Real Estate info- buying, selling and everything in between

June 2010 And Mid Year Quarter Real Estate Market update for O'Fallon IL.

 

Nationwide: More money for troubled homeowners...

The Treasury Department has approved another $1.5 Billion to help homeowners in the five States with the highest levels of foreclosure rates.  Arizona, California, Florida, Michigan and Nevada all will be receiving the additional funds.  Currently on the table for discussion (and should pass by the end of the month) is another 600 Million  for the next five states on the list, North Carolina, South Carolina, Ohio, Oregon, Rhode Island.

 

 Locally:

The end of the tax credit came and went...then came back.  The original June 30^thdeadline for closings was extended to assist those caught in the backlog of home loans in the pipeline that could not get the loan packages completed on time.  Some interesting numbers for O'Fallon and the tax credit's impact on the local market.  There was actually very little difference between June of 2009 and June of 2010 in the number of closings inO'Fallondespite the increased number of first time homebuyers taking advantage of the credit.  For example there was exactly 1 more closing this June than in 2009...not what I would call an overpowering impact.  The graphs below will illustrate this far better than I can.

 

Looking at 2010 individually it shows June was by far the most active month in 2010 year to date

 

 

 

However when you look at the same time period from 2009-2010 it shows only marginal improvement excluding a spike in April:

 

 

 

Year to date numbers are "almost" encouraging.  It is still very difficult to ascertain the true impact of the credit, but a clearer picture should be available by mid August. However the numbers are pointing in the right direction:

 

Good News!  Average Days on Market (DOM) has fallen!  This is the time it takes from when a house is first listed to when it closes.  We have gone from a 6 year high of 161 days in 2009 back down to 149 for 2010. 

 

Price range:  Bottom line...if your home is priced below $300,000 you have a FAR better chance of getting an accepted offer in an acceptable time frame.  As shown below 82% of the homes closed in June 2010 were below $300,000.

 

Looking at this same issue expanded over the year thus far (6/30/2010) paints a much stronger picture with 91% of the homes closed in O'Fallon IL falling below the $300,000 mark.

 

 

Market Time:

Average Days on Market is still (and always will be) directly tied to sales/list price.  For example average market time for June 2010 in the $200,000-$299,999 range was 104 days.  If you jump over the $300K mark your market time increases to 296 days, over a 6 month increase! Go up even further to over $400,000 and it jumps to a staggering 474 days.  Pricing a home correctly the first time is one of the most critical aspects of the real estate market today and sadly often ignored.

 

 

To recap, the tax credit helped on a nationwide scale, but viewing it in a hyperlocal level is difficult at best.  There has been an incentive for first time home buyers in place since last year so undoubtedly there has been a benefit to the local market but how much remains to be seen.

 

Go Green O'Fallon!    

 

I was a bit dismayed by a visit from the local Boy Scouts yesterday.  Seems we have less than 2,000 residents in O'Fallonparticipating in the recycling program offered by Waste Management.  Folks it costs $5.66 a month.  You will produce roughly 127,604 pounds of garbage in your lifetime...recycle.

Another benefit: If the community exceeds 2000 participants the price will decrease to $4.66.   For more info please contact Waste Management at 1-800-989-2783.

 

 

 

Tax credit extension passes Congress: U.S. homebuyers who are eligible for a Homebuyer Tax Credit now have until Sept. 30 to close the transaction and receive the credit. Congress has extended the closing deadline, which had been June 30, by an additional three months. President Barack Obama is expected to sign the legislation soon. The action affects an estimated 180,000 homebuyers who, because of circumstances beyond their control, had been unable to close on their purchase by the original deadline. Short Sale and REO transactions are holding up many of these closings. Qualified first-time buyers can receive a credit of 10 percent of the home price up to $8,000. Repeat buyers are eligible for a credit of up to $6,500.

 The National Association of Realtors estimates that 4.4 million people have received the credit since it was made nonrefundable in 2009. That includes 2.9 million first-time buyers and 1.5 million repeat buyers. © 2010 RE/MAX, LLC. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.

 

 

An amendment that would have extended the U.S. Homebuyer Tax Credit closing deadline from June 30 to Sept. 30 died with the American Jobs and Closing Tax Loopholes Act of 2010, which also would have extended U.S. jobless benefits. The Senate voted Thursday 57-41 against the legislation.

