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Looking ahead to 2008

Bill White Sr. & Jr. (RE/MAX of Naperville) — Thu, 03 Jan 2008 11:31:23 -0600

January 3, 2008

By Bill White, Jr.

This morning I came across a quote in an email:

"We spend January 1 walking through our lives, room by room, drawing up a list of work to be done, cracks to be patched. Maybe this year, to balance the list, we ought to walk through the rooms of our lives... not looking for flaws, but for potential" - Ellen Goodman, Pulitzer Prize-Winning Columnist

As the Real Estate market continues to stabilize, this quote rings true as we hit the ground running in our industry in 2008. While the national media delivered the marketplace a steady barrage of negative spin (despite the likelihood of 2007 being in the books as the fifth best year on record per the National Association of Realtors), there is reason for optimism in 2008. As the end of 2007 market statistics were recently delivered (and will continue to be in the next month), existing home sales rose in November, giving reason to believe the market is stabilizing.

"The National Association of Realtors trade group said total existing-home sales -- including single-family residences, town homes and condos -- rose 0.4 percent, to an annualized rate of 5.00 million. That's an improvement over October's 4.98 million rate and came as a surprise to experts who had been expecting November to show a decline to 4.97 million." (Miller, Chicago Tribune, 1/1/08) "'Near term, existing-home sales should continue to hover in a narrow range, just as they have since September,' said Lawrence Yun, the Realtor group's chief economist. 'That's good news, because it'll be a further sign that the housing market is stabilizing.'" (Miller, Chicago Tribune, 1/1/08)

One major reason for optimism in 2008 is a return to normalcy in the mortgage world. In December of 2007 President Bush signed the Mortgage Cancellation Tax Relief Act. Additionally there are strides being made through FHA reform to make affordable financing available to prospective buyers. Mortgage rates remain low, giving the housing market additional opportunity to improve at a quicker rate. The job gains locally and nationally suggest imminent sales and home price strengthening.

Locally, the Illinois Association of Realtors is forecasting the 2008 expectations based on a newly-developed home price forecasting model developed by economists at the University of Illinois. Combining data used by Multiple Listing Service (MLS) sales (gleaned from 35 participating Illinois MLS boards and associations) this model "took about a year to develop an accurate forecast that uses an augmented distributed lag model as the framework to relate house pricing and the economic business cycle." (IAR Magazine, Ann Londrigan, 1/2008)

Expectations, obviously without the benefit of a crystal ball, anticipate 2008 as steady and healthy.

"People have been sitting on the sidelines due to the press telling everyone that the sky is falling," says Michael Golden, Chicago Realtor Association President. "Since the sky has not fallen, I expect to see some recovery in early 2008."

Chicago and the neighboring Chicagoland area benefits from steady job growth, its ability to attract new businesses & opportunity and the fact it has international appeal - all factors that affect the local housing market.

"Homes in Chicago are still appreciating steadily versus other markets which have seen steep depreciation of home values," says Golden. "Money Magazine named Chicago among the most attractive cities for empty-nesters and seniors to move to... The international appeal of such developments as The Chicago Spire help continue to drive Chicago's housing market. As a contender for the 2016 Olympic bid, Chicago will continue to flourish as a world-class city."

As we enter this new year it is worthwhile to look for the potential that lies ahead.

Change is good, isn't it?

Bill White Sr. & Jr. (RE/MAX of Naperville) — Wed, 07 Nov 2007 17:10:02 -0600

After spending 20 years in one real estate office, Bill Sr. has taken the plunge to move locations. Still remaining under the RE/MAX umbrella, this move was necessary to enable Bill Jr. the ability to grow and work this business on a higher level. However difficult the emotional move has been, not to mention the physical, the positive reception at our new location has eased the challenge. We are grateful for the professional and kind words received from all of our colleagues and look forward to continuing working hard for everyone. Experience, the Difference. Next challenge, undoing the media hype and positively promoting our business in a realistic market.

"Home sales plunge 8%" - What does that really mean?

Bill White Sr. & Jr. (RE/MAX of Naperville) — Thu, 25 Oct 2007 08:47:27 -0500

"Home sales plunge 8%" - What does that really mean?

