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!
