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Chicago Area Housing Trends

2010-03-04T03:53:00Z

Lots of great information in the housing trends newsletter:

http://bethlindner.housingtrendsenewsletter.com

Keller Williams is #1 !

2010-02-17T00:39:00Z

Pending Home Sales Down but Expectations Positive for Spring 2010

2010-01-12T14:05:00Z

From the National Association of Realtors:

Pending Home Sales Down from Surge but Higher than a Year Ago

Washington, January 05, 2010

Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.

Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago. In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008. Pending home sales in the South fell 15.0 percent to an index of 97.8, but are 14.7 percent higher than a year ago. In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.

Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.

“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.

Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for December will be reported January 25 and the next Pending Home Sales Index will be on February 2; release times are 10 a.m. EST.

Detailed Forecast for 2010 by Barry Habib

2010-01-01T02:31:00Z

MMG Special Report: Detailed Forecast for 2010

by Barry Habib

The past couple of years have been challenging for the mortgage and housing industries, as well as the global economy as a whole. So what does the future have in store? Let’s first look back to see how we did on our forecast for 2009.

Scorecard for 2009 Forecast:

After accurately forecasting a down year for the Stock market in 2008, we hit the nail on the head again by forecasting an up turn in 2009.
Our predicted hot Stock picks – which included a variety of financial companies as well as oil – were on the mark again this past year.
We also predicted that the Federal Reserve would hold the Fed Funds Rate where it was for the year, and sure enough, they did.
On the employment front, we accurately stated that the job market would get worse; with the unemployment rate rising at least into the 8% range…and that turned out to be an understatement as unemployment topped 10% late in 2009.
We saw the US Dollar weakening during 2009 before stabilizing and even strengthening. The Dollar did in fact weaken, and has strengthened a bit at the end of 2009.
In the housing market, we predicted home prices would begin to stabilize and that consumers would start buying again during 2009…and this appears to have been the case.
Most importantly, our home loan rate forecast was on target. We predicted rates would remain in a range of 4.5 - 5.5%, with the lower end of that range coming in the earlier part of the year and then moving toward the higher end of the range later in the year. Rates did remain lower longer than we thought, thanks to additional Fed buying – although they did begin to creep toward the upper end of the range at the end of the year.

What’s Next? What Should You Expect in 2010?

After a couple of rough years, the big question again this year is the global economy. In 2009, Stocks helped put us on the path of recovery with an amazing run after Congress addressed the mark-to-market accounting rules. For example, Stocks have soared since hitting lows in March of 2009. In fact, between March and December, the Dow was up close to 60%, and the NASDAQ climbed over 70%. Unfortunately, the market is still fragile, which means any negative surprises will take the wind out of the sails quickly and make it tough for Stocks to eke out significant gains this year.

The sector I like best for growth this year is healthcare, since it hasn’t rebounded as much as other sectors and is due for a bump. American demographics show that the country is aging, which means more medical attention will be needed. Additionally, any Healthcare Bill that insures more people should translate into more volume for healthcare providers.

Having almost doubled during 2009, oil prices are still half of what they were in July of 2008. This wild range for oil makes it hard to forecast. There is plenty of supply, which will weigh on prices. But the US Dollar may continue to struggle, which will help buoy the price of oil. Overall – we see oil making its way higher by the summer.

Gold has had a huge run higher – and although prices declined at the end of the year, we see Gold resuming its uptrend. A lack of confidence in sovereign debt, a struggling Dollar, and the overhang of inflation in the future should help Gold make new highs and push toward $1400/ounce.

As far as the Dollar goes, it had declined significantly during 2009, and will likely decline a bit more in 2010. The endless supply of debt from government programs and low interest rates will weigh on the Dollar.

In the job market, we’re not nearly out of the woods yet. Even in the waning months of 2009, we still saw unemployment rates at 10% and nearly 500,000 new jobless claims coming in each week. The fact is…we need to see Initial Claims drop beneath 400,000 before we see stabilization in the labor market and unemployment rate.

