It's HERE - The Federal Budget

You just have to spend some time with this! See where your tax money is planned to go. This graphic is amazing. Be patient with it. Click on full screen (the black box) and then help in the upper right corner. Then be amazed!

New Blog

Well, readers, I've started anothe blog site to eventually replace this one. It is more consumer centered, and I am going to keep it more active! Really!

Please check it out and join in:

http://reconsumer.wordpress.com/

Bob

My View of Our Local Housing Market

The good news is that we are experiencing a spring surge in market activity, as expected! The local inventory has shrunk to about a seven-month of supply (homes on the market divided by sales rate) which classically indicates a “normal” market compared to the near 12-month supply at the start of the year. It's a much better time for buyers and sellers.

Well, not so fast on calling it normal, though. Much of the increased sales activity is being driven by first time home buyers and distressed property sales, and is generally in the lower price ranges. The $8000 tax credit for first time buyers, extremely low interest rates and the lowest home prices in years are attracting smart buyers into their first home purchases. The other driver for increased sales is foreclosures and the sale of bank-owned properties to investors. This is generally not the same buyer group, as many of these properties are in poor repair and often will not qualify for a loan by first time buyers with limited funds or resources for improvements. With these exceptions, then, there are relatively few active buyers compared to what we have seen in the past “normal” market. From a price perspective, it is still very much a buyer’s market.

Our local market has been immune from the extremes experienced in other parts of the country, but general economic conditions have certainly driven home prices lower in our area as well. It would be tempting to “call the bottom” on our home prices because of the spring surge in sales activity, but that would be whistling in the wind. Every economic indicator I’ve studied indicates that home prices will continue to fall, driven primarily by a dramatic increase in foreclosures and their eventual sale prices. Our local employment and general economic conditions are important factors, of course. Nationally, it appears the administration’s efforts to date have been ineffective in restoring a general increase in home equity. The real bottom is probably yet to come.

So, what’s it all mean to us? Well, buyers, there are many wonderful homes on the market at attractive prices, with low cost financing that may not last. Sellers, the normal spring surge in activity is providing sales opportunities today that may not last. If you, or anyone you know, are thinking about buying or selling a home, this may be just the time. Remember, all real estate markets are local. Please contact me and let the East of the Arch Team provide you professional service in meeting your needs in this market.

NEW SITE

I have added a new site just for First Time Home Buyers to provide some useful guidance to my favorite kind of clients.

http://www.firsthomebuyersite.com/

Please, if you know of anyone considering that first home, forward this post to them. It may help them decide if this is the time for them or not.

As always, I appreciate your comments. For you seasoned owners, I especially invite you to comment by eMail if you want to pass on your thoughts and advice. I may add an edited section of comments to this new page. Thanks.

First time buyers, don't hesitate to send me a private email if you have a question.



Bob

dcbob@charter.net

Big Numbers in The Budget

I love this video that puts the budget in perspective! Grin and bear it........

The EXPO

There's only one subject possible this week - OUR SPRING EXPO! It has consumed all my "free time". Who knew it would take so much preparation? So, if you haven't decided to join us this coming Sunday, there's still time; do it now! You will enjoy it, I'm sure, and I would love to see you there. Just click below to register.
http://www.eastofthearch.com/pages-request/SpringExpo.aspx

The stock market (and your IRA)

Remember my blog on the mark-to-market accounting rule awhile back? Oh, well. I was one of those believing that a nasty change in accounting rules caused much of the collapse in our finiancial markets (there were and are others who disagee.) Guess we will now see. The accounting rules were changed back early this month, and the stock market should suddenly look better, according to the believers. Above is a chart I borrowed from John Kroot's Newsletter. John is a local brach manager at MetLife Home Loans and below is a link to the full story. Perhaps you should get to know him for mortgage loans. Ok, I'm a little over my head here, but I find the chart pretty interesting. Let's watch how this affects the"recovery."

http://www.mmgweekly.com/w/index.html?SID=ee0c1616bbc82804b2f4b635d4a055fb

Stand By Me

Let's take a little musical break with this video. It's one of my favorite songs and I hope you enjoy it too. I often feel the sentiments expressed in this song at the closing table, watching over my clients as they put the finishing touches on their purchase or sale. Being there for them feels much better than a pay check .......... really!

http://vimeo.com/moogaloop.swf?clip_id=2539741

A Great Time For The First Time

OK, Moms, Dads, neighbors and friends:

It's time to talk to the renters you know. There has never been a time like this for first time buyers. Tax incentives, low interest, low prices and a great inventory. This window won't last forever!

Remember, first time buyers are my favorite clients. If you refer someone you know to me, I'll treat them like family.

Here's a little You-tube Vidio that you can forward to anyone needing your advice.

http://www.youtube.com/watch?v=VGHPf0YmrTI

Doggy School

Sadie and Vegas took Tina and I to Doggy School today. Either one of these babies can drag Tina down the street, but the training has made a world of difference - even after one class! Sadie ,on the left, has been with us a while, and Vegas is a lab puppy who thinks he's the boss. We're learning to think like dogs, and they appreciate it. Now if we could just get the dogs to think like Real Estate agents, I'd have some help in this dog-eat-dog world - ha.

"Vegas, bark if the price is too high! Sadie, whine till they bring down the interest!" Oh well ..............

Mortgage Information Site

Here is an interactive site that provides some new information for mortgage holders:

The U.S. Treasury Department went live on March 19 with its Making Home Affordable program, which aims to help home owners refinance or modify their mortgages.

The campaign includes a Web site at makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673.

The federal government is targeting 9 million home owners whose loans are held by Fannie Mae or Freddie Mac.

Also, interet rates on mortgages dropped belpw 5% this week - check with your lender!

Tired of Real Estate? Let's Go Fly!

Let's take a break from Real Estate and the economy.

Ever wonder what's going on up front in the cockpit of a commercial jet while the passengers are putting their trays in the upright position and looking for their shoes?

Take a ride on the Concorde as the crew slows this beast from twice the speed of sound to a stop at JFK. Have your sound on while the captain invites you to ride along.

Concorde Landing

Has Our Market Turned Yet?

Hear my free monthly recorded market up date at (800) 675-1811, extension 4003.

As Joe Friday used to say "Just the facts, Mame."

Like to Walk???

I stumbled across an interesting site that evaluates a home on it's "walk ability", based on how close or far it is to restaurants and shopping - in short, can you walk to stuff? It is simple to use and the graphics are terrific. Try it, it's fun!

Walk Score

While you are there, our old friend Zillow will give you an estimate on what the property is worth at that address. As I've noted before, Zillow estimates are not all that accurate, but getting better as more data goes into their massive data base. Don't take it to the bank. It is also fun, though - their graphics are awesome! I do note that on most homes in our area, Zillow indicates our prices are seeing a slight recent increase. They appear to be calling the bottom, and we all hope they are right. They also correctly indicate that our local market has been much more stable than Illinois as a whole. Check out your home value, the graphics are pretty, but don't get to excited, high or low, about their estimate of what your home is worth.

Earn A Beer or Cup of Coffee

I just finished a bunch of changes and additions to the new web page (EastOfTheArch.com, of course). More to come, when I have the energy. While it is kind of fun, the Real Estate web page providers sure make it hard to build a site. I'm cross-eyed from using their editor.

OK, here's the deal. For every misspelled word or error you find, I'll buy you a beer or cup of coffee. That goes for everybody except Mary Jo because she is a professional editor, and I could never meet her standards - even if I agreed with them. I try to tell her spelling is an art form - ha.

I hope you get value from some of the many pages I added.

Bob

So What is Happening to our Economy????

I'm reminded of a story where a child was standing next to Einstein, gazing up at the vastness of stars and the universe. "So, what's it all mean?" she asked the father of relativity.

"Beats me!" he replied.

True story or not, that's about how I feel when considering the the news, political and otherwise, about the economy. Is it as bad as they say? I don't think so. Is our area fairing better than what's reported in other areas? I think so.

I will try to keep my clients informed about our local Real Estate market - it's what I do. In the interest of the larger picture, however, let me provide a source I enjoy to keep the big picture in prospective. Below is one of my "must read" blogs every morning. Every once in a while Gerry hits it right on the head. I won't reproduce her stuff because it doesn't seem fair. Even though I seldom will point you to another site, you might enjoy her thoughts as much as I did.

Gerry's Blog

Bob

So You Wanna Get Into Real Estate?

This past week I’ve been taking the continuing education training required to retain my license. I am certainly no stranger to the classroom. I have a bachelors degree from Oklahoma City University, a masters from Xavior University, have taught at the FAA academy, and been an organizational change consultant, spending many hours on both sides of the podium. Given all that, I have been impressed over the years with just how extensive training is in the Real Estate profession, and I’ll share a little of it with you.

Basic training that leads to a State license examination is where we all start. The required course is available in the area, but I took an approved correspondence course that met the requirements to become a Real Estate salesperson. There is a lot of material to learn, but the questions on the State exam are often practical sense once you understand the concepts. With a new license in hand, the real training then starts with the agent’s broker. Most large offices have an internal training program, and there is a lot of one-on-one time with the broker – after all, the broker is responsible for an agent’s performance. This internal training is informal and mixed with a lot of practical experiences.

Additional formal training is also required throughout a Real Estate career. Every license holder, both agents and brokers, must complete a minimum of continuing education to retain their license. Ethics is one of the required courses and then there are electives. I just finished some electives that involved the cultural diversity of the population we serve. You may also see certain designations that have been earned by license holders that have taken additional training beyond the minimum. Ask your Real Estate professional about their training. I am sure they are proud of their achievements, and you may find it interesting.

The professional standards and accountability of Real Estate license holders is pretty impressive. I wish I had time and space to tell you more about it. The State of Illinois is seriously considering raising the standards even higher. It may be that in the future that all license holders in our State must be Brokers, which further increases the education requirements. I personally support this move in this tough economic environment. The business of Real Estate is certainly changing, and consumers deserve the highest level of professional representation.

Speaking of standards, there is a difference between a state licensed agent or broker and a REALTOR. I hope you know that only a license holder in good standing as a member of the National Association of Realtors can call themselves a REALTOR. The big difference for the consumer is that REALTORS voluntarily abide by tough national standards of conduct that define our professional performance. Ask your REALTOR about it!

If you, or anyone you know is considering a career in Real Estate, please contact me to talk about it. I am proud of my profession and would sincerely spend the time to discuss it with them.

And so, back to the work of being "your personal agent."

Bob

Valentines Day

When I was in the first grade, I was run over by a truck while crossing the street on the way to school. My box of little valentines for the other kids scattered all over the street. I was banged up pretty badly , but recovered some 6 months later. I've had a bad attitude towards Valentines day ever since - at least that's my story, in addition to the natural resistance of most males that suffer through this flowers and candy routine - smile.

Actually, life jolted me with a tough and early message. You see, I walked through town that day, in violation of my strict orders to go with the other kids, the back (and safer) way. But I was late - amazing how a first grader can be so head strong! I learned that day to do what you're supposed to do, or you may get hit by a truck!

In the spirit of the day, I hope there's been no trucks in your, or your kids' lives on the way to life's school, and wish you a day full of love and happiness. I still enjoy the little poems, so ------

Roses are red
And violets are blue
Hope the recovery act
Brings joy to you.

I'm off to the store today to buy my sweetie a Valentines Day present, of course, and watching the news to see what Congress has done with the home buyers' tax rebate.

Happy Valentine's Day.

Great Monday!

HOORAY! My new web page is actually up today! (Once again science and technology win over superstition and fear! I love it when complicated stuff like the internet work without me really understanding it.) Please comment to me about my page. I need to start fine tuning it. Thanks!

http://www.eastofthearch.com/

Wow, I'm just amazed at the debates over the Trillion dollar plus recovery bill. Republican or Democrate - this is breathtaking. I will say, as a retired fed manager, turning that much of our tax money loose in one fell swoop is scary. Oh well ......

There is a pretty effective little prevision in there about a $15,000 tax credit for buying a home. We've been lobbying for it, and I hope it stays in the bill because we really need to kick start our home values upwards again. I'll keep tuned for you - you know I will!

Watch this video from California. This story is happening all over the country, but positive stories seldom reach the news.