Erik Armstrong's Blog

Terre Haute Current Listings

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 14:19:26 -0800

Terre Haute Current Listings

For the most accurate and up-to-date listings in Terre Haute please contact me.

Erik Armstrong

Terre Haute Market Report

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 14:18:08 -0800

Terre Haute Market Report

The market in Terre Haute has shown sign of decline sure, but not quite as much as the dooms-day reports are insinuating. According the THAAR (Terre Haute Area Association of REALTORS®) Year end report 2,151 homes were closed in 2007 down 7.92% from 2006. The average list price was down 3.61% which is reflective of the average sales price declining 4.3%. The average days on the market for homes in the area went up from 88 days in 2006 to 98 days in 2007, an increase of 11.36%.

I don't have any numbers to back it up as of right now but as of February the phone call are picking up. Curiosity combined with better weather conditions are bringing out the buyers. I hope that this will be enough to relieve a good portion of the sellers that have been feeling strapped lately.

Pfizer Inc. dropped their inhaled Insulin Exubera, eliminating 660 jobs along with it. Many people are forced to sell, which has some areas over populated with sellers. The problem is that even though these are perfectly good homes and priced to sell, many buyers are nervous about buying a home in an area with so many homes on the market.

**The facts and figures represented in this article are based off an the Terre Haute Area Association of REALTORS® and are intended to reflect the market condition of this market only. For facts and figures for your market please consult with a REALTOR® who specializes in your market.

Terre Haute News and Events

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 14:16:33 -0800

Terre Haute News and Events

For the most up to date information on news and events please go to http://www.terrehaute.com/ (the official site for Terre Haute) Here you will be able to view up coming events and plan a fun weekend. For any questions please contact me.

Erik Armstrong

Vigo County Current Listings

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 13:51:18 -0800

Vigo County Current Listings

For the most accurate and up-to-date listings in Vigo County please contact me.

Erik Armstrong

Vigo County News and Events

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 13:48:50 -0800

Vigo County News and Events

For the most up to date information on news and events please go to www.terrehaute.com (the official site for Terre Haute) Here you will be able to view up coming events and plan a fun weekend. For any questions please contact me.

Erik Armstrong

Vigo County Market Report

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 13:26:19 -0800

Vigo County Market Report

The market in Vigo County has shown sign of decline sure, but not quite as much as the dooms-day reports are insinuating. According the THAAR (Terre Haute Area Association of REALTORS®) Year end report 2,151 homes were closed in 2007 down 7.92% from 2006. The average list price was down 3.61% which is reflective of the average sales price declining 4.3%. The average days on the market for homes in the area went up from 88 days in 2006 to 98 days in 2007, an increase of 11.36%.

About Vigo County

Erik Armstrong (Century 21 Advantage) — Tue, 04 Mar 2008 12:26:38 -0800

About Vigo County

Vigo is pronounced Vee-go because of it's French origins however many locals pronounce it with a strong I instead. Vigo County was organized in 1818 and named for Francis Vigo. Francis Vigo was an Italian American who aided American forces during the Revolutionary War. Francis also helped found Vincennes University in Vincennes, Indiana. Francis Vigo lived 1747-1836.

This monument pays tribute to his importance in our community and resides at Vincennes University.

Vigo County's courthouse resides in Terre Haute, which is also the county's largest city. The courthouse was dedicated on June 7^th, 1888. It took over $400,000 and four years to complete but the results speak for themselves. The architect was Samuel Hannaford, and the builder was Terre Haute Stone Co.. The courthouse is located on the Northeast corner of US Hwy 41 and Ohio.

The Market

Erik Armstrong (Century 21 Advantage) — Thu, 28 Feb 2008 14:29:01 -0800

The Market

How do you explain "The Market"? When you sit down with a couple at their kitchen table, and they are looking back at you with hope in their eyes. They are waiting for that "HGTV moment"...they are waiting for you to tell them that their house is worth so much more than they paid for it only a few short years ago. But what if it's not? What if your CMA report says it's worth far less than they hoped? Does the average consumer know what the market is and how it affects their home's value?

If you are a real estate professional you might find this blog a little boring. But if you are a person who has ever heard "the market is doing this", and wondered what the heck "the market" is, I hope you will find this an interesting read.

The market is a localized entity comprised of four important factors. The four factors that make up what real estate people call "the market" are employment rates, interest rates, income rates, and home inventory.

Employment Rates:

Some areas of the nation have high rates of employment and others have lower rates of employment. The more people have jobs in a given area the more homebuyers are available and therefore the prices of homes may be higher. However when employment rates are not favorable there are fewer people that can buy a home and therefore home prices come down in order to compensate that factor.

Interest rates:

This one is probably the most confusing of the four. Basically, the Federal Reserve dictates the interest rate that banks borrow money at and therefore the banks dictate the rate that we are charged on a loan. Why should you care about this? Because when interest rates are low you can afford more house than when they are high. For example lets look at a $100,000 house on a 30 fixed rate mortgage. If the interest rate is 5.75% your monthly principal and interest rate payment would be about $583.57 but if the interest rate was 6.75% your monthly principal and interest payment would be $648.60. That means that for the same house you will be paying $60 a month more. In other words if you buy a house when interest rates are low you will be able to afford to get a little more home than when they are higher.