There are about 154M people in the US labor force. And the size of the labor force rises on average by 125,000 per month, due to population growth. That means we will need to create very close to 125,000 new jobs each month to simply keep the unemployment rate stable. In order to get the unemployment rate to decline – significantly more jobs will need to be created. For example – if we would like to see the unemployment rate get back down to the 6% level that had been the norm in recent years, an additional 6 Million jobs would need to be created. If this were going to happen over a five-year period, that’s an additional 100,000 jobs per month over and above the 125,000 per month needed to keep up with the population. That means we’d need to see positive job growth of at least 225,000 jobs created per month, just to reach that 6% level within five years. Is this easy to do? Well, in the entire history of the United States, it has only happened one year – during 2006. This leads us to believe that the new normal will be higher unemployment rates for quite some time.

And consider the almost 800,000 workers who are not even categorized as unemployed, but simply as “discouraged”, as they have not actively searched for a job in the past four weeks. There’s a lot that can be assumed here, but it’s hard to imagine that these people would not reenter the ranks of those seeking employment if conditions improved a bit. That means that these people would need to be absorbed into the system before the actual unemployment rate could decline.

Additionally – perhaps the largest category that could skew the numbers are those individuals who are accepting part-time work but would prefer full-time employment. A whopping 10 Million people are in this category. You have to think that many employers would take these current part timers and give them full-time work, before hiring someone new. Again, this will make it very hard to see the rate of unemployment make any meaningful decline this year.

Home prices began to stabilize during 2009, and homes sales showed some signs of encouragement. We expect more of the same in 2010, although there will be some additional headwinds: higher rates and expiring tax incentives will likely create a lull during the summer months. After a modestly good start to the year, home prices could actually decline in some areas by 5% to 7% once the temporary stimulus expires. In the end, however, home prices should eventually and slowly begin to firm up toward the end of the year.

The Fed will have their hands full during 2010, and a big question will be whether the Fed can retain their independence in the face of political pressure. Remember, the long-term best interests of the country often conflict with the short-term reelection interests of politicians.

It’s highly likely that the Fed will be “on hold” for rate changes during most of 2010. The Fed will have to try and play Goldilocks…and get it “just right” for the amount of time they leave interest rates at these historically low levels. Hike rates too soon, and it could derail an already fragile US economic recovery. And let’s remember that the government has literally spent Trillions to try and provide stimulus to spark that economic recovery. And the Fed will likely err on the side of keeping rates lower longer, as they certainly would not want to send the US into a double-dip recession, making all the stimulus appear to be a wasted effort. And the Fed will have an excuse to keep rates low, so long as unemployment shows no sign of improving. But there is a very big risk in keeping rates too low too long…and that is inflation.

While inflation doesn’t appear to be a present concern, it can be very difficult to control once it takes hold. And its effects can be very damaging. Inflation is the enemy of all Bonds – and if it does take center stage, the Fed will have to hike rates very aggressively to attempt to keep it at bay.

This low interest rate environment in the US has provided fertile ground for what is known as the carry trade. This is where large investors can borrow at very low rates, and leverage into higher yields, resulting in huge returns.

Let’s take an example: An investor wishes to purchase $1M in Bonds yielding 4.5%. This would provide $45,000 as an annual return. In order to make the purchase, the investor puts up only 10% of $1M, or $100,000 in cash – and borrows the other $900,000 at current low rates offered to large investors, such as the 3 month LIBOR currently at 0.25% plus .75%, bringing them to a total borrowing cost of 1%. This investor borrowed $900,000 at 1%, which means their interest costs are only $9000. When the $9000 is subtracted from the $45,000 investment return, this leaves them with a $36,000 return on their $100,000 investment – or a whopping 36% “carry trade” return – on a very stable Bond investment vehicle.

At some point in the future, this carry trade will be unwound as short-term rates begin to move higher. The results will not be pretty – and many will get caught in the buzz saw. This also means that Bond prices will come under pressure as the investments are sold.

2010 is a big election year, and politicians will be doing their best to influence the Fed to keep rates low. With 36 of 100 Senate seats being contested and all members of the House facing re-election, there could be some interesting changes ahead. Currently, the Senate is made up of 58 Democrats, 40 Republicans, and 2 Independents. But, as mentioned above, 36 of those positions are up for re-election. In the House, there are 256 Democrats, 178 Republicans, and 1 vacancy…and they all face re-election. When the votes are counted, I see Democrats losing a number of seats…but probably not enough for Republicans to regain control.

Now for the big question… where will home loan rates go during 2010 and why? We’ve been forecasting rates for a long time, and this is by far the easiest call we have ever had. Rates are going higher in 2010. We do not think that the low rates seen during 2009 will be seen again. There will be more supply coming to the market in the first quarter, while the Fed’s purchases will be winding down. The overall trend for rates during this period will be higher, but as usual, this will never happen in a straight line. There will be waves and cycles moving up and down – but the trend is clearly up for rates.

Once the Fed’s Mortgage Backed Security buying program has expired at the end of March, it is likely that rates will edge higher still towards the summer. Eventually, supply will decline as origination volume slows – and mortgage rates should stabilize. But if there are hints that the Fed will be looking to hike rates, thus signaling the end of the carry trade, mortgage pricing will significantly worsen. The range for rates during 2010 is wide, with the lower end just above 5% toward the very beginning of the year. The upper end of the range could be as high as 6.5%, with rates being very volatile throughout. It is typical to see prices worsen more rapidly than they improve…but 2010 will exaggerate that characteristic, with pricing losses coming far more quickly and sharply than pricing improvements.

Final Words of Wisdom

Overall, 2010 will look better than 2009. But, good economic news is a double-edged sword, as it increases the risk of rising taxes and rates. Many people won’t understand the relationship between rates and the economy – so make sure you use the changing economic climate – and your understanding of it – as a way to establish your expertise with clients and referral partners.

You’ll also want to continue to educate your database about the Homebuyer Tax Credit and low rates in the early months of 2010. Use the impending tax credit deadline to move them off the fence before they miss this opportunity. Remember, rates are about 1% lower than they would be if Fed weren't buying all those Mortgage Backed Securities. On a 200K mortgage, that would mean about $8,000 would be needed to buy your rate down that 1%. Of course, you also have to factor in the Homebuyer Tax Credit – which is $8,000 for new homebuyers or $6,500 for current homeowners who are moving up. When you combine the 1% lower rate with the tax credit, you see that homebuyers stand to gain between $13,500 and $16,000 on a home in the mid-200K’s. That’s a big incentive for homebuyers to act now, while both incentives still exist.

Finally, in today’s wired world of Internet news and social networking sites…don’t confuse data with insight. Remember data is everywhere – anyone can regurgitate economic report numbers. But trusted insight and advice is a valued commodity.

The forecast for 2010 is challenging and realistic. But through it all – there is reason to be optimistic. Each economic condition described above offers an opportunity for us to capitalize on, whether it be by trading the markets or educating our customers, there are ways to come out ahead and differentiate ourselves from our competitors. Additionally – the mortgage herd will continue to thin. Those currently in the business are survivors, and stand a good chance of gaining further market share in the year ahead.

While we often wish for conditions to be better – we should be mindful that conditions could always be worse. Make the most of the current market conditions you are in – and have a great year ahead.

All the best to you in 2010!

Home Sales in IL Up 64% in November

2009-12-23T11:10:00Z

Illinois home sales up 64.0 percent statewide in November. Pent-up buyer demand plus low interest rates and the homebuyer tax credit incentive yielded a second month of double-digit gains for Illinois home sales in November, according to the latest IAR home sales report. Total home sales were up 64.0 percent statewide and 71.6 percent in the Chicago region. Get market talking points and U of I forecast.

Keller Williams Most Recognized Name in Real Estate

2009-12-16T23:21:00Z

http://www.retrends.com/articles/real_estate_trends_Most_Recognizable_Brand_for_2009.asp

A Vision of K-12 Students Today

2009-12-14T12:26:00Z

Will Short Sale Timelines Finally Be Shortened?

2009-12-08T19:23:00Z

From Yahoo News:

http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales

By Al Yoon Al Yoon – Mon Nov 30, 6:58 pm ET

NEW YORK (Reuters) – The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury's website.

Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government's Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.

"While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve" or offer a modification, the Treasury said in its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions -- in which the deed is simply transferred to the lender -- include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.

Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower's credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings.

In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.

"If there was a short sale program that didn't recognize the second lien holder position, it could have pretty damaging consequences for the industry," Sanjiv Das, chief executive officer of CitiMortgage, said in an interview last week.

(Editing by Leslie Adler)

My Property Taxes are UP but the value of my home is DOWN

2009-12-07T12:18:00Z

Here's a great analysis of property value vs. property taxes. Excerpted from the Wayne Township Assessor's website:

My staff and I continue to hear from residents who expect to see immediate reductions in assessed values due to the declining real estate market. While I would like nothing better than to be able to adjust values to reflect the most recent market activity, Illinois state statute prevents me from taking this action. I am required by law to determine each year’s assessments based on all of the arm’s-length sales that occurred during the previous three years. Distressed sales such as foreclosures are not arm’s-length transactions, and state law does not allow us to consider them. The 2009 assessments were determined using sales that occurred between January 1, 2006, and December 31, 2008. When sale prices are escalating, the use of three years of sales tends to prevent sudden jumps in the case of market swings. In escalating markets, assessments cannot catch up to the market; however, in market downturns it takes several years of declining sale prices for the market to catch up. Sale prices were increasing for many years until 2006, then leveled off in 2006 and 2007, and began to decline in 2008. The steepest declines have occurred in 2009; however, state law did not permit me to consider any 2009 sales activity in determining the 2009 assessments. If I were to reduce assessments based on current sales, the DuPage County Supervisor of Assessments would apply a factor to raise assessments to the level dictated by the 2006-2008 sales.

Based on the declines in sale prices that have occurred in 2008 and 2009, assessments will finally begin to fall in 2010. Because of the three-year sales requirement, these reductions will likely be moderate, but will continue for a year or two after the market eventually (we hope) begins to pick up again.

It is important to keep in mind that across-the-board decreases in assessments, when they occur, will not reduce taxes. Assessments are used to divide up the “tax pie.” The tax pie is determined by the spending of your taxing bodies. Changes in assessments, through equalization, do not change the size of the pie or an individual owner's proportion of the tax burden, or slice of the pie.

Steven Stanger, a former fellow assessor from Lake County, formulated the following illustration to help property owners to better understand the fact that spending by taxing bodies, not global assessment changes, determines changes in property taxes:

Suppose that there is only one taxable property, your house, and one taxing body, you pick the one whose services you want.

In year 1, the taxing body needs $5,000 to provide you with their services. Since yours is the only property, your tax bill has to be $5,000.

In year 2, the real estate market plunges and your property value falls by 30% (or pick any percentage you want). What has happened is that the taxing body's entire assessment base has gone down by 30%, but your proportion of the tax base has not changed. Your property still remains the only taxable property. At the same time values have fallen, the taxing body determines it needs $6,000 (a 20% increase) to provide you with their services. What is your tax bill? It has to be $6,000 because that is what they asked for from the property tax and you are the only taxpayer. Your taxes go up even though your assessment went down by a significant amount.

In year 3, the real estate market rebounds and values skyrocket by 40%. Your assessment notice indicates this trend ane your valuation is up by 40%. But the taxing body has found they only need $5,000 to operate this year. What happens to your tax bill? Your tax bill will go down from $6,000 to $5,000, despite the fact that your assessment went up 40%. Again, your proportion of the taxes didn't change so the only action affecting your bill is the change in spending, in this case a 16.67% decline from the previous year's spending request.

First Time Home Buyer EXPANDED

2009-11-06T23:44:00Z

First-Time Home Buyer Tax Credit

Extended AND Expanded!

Great news for the housing market and those of you thinking about buying real estate right now! Congress both extended and expanded the First-Time Home Buyer Tax Credit program on Thursday. The White House says the President will sign it into law today.

The up-to-$8000 tax credit's expiration date has been pushed forward to spring, requiring home buyers to be under contract by April 30, 2010, and to be closed by June 30, 2010.

The program's basic eligibility requirements remain the same:

Buyers can't purchase the home from a parent, spouse, or child
Buyers can't purchase the home from an entity in which they're a majority owner
Buyers can't acquire the home by gift or inheritance
All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however. For one, the definition of "first-time home buyer" has been expanded to include most homeowners with at least 5 years in their current home. "Move-up" buyers like these are now eligible for IRS tax credits with a cap at $6,500.

This means that you don't have to be a true first-time home buyer to claim the "first-time home buyer tax credit"!

Other eligibility changes include:

The subject property's sales price may not exceed $800,000
The subject property must be a primary residence
Income thresholds raised to $125,000 for single-filers and $225,500 for joint-filer

And remember, the First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer would receive a cash payment of $2,000 from the U.S. Treasury if his "normal" tax liability totals $6,000 and he was eligible for all $8,000 available under the new law. The complete list of qualifying criteria is posted on the IRS website.

Please feel free to call me if you would like to discuss purchasing your first home or becoming a "Move-Up" buyer. The interest rates are low, prices are down and you can get up to $8,000 - there has never been a better time to purchase a home!

Check out the IRS website for further information:
(http://www.irs.gov/newsroom/article/0,,id=187935,00.html

First Time Homebuyer Tax Credit EXTENDED

2009-11-05T20:39:00Z

Extended Homebuyer, Jobless Aid Passed by Congress (Update1)

By Brian Faler

Nov. 5 (Bloomberg) -- Congress passed legislation expanding an $8,000 tax credit for first-time homebuyers, extending unemployment benefits and providing tax refunds to money-losing companies.

The House approved the measure today on a 403-12 vote, sending it to President : All 12 House members voting against the bill were Republicans. The Senate passed the bill 98-0 yesterday after weeks of delays.

Estimated to funnel $45 billion into the economy this year, the legislation is the first major expansion of provisions in February’s economic stimulus package. The bill would extend until April 30 the tax credit for first-time homebuyers that would otherwise expire at the end of this month.

The jobless would get as many as 20 additional weeks of unemployment assistance. Companies would be given expanded ability to apply losses to previous years’ income, allowing them to qualify this year for $33 billion in tax refunds, according to Congress’s Joint Committee on Taxation.

“The homebuyers’ credit has helped pave the way for stabilization in the housing market and contributed to three consecutive months of rising home prices,” said Representative, a Washington Democrat. “Its extension will continue to make homeownership more affordable and bring confidence to a housing market and economy that remain fragile.”

U.S. unemployment is projected to average 9.85 percent next year, according to the median estimate in an October survey of economists by Bloomberg News. Lawmakers are considering whether to extend other elements of the stimulus package, including subsidies to help unemployed people buy health insurance.

More than 1.4 million Americans have claimed the homebuyer credit at a cost so far of about $10 billion, according to the Treasury Department.

The legislation approved today would allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.

It would allow homebuyers who have owned their residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible.

A Nov. 3 Goldman Sachs Group Inc. report said most of those who claim the credit would have bought homes without the program. It estimated the initiative spurred 200,000 home sales that otherwise wouldn’t have occurred.

Extending the credit to those who already own homes won’t reduce the excess inventory of housing blamed for the slump because “every buyer taking advantage of the move-up credit would necessarily be a seller,” Goldman Sachs said. It said the plan may increase housing prices by 1 percent because “sellers are likely to incorporate a fraction of the credit amount in their sale prices.”

House Majority Leader, a Maryland Democrat, called the jobless provision “an investment that pays off for all of us” because “money provided by unemployment insurance quickly goes into necessities and boosts local economies.”

The legislation would provide 14 additional weeks of unemployment benefits in all states, plus another six weeks in those with jobless rates topping 8.5 percent. About 1.9 million Americans will exhaust their unemployment benefits by the end of this year without the bill, the Labor Department said.

Representative a Texas Republican, said the provision allowing tax refunds for companies would provide “an immediate cash infusion to struggling businesses” and “free up additional payroll to help get more Americans back to work.”

Representative a Texas Democrat, criticized the provision as a “corporate giveaway” to “those with good lobbyists.” If it were a good idea, he said, why not offer it “to workers who have lost their jobs and give them back some of the taxes that they paid when they had a job?”

The bill would not add to the federal budget deficit, according to congressional estimates, in part because it would be financed by delaying until 2018 a tax break for multinational corporations related to taxes they pay abroad. The legislation would also extend a 0.2 percent employer payroll surtax that otherwise would have expired at the end of the year.

That provision drew complaints from the U.S. Chamber of Commerce, the National Federation of Independent Business and other business groups that said in a letter it “would increase the tax burden on employers just as they are deciding whether to add employees in 2010 and 2011.”

The bill is H.R. 3548.

To contact the reporter on this story: bfaler@bloomberg.net

Last Updated: November 5, 2009 14:55 EST

Wheaton IL Community Links

2009-10-11T10:25:00Z

Local Area Information Widgetgreat free widgetsWidgetboxMore info

Fall Home Maintenance Tips

2009-10-11T10:20:00Z

Recommended by American Home Warranty:

With the fall and winter months upon us, now is the time to do some routine maintenance around your home to prepare for the changing weather ahead. Taking the time to do some work now may save on some major expenses later. Some of these tasks can be performed by you, and some may need to be done by a professional.

Outside your home

Clear debris out of window wells, gutters, downspouts, and storm drains.
Remove garden hoses from spouts. Drain and store for the winter. Wrap spouts in insulation.
Drain in-ground sprinkler systems.
Check windows, doors, and siding for holes and cracks. Caulk as necessary.
Check weather stripping on windows and doors for fit and condition. Replace as necessary.
Inspect all soffit vents and other venting systems to make sure they're clear of debris.
Check painted surfaces for paint failure, water damage, or mildew. Repair or repaint if needed.
Check caulking where two different materials meet, where wood siding joins the foundation wall, at inside corners, and where the window and door trim meets the siding.
Check for broken or cracked glass and damaged screens or storm windows. Check for loose putty around glass panes. Repair glass if necessary.
Insulate outdoor faucets, pipes in unheated garages, and pipes in crawl spaces with materials such as rags or newspapers.

Inside your Home:

Have a heating professional check your heating system every year. Replace your furnace filter.
Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
Make sure you have proper insulation in both your attic and basement. While checking your insulation, if you see any dark, dirty spots, it may indicate you have air leaks coming into your home.
Remove hair from drains in sinks, tubs, and showers.
Test all smoke alarms. Replace batteries as necessary.
Check your home around windows and doors for air leaks. An easy way to check for leaks is to move a lighter around the window or door frame and see if the flame moves with a breeze. If you find a leak, you can caulk it or you may have to replace the wood frame. Repairing these leaks can save you money on your energy bill during the cold months.
Check for water leaks on the ceiling. Repair if needed.
Make sure there are working nightlights at the top and bottom of all stairs.
Protect your home from frozen pipes. How to do this.
Test your emergency generator.

Mortgage applications record high since late May

2009-09-24T09:15:00Z

Rates are low, time is short, record FHA loan apps:

From Doug Wall, Avenue Mortgage:

"Mortgage applications for last week rose to their highest level since late May, as rates dipped along with a late surge to take advantage of the $8,000 tax credit before it expires at the end of November. Government insured mortgages (FHA) made up 45.7% of all purchase applications last week - the highest proportion since November 1990."

There is HUGE opportunity right now to purchase way more home in desireable communities than we're likely to experience in the foreseeable future. Don't miss this closing window of time!

Time is Running OUT!

2009-09-09T02:35:00Z

Clock Is Ticking

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FOR IMMEDIATE RELEASE
September 3, 2009

Contact:
Mary Schaefer
217-529-2600

Deadline Nears for First-Time Homebuyer Tax Credit and
State’s Down Payment Advance Loan Program

SPRINGFIELD, Ill. — The end is nearing for the first-time homebuyer tax credit. In order to qualify, homebuyers must close on or before midnight on November 30th of this year to qualify for the tax credit. The National Association of REALTORS® estimates close to two million first-time buyers will have taken advantage of the $8,000 tax credit this year, stimulating an additional 350,000 home sales.

Qualified Illinois first-time homebuyers have a double advantage utilizing the tax credit with the Illinois Housing Development Authority’s new Illinois Home Start Loan program. The Home Start program offers a 30-year fixed rate amortized loan insured by the Federal Housing Administration (FHA) along with a zero-interest, short-term advance loan of up to $6,000 to use towards a down payment on their home purchase and to be paid back when they earn their tax credit in 2010.

“We are hearing many first-time homebuyers are generally unaware of the tax credit and the Illinois Home Start program so we are working to increase awareness about how these programs can work together to help more first-time homebuyers realize the dream of homeownership,” said Pat Callan, president of the Illinois Association of REALTORS®. “Potential homebuyers are in a position of strength in terms of financing into a secure, mortgage option program at a time when we are seeing improved affordability conditions, historically low long-term interest rates and solid inventory levels.”

While the federal tax credit deadline officially ends at midnight on November 30, consumers should be aware that the closing, not the contract signing, must take place before the expiration date.

“Ideally, we are encouraging buyers to consider contract signings by late September or early October to comfortably meet the IRS tax credit deadline, as the buying process can take time to proceed to closure.” said Callan.

The tax credit is equal to 10 percent of the cost of the home, up to a maximum of $8,000. Only properties used as a principle, single-family residence – including condos and townhouses – qualify and there are income guidelines. People earning more than $95,000 (or $170,000 if filing jointly) cannot claim the credit. The tax credit does not have to be repaid if the buyer stays in the home for three years.

Home Start, the Illinois Housing Development Authority (IHDA) loan program, offers first-time homebuyers a 30-year mortgage insured by the Federal Housing Administration (FHA) and the second option of also taking out a Home Start Advance Loan, a zero-interest, short-term loan that can be used toward a down payment and then repaid when buyers receive their tax credits. The maximum loan amount under the Home Start Advance Loan is $6,000 or 3.5 percent of the purchase price, whichever is greater.

Other terms of the Home Start Advance Loan include:

Homebuyers must qualify and secure a Home Start 30-year loan to qualify for the Advance Loan option.

Homebuyer education must be completed through a HUD-certified counselor.

Veterans and active duty service personnel don’t have to be first-time homebuyers to qualify.

The tax advance must be repaid in full by June 30, 2010, or it becomes a 10-year amortizing loan at 0.5 percent above the interest rate on the Illinois Home Start 30-year loan.

“There are many great buying opportunities for first-time buyers with property prices having been adjusted to meet current conditions,” Callan said.

Consumers can also learn more about Home Start at www.ihda.org or the first-time homebuyer tax credit at www.YourIllinoisHome.com, a consumer site developed by the Illinois Association of REALTORS®. While there, consumers can also check IAR’s tax credit clock to get an up-to-the-minute update on how much time is left for using the tax credit.

Time to Get $8K Tax Credit is Running Out

2009-08-26T11:01:00Z

Time is running short to take advantage of the governments $8000 tax credit for first time home buyers or those who haven't owned in three years. This from the IAR:

http://www.illinoisrealtor.org/files/IllinoisREALTOR/TaxCredit_Hurry.pdf

$8000 Tax Credit to End SOON

Great News for July Housing Sales!

2009-08-22T13:51:00Z

Here is a link to an outstanding article from First Trust in Wheaton IL:

http://www.ftportfolios.com/Commentary/EconomicResearch/2009/8/21/existing_home_sales_increased_7.2percent_in_july_to_an_annual_rate_of_5.24_million

A Beach Wedding

2009-08-16T02:24:00Z

A beach wedding on a picture perfect June day in Ocean Isle NC

Follow the link for a quick slideshow:

http://pinerphotography.myshowit.com/lauren_ericwedding

The Grandma Club!

2009-08-16T01:49:00Z

Grandkids are God's Blessing!

                                                                          elijah lindner   4 years old

           noah and enoch lindner       10 months old


         kaitlyn palmer     6 weeks old

Timing is Everything

2009-08-15T05:00:00Z

A local, highly respected lender supplied the following to us on Weds this week:

The FOMC (Federal Open Market Committee) and Chairman Ben Bernanke left the Fed Funds rate unchanged today – no surprise here.However, they made a very important announcement: the Feds will stop buying U.S. Treasury securities by about the end of this October. What does that mean???

A huge reason mortgage rates have stayed so low has been because the U.S. gov’t has been buying up Treasury securities for over a year now. The effect of the gov’t buying these securities has been to keep the yields on the securities (ie: interest rates) lower. When the gov’t stops buying, the yields will rise, which in turn means mortgage rates will begin to move upward (barring some huge disaster like 9/11).

Buyers should know (and sellers who are looking to buy after their sale, but are too stubborn to lower their asking price) that time is quickly running out on their opportunity to grab rates near 5% on a 30-year fixed rate. Also 1^st time homebuyers must close on their purchase prior to December 1, 2009 to qualify for the $8,000 tax credit.

Timing is EVERYTHING in real estate. Seize the unprecedented opportunity!