Written by Bill White, Sr. and Jr. and cited where appropriate

If you were surfing the web today or picked up a newspaper you likely stumbled upon the latest statistical report released on the September 2007 housing market. The headlines read "Home sales plunge" and "September housing sales tumble." Note the verbiage - plunge, tumble, deepen, plummet. The scarier the word the stronger the effect, right? These articles ignore what we consider to be the single most important rule in our industry - Real Estate is LOCAL! Someone reading in Chicagoland may assume that the sky is falling by reading a few headlines on national web sites or newspapers. Importantly as well, the media does not take the time to explain that the monthly housing market reports reflect what has already occured in the marketplace, not what is projected from this day forward.

Consider:

“Housing figures for September and October look to be weak and they will reflect the lingering impact of the August credit crunch. However, the recovery is underway. The economy is fundamentally sound. The unemployment rate is low at 5 percent. Job gains continue. 2008 will be better than 2007.” (NAR Real Estate Insights, 10/10/07)

As seems the norm, the national media sells you the bad but buries the lead - the Fed is due to take action.

"All U.S. interest rates have broken lower. The mortgage-defining 10-year T-note is trading at 4.4 percent, down from 4.7 percent last week, but mortgages will be slow to follow. Even agency loans are stuck in credit fear, but are likely to approach 6 percent soon. Fed-defining short-term rates have dived almost a half-percent, a sure sign of renewed credit panic. A Fed cut on Halloween, doubtful on Monday, is now a sure thing." (Inman News, Lou Barnes, 10/19/07)

It's not as interesting to look at the macro versus the micro, from a news perspective. Our society is very much focused on the now and part of that is driven by the media. Real Estate remains as solid an investment as one can make, provided you seek out proper advice and expertise by trustworthy and experienced professionals who are daily involved and aware of local market conditions - REALTORS.

“Consumers and homeowners who are in it for the long-term are once again showing to come out well ahead. Because of the power of leveraging, a $10,000 downpayment on a typically price home in the U.S. at a typical home price appreciation of 5 percent will return $110,000 after 10 years. The same $10,000 invested in the stock market appreciating at 10 percent annual increases will result in $23,600.” (NAR Real Estate Insights, 10/10/07)

Please check back soon for updated statistics and analysis of what is
going on in our local Real Estate market

For the first time in history, 53% of women are single-US Census Bureau

Bill White Sr. & Jr. (RE/MAX of Naperville) — Thu, 28 Jun 2007 09:43:58 -0500

We just ran in to this statistic in an ad placed in a Charleston, SC newspaper. And it struck us that we may need to re-evaluate how we market ourselves! In addition, we will need to streamline our house hunting process with these buyers as chances are they are working harder leaving less time to spend looking for a home. It is also important to note that there are more single women than married women~and they are buying more homes than single men. Interesting stats!

As a parent of a college student...

Bill White Sr. & Jr. (RE/MAX of Naperville) — Tue, 17 Apr 2007 14:35:59 -0500

It breaks my heart to read, view and imagine the anguish families and friends of the Virginia Tech tragedy are undergoing. My daughter/Bill's youngest sister is in grad school at the University of South Carolina. She also did her undergrad there as well. Given the distance from Naperville, IL we continually worry about her...although it really wouldn't matter where our children go to school...we still worry. Tragedies of this magnitude are so hard to fathom, especially from afar, but relating as a parent is real. May the Virginia Tech community stay strong and know that there are many of us worldwide who care.

April Elections

Bill White Sr. & Jr. (RE/MAX of Naperville) — Mon, 16 Apr 2007 10:30:07 -0500

April elections in our area are typically represented by a low turnout of voters. When you think about it, this election is one of the more important ones to support as this is when we have the chance to pick the right people that make decisions that affect our property tax bills! What may equate to approximately 25% of our community will go to the polls tomorrow to vote on the people who make policy decisions totalling millions of dollars.

Here in Naperville we have a mayoral race, an interesting school board race in both of our school districts and members vying for position on our park district board. There are other area elections as well but these 3 have proven to be the most entertaining and most critical when we reach for our wallets.

We encourage everyone to not ignore our right to vote in April! Good luck to all and thank you to those who have accepted the challenge.

Networking sites the new pen pal?

Bill White Sr. & Jr. (RE/MAX of Naperville) — Sun, 01 Apr 2007 11:18:42 -0500

Just a random thought! Remember in grade school (showing my age now) when teachers were trying to instill the art of letter writing? Part of those lessons often offered the opportunity to exchange addresses with someone either out of state or even out of the country. If you were lucky, your pen pal wrote back! Often times, these letters remained strictly the introductory type with no further interest. But sometimes, you actually built up a relationship with someone from a different area with different interests.

So, along those lines, is that what we are doing on these network sