged 3.56 percent, compared to 3.54 percent last week and 4.51 percent a year ago; and the one-year ARM fell to 3.46 percent from 3.5 percent last week and 4.64 percent a year ago.

Source: The Wall Street Journal, Amy Hoak (09/10/10)