Income rates:

In some areas of the nation income rates are higher than in others. So a nurse might make one salary if they worked in one town and a very different salary if they worked in another. The income rates of the people in the area have a lot to do with the housing prices. My market is a perfect example. For $350,000 you can get in the best neighborhoods, with swimming pools, 4 to 5 bedrooms, finished basements, granite counter tops, the works, but if you went to New York City or LA you might get a 1 bedroom studio apartment. So if the income levels in your area drop so can the home values.

Home inventory:

This is the part of the market that you will hear agents refer to as "it's a buyer's market", or "it's a seller's market". When there are more homes for sale than people buying houses it's called a "buyer's market because buyers have the upper-hand. With more houses to choose from buyers can be more selective and sellers might have to compensate for that factor if they want to sell. Now when there are more people that want houses than there are people selling their homes it's called a "Seller's market" because sellers have the upper hand. With more people buying houses their house is in more demand and therefore they can ask more for their hot commodity.

These are the factors that real estate professionals refer to as "the market". They don't account for how much you love your home, how much you owe on you mortgage, how quickly you need to move, or any of the emotions tied to your home. They are emotionless and they change lives. This is also why it is important to consult with a REALTOR before deciding how much you want to sell your home for; over-pricing is the number one reason that houses sit on the market.

I hope this blog was informative and clears up any questions you might have about "the market". Please check back and see my future blogs. I will try to write a new blog each week so come back soon.

Good Real Estate Joke

Erik Armstrong (Century 21 Advantage) — Sat, 16 Feb 2008 19:12:16 -0800

I was at a award ceremony the other day and heard a good one.

The speaker was telling about a mishap that happened to him earlier in his career. He had just helped a lady buy a new home and decided he wanted to send her flowers. He called up the florist and told him what he would like. A few days later he gets a call from the lady. She was not happy at all.

"Is this some kind of sick joke?"

"What do you mean?", he replies.

The card says, "Rest in Peace."

"Oh Dear, Let me find out what's going on."

The man calls the florist telling him about his upset client. The florist looks in the computer.

"Oh my god, can you imagine how upset these people are going to be at their father's funeral when they read the card, "Congratulations on your new home"!

Haven’t you heard…The Sky is Falling.

Erik Armstrong (Century 21 Advantage) — Fri, 15 Feb 2008 15:34:39 -0800

Every time I turn on the news the media is boasting about how bad the real estate market is. They give a sermon of how the end is near, they paint the picture of dooms-day, and have everyone up in arms that we are heading into the next great depression.

I can't mention what I do without someone saying, "Yeah it's a bad time for real estate."

Here in Vigo County Indiana we're only down 7.92%* in homes closed. Sale prices of homes are only down 4.37%*. So why do we hear from the media that Nationwide the real estate market is down almost 30%? Where did these numbers come from? Why do we hear about the thousands of real estate agents that are leaving the business? Thousands of real estate agents are always leaving the business. They dip there toes in the business thinking they will get rich and start to see how much work is involved. This line of work is not for everyone; it takes a certain passion. Why do we hear about new construction has come to a halt? I can drive you around town right now and show you some fine examples of new construction.

The truth is that there are areas in our country where the real estate market is looking very bleak but keep in mind that this is a market just like any other. It operates on a pendulum swing. For the last five years it's been to the right. Sellers have been making profits and buyers have been paying. Sellers have been spoiled by the market for the last five years. They have a sense that their house is worth $20,000 more than when they bought it two years ago without any major improvements.

Many sellers are finding that if they sold now they may or may not be able to break even. Sellers in this market need some extra attention in education. Show them how over pricing will cost them more from their bottom line, show them how lowering the price later affects the public perspective of a house, make charts and graphs if you have to, but get them the education so they will feel good about pricing their house appropriately.

Buyers are apprehensive to make a move. Many people are under the impression that it's a "bad time for real estate". Please!, I'm only twenty-eight years old so I don't have to tell you what I was doing in the 80's but I do know how to research my career. The early 80's where a "bad times for real estate". Buyers don't know how easy they have it. In the early 80's interest rates where as high as 19-21%! Today they want to sit back and see if they will fall anymore even with interest rates barley beating out inflation? Don't risk it. Interest rate could quickly climb and then hindsight will be 20/20.

As of today February 15^th as I write this blog the interest rate is 5.75%. Buyers need an education as well. Show them how that effects the house payment and show them how if they buy now they will be able to afford more house then if they wait it out. A large part of what we do is education. Keep in mind that they are hearing more about the real estate market from Chicken Little then they are from you. Change that, and change your business.

*Figures are only representative of Vigo County in accordance to Terre Haute Area Association of Realtors 2007 Year End Market Analysis and do not necessarily reflect the figures to your given area. Contact a local REALTOR for statistical information for your own county.