NAR estimates that as many as 180,000 buyers who went under contract before April 30 could miss out on the credit without an extension.

"Unfortunately, this piece of legislation ended up being very controversial," says Dave Liniger, RE/MAX Chairman and Co-Founder. "We were optimistic when the Senate approved the amendment adding the tax credit extension to the jobless benefits bill.

"It's going to be tough to get the extension passed by the deadline, but we won't stop trying. In the meantime, agents need to do everything they can to help their clients close by June 30."

© 2010 RE/MAX, LLC. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.

Don't forget today marks the kickoff for the  O'Fallon/Troy Road Project so be prepared:

 

 

Stay Tuned For the second quarter O'Fallon IL Real Estate Market Update!

 

 

 

 

 

Real Estate market update for O'Fallon IL May 2010

NATIONWIDE:

The results are somewhat mixed on the effect of the Obama administration's program that allows homeowners to modify their current mortgages in an effort to keep them in the home and avoid foreclosure.

By the end of April 2010 roughly 1.2 million mortgages had been given a trial loan modification.  Just over 25% of them have already been dropped from the program according to the Wall Street Journal.  The two main reasons for being eliminated from the program were:

•1.)    Failure to make payments

•2.)    Failed to prove they met the requirements for income and assets.

There were 295,000 homeowners given permanent loan modifications in April -- an increase of 30% from March.

 

LOCAL:

Things in O'Fallon continue to show signs of growth with 70 homes currently under contract despite a slight drop in closings (-3) from last month.

 

 

 

As mentioned above, there are currently 70 homes under contract (56 are pre-owned and 14 are new construction) the true picture of the market should reveal itself next month after the close deadline for the tax credit runs out on June 30, 2010.

 

Once again Price range continues to dominate with 94% of homes closed, had a sales price below $300,000.

 

 

 

This is reflected in the year to date stats as well with 127 of 135 homes closing below $300,000.

 

Looking at numbers from a year ago for the same time period we are ahead (only slightly) but ahead nonetheless.

 

 

 

 

 

July will be a very important as it will show the first true picture of the Real Estate Market since last Fall.  And don't forget!  Race for the cure is this Saturday.  Please stop by the RE/MAX balloon and say hello if you happen to be downtown.  Good Luck to all the runners!

 

 

 

 

 

The tax credit has officially expired and the numbers are pointing to it being a huge success.  Nationwide data is not in yet for April however in March home sales were up 21% over the same period last year according to The National Association of Realtors (NAR) Pending Home Sales Index. 

First time home buyers made up 44% of home sales in March across the nation.   The Pending Home Sales Index reflects signed contracts and not actual closings but is a pretty good indicator of things ahead. The true picture of what effect the tax credit had on the housing market will continue to form over the next few months as any home under contract will need to close by the end of June.  This points to a very healthy next 7 weeks for home closings.  That is the good news.  Economist with NAR expect sales to soften in the coming months, the key test will be in the fall and winter.  Additionally, the economic crisis in Greece could have an impact on things as well.  Germany - who is invested heavily in Greece was also a very prolific buyer of mortgage notes and collateral debt obligation.  This "could" produce a second credit crunch.  All that said, things seem to be pointing in the right direction.

 Moving on to a more local level...

  

Currently there are 83 homes under contract in O'Fallon IL.  This represents a 29% increase over this same time last year.

Of the 83 homes currently under contract, 84% were listed between $100,000-$299,999.

 

 

 

 

There were 38 homes that closed in April 2010.

37 of these were re-sale with an average price of $182,878 and 140 days on the market

1 was new construction with a sales price of $214,500 and 126 days on the market.

 

94% of the homes closed in April were below $300,000.

 

 

 

Looking back... April of 2010 was the best we have seen in 3 years:

 

 

Closings are up over 19% Year to date from last year:

  

 

Last but not least it seems (for now) that the downward trend on average prices may have leveled out.  In 2009 thru April the average sales price was $179,000 for the same period this year it is $180,000.

 

 

Welcome to Hopkinton!

Congratulations...you ran

You made it. All those cold mornings in the dark, the rain, snow and wind, you ran.  While others slept or hit snooze you ran.  You ran when you didn't want to, you ran when you felt terrible...you ran.  20 miles (or more) time that could be spent doing other things, you found a way. 4am is a tough wakeup call but you did it... and you ran.  When others said "26 miles?  I could never do that" you smiled and...ran.  Injuries, aches and pains that sideline most people... you ran.   You ran...reaching for something, seeking...today.  This is your moment and you are in great company.  So for all those times you did not hit snooze...for all the discipline, dedication, inspiration and passion you have shown, CONGRATULATIONS and GOOD LUCK!  Enjoy Boston and Hammer it!

"A lot of people run to see who's the fastest. I run to see who has the most guts."

Steve Prefonatine

  

"The credit belongs to the man who is actually in the arena; whose face is marred by sweat and blood; who strives valiantly; who errs and comes short again and again because there is no effort without error and shortcoming; who knows the great enthusiasms, the great devotion, spends himself in a worthy cause; who at best knows in the end the triumph of high achievement; and who at worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who have never tasted victory or defeat."

Theodore Roosevelt

Do you realize how easy it is to save water in your home without sacrificing the performance or design of your plumbing fixtures? A simple way to identify high performance, water conserving fixtures is with the WaterSense label. Products that have achieved this label will be at least 20% more efficient than conventional models.

 

Similar to the EnergyStar program, WaterSense is sponsored by the EPA to protect the future of our water supply and promote water efficiency. WaterSense qualified fixtures must be tested to verify that they not only meet the required flow rate, but also that they perform as well or better than conventional models.

So, why should we conserve water to begin with? St. Louis is located between two great rivers, and water in our area is a relatively inexpensive utility. However, a recent government survey showed that at least 36 states are anticipating local, regional, or statewide water shortages within just 4 years. Need a few more reasons?

Population growth - Water-loving Americans use an average of 100 gallons of water every day. With more and more people inhabiting our beautiful planet, hundreds more gallons are being used every day. Less than 1% of all the water on earth can be used as drinking water. To put this in relative terms, if all the water in the world were fit into a gallon jug, the fresh water available for use would equal only about 1 tablespoon!

Cost - The average household spends up to $500 / year on water and sewer bills. By making a few changes to your fixtures, each household could save approximately $170 / year.

Energy Consumption - It requires a considerable amount of energy to deliver and treat the water that we use everyday. For example, allowing your faucet to run for 5 minutes uses about as much energy as leaving a 60 watt light bulb on for 14 hours. Approximately 4% of the nation's electricity consumption is used for moving and treating water. If 1% of the population replaced older toilets with WaterSense labeled ones, the US would save enough electricity to power over 40,000 homes for a month!

So, what kind of fixtures are WaterSense qualified? At this point, only faucets and toilets can boast the WaterSense label. WaterSense is such a new program that they are still determining what the flow rate for a WaterSense Showerhead or Handshower should be - likely 2GPM (gallons per minute).

WaterSense Faucets use only 1.5GPM or less as compared to 2.75GPM for conventional faucets. If you're not in the market for a new faucet, a simple solution would be to change your existing aerator to a low-flow aerator. This simple and inexpensive step can save up to 14,700 gallons of water every year, which equates to a 45% savings of your annual water use at each faucet! Also, repair those leaky faucets! It can save up to 140 gallons of water every week.

 

WaterSense and High Efficiency Toilets, use a maximum of 1.28GPF (gallons per flush) vs. conventional toilets that use 1.6GPF, or even up to 3GPF for models older 16 years. Dual Flush Toilets, like Kohler's Strela shown below, provide the option for a big or small flush, depending on your needs. Even if you're not in the market for a shiny new toilet, you could place a bottle of water in your existing tank to displace some of the water, resulting in a lower GPF.

 

You can also check for a leaky toilet by putting food coloring in your tank. If the coloring seeps into the bowl without flushing, you have a leak. Replacing an inexpensive leaky flapper can save thousands of gallons each month. 

 

There are also low-flow showerheads and handshowers available, even though they are not yet WaterSense labeled. Provided that you have a shower valve that can handle the lower flow rate, changing out the showerheads from the conventional 2.5GPM to one with either a 1.75 or 2GPM flow rate can conserve up to 7700 gallons of water per year.

You may have noticed that I've showcased a number of Kohler WaterSense fixtures in this article. Kohler has been named WaterSense Partner of the Year in both 2008 and 2009. An excellent local resource for Kohler, and other quality brands, of water-conserving plumbing fixtures is Crescent Plumbing Supply. http://crescentsupply.com/

Other great water conserving ideas for the home include installing a Hot Water Dispenser or a Touchless Faucet. Hot Water Dispensers avoid the need to let the water run while waiting for it to get hot, and Touchless Faucets will only run with the faucet is in use. Another great idea for the environment includes Water Filtering Faucets, which would eliminate the need for disposable plastic bottled water.

Want to learn a little more? Spend 90 more seconds out of your day taking this Water Conservation quiz and Kohler will donate $1.00 in water-conserving products to Habitat for Humanity: http://www.savewateramerica.com/home.swa#/home/

 

 

 

 

 

 

So far in 2010O'Fallon is averaging 20 homes a month closed.  Numbers are fairly consistent with January seeing 20 homes close, February was at 18 and March was at 22.

This shows a 7 home increase over the first quarter of 2009.

 

 

 

Additionally average sales price is on the rise over 2009.  Average price for homes closed in O'Fallon for 2010 was $178,010 while 2009 was $176,819.  Not a huge jump but forward progress.

 

 

 

Price range continues to be dominated by the below $300,000 group.

 

 

 

 

 Of the 60 homes closed in 2010 93% closed below $300,000

 

 

 

Next month will give us the first "true" picture of the market as the tax credit is set to expire April 30^th.  Currently there are 72 homes under contract and 11 closed already (thru April 12^th, 2010) in O'Fallon IL.  A large percentage of these are undoubtedly due to the stipulation that you must be under contract prior to April 30^th 2010 to qualify for the credit.

Last but not least!

 

We are pleased to announce the launch of two new websites:

The Healthy Abode

and 

 

Holden Design Group

 

 

Please feel free to stop by and visit either one.

 

 

 

 

 

The Healthy Abode - Countertops

 

 

So, you're in the market for a new countertop, and you want something that is earth-friendly, durable, sanitary, low-maintenance, gorgeous, and won't break the bank.  Where to begin and how in the world can an eco-countertop boast all of these features?  Let's talk. 

 

First, to appreciate what makes a countertop sustainable, it's essential to understand the meaning of sustainability.  According to Merriam-Webster's dictionary, sustainability is "a method of harvesting or using a resource so that the resource is not depleted or permanently damaged."  My 2 cents - a sustainable product should last pretty-much forever, but can be easily reborn, redistributed or repurposed when necessary.  You sometimes may pay a little more up front for sustainability, but will undoubtedly end up saving in the long run. 

 

Sustainability is about the "big picture." It's not just about "going green" - whatever that means.  A truly sustainable product is defined by its content; long-term availability; the manufacturing process; how it's transported, how far, and by whom.  The safety and well-being of workers producing the product is imperative, as well as what happens to the product when its lifetime is over.

 

Ok, so now that we're on the same page, back to countertops.  Probably the first types of countertops that come to mind are inexpensive Laminate; Corian; and of course, the overdone Granite.  Laminate is a thin plastic material that requires a base underlayment (all too often, formaldehyde-emitting particleboard) and is attached to this underlayment with sometimes toxic adhesives.  If choosing laminate, look for one with recycled plastic, nontoxic glues, and formaldehyde-free substrate.  Due to its petroleum base, Corian and other acrylic composite countertops are very poor environmental choices - check those off the list.  Granite countertops, though beautiful and durable, are not a sustainable choice due to the ecological damage incurred by quarrying practices, and the enormous amounts of energy and pollution produced when shipping this heavy material halfway across the globe.  Not to mention the chance of bringing the dangerous carcinogen, radon (among other types of radiation) into your household, emitting from the stone itself.  Yikes!

 

So, let's first examine concrete as a countertop material.  Concrete is durable, local, has low VOC's (volatile organic compounds, which we will discuss in a future post) can be recycled, and is composed of recycled content.  It's extremely versatile, completely customizable, can be any color of the rainbow, and can boast added character when made in conjunction with recycled glass and other materials.  It's easily cleaned with mild soap and water, and you'll want to periodically seal the surface.  Lucky for us St. Louisans, we have a fabulous local concrete resource, CK Designs:  http://www.ckconcretedesign.com/

 

PaperStone is another interesting option, consisting of 100% post-consumer recycled paper fiber and a non-petroleum nut resin.  Who knew how durable paper could be!  It is a non-porous surface that is heat-resistant to 350 degrees, plus resistant to scratches and stains.  It's warm to the touch, and has a slight "yield" that prevents glass objects from breaking when dropped or set down too hard.  PaperStone comes in a variety of shades, and is comparable in price to some granite or quartz surfaces.  A regular application of PaperStone Finish, a natural wax and food grade mineral oil, is recommended for protection against intense heat and moisture, and defends against harmful UV rays that can alter the color.

 

 

A truly stunning earth-friendly option is Eco by Constantino.  This product is comprised of 75 percent recycled glass , mirror, and porcelain, and is bound by a corn oil based resin.  A completely non-porous material, Eco does not require sealing, and is nearly impossible to scratch, scorch, or stain.  Primary maintenance includes simply wiping down with a mild soap and water mixture.  The only precaution with this product is that you will dull your knives when cutting directly on the countertop's surface.  Oh, and don't use products like Draino or floor strippers on it... 

    
 Still haven't found what you're looking for?  How about a countertop with 80 to 95 percent post-consumer recycled glass like Vetrazzo, IceStone, or Enviroglas?  Using glass from reclaimed bottles, dinnerware, construction demolition, even traffic light lenses, and other hard-to-recycle types of glass, these countertops each have a their own, unique history.  Maintenance includes cleaning with warm, soapy water, and regular sealing to prevent against staining.  They are as durable as granite and less porous than marble - and comparable in price to both.

 

 

 

Natural Quartz surfaces like Cambria, Caesarstone, and Silestone are eco-friendly as well.  This material is completely non-porous and nonabsorbent and you will never have to seal it, as with most other natural countertops.  Quartz surfaces are stronger than granite, radon-free, and have no impact on indoor air quality-which means no VOC's.  There are countless color options, in both solid and multi-colored varieties.  Quartz is incredibly heat resistant, and also hard enough to dull your knife if you fail to use a cutting board. 

Bamboo countertops are another option that I must mention, but buyer BEWARE.  Though it is a popular renewable resource because it regenerates approximately every 7 years, you must be extremely vigilant of the source when selecting a bamboo product.  The harvesting practices are not always as sustainable as you may believe.  Some bamboo is harvested too early, resulting in a very soft end product that is not very durable.  On top of that, some countries are actually deforesting their native trees to make way for bamboo forests!  Not to mention that so much bamboo comes from the other side of the world and is shipped across the ocean in polluting freight vessels, consuming enormous amounts of gasoline and energy.  In some cases, bamboo forests are being harvested by private owners who are endangering the lives of animals that are dependent on these plants for survival. For example, the Bamboo Lemur of Madagascar is just one animal that was named on the recent world report of endangered animals - 90 percent of their diet comes from bamboo.  If considering a wood or bamboo countertop, please make sure to use an FSC (Forest Stewardship Council) Certified product, like Plyboo, so that you are assured that it comes from a source that employs responsible forest management, and preferably from a local source. 

 

Stainless steel countertops, when made from a good quality Stainless Steel (the lower grade, the better) is long-lasting, hygienic, durable, and low-maintenance.  It is completely recyclable, and on average, is made from 75 percent recycled stainless steel scrap metal.  There is also recycled ceramic tile as a countertop alternative, but make sure you seal that grout!  There are quite a few other environmentally friendly countertops, but I would never finish this blog if I went into detail for each and every one of them.  Of course, you could also find the ultimate sustainable countertop by paying a visit to your local architectural salvage dealer to see what treasures they may have to offer.

 

Coming soon!

TheHealthyAbode.com

 

 

 

 

 

 

And with that date the tax credit expires...sort of. You need to have a home under contract by then in order to qualify. The rules have been expanded and you no longer need to be a "First Time" home buyer in order to capitalize. O'Fallon IL and the surrounding areas have a terrific amount of Real Estate inventory and rates are still very attractive, so now is the time to take advantage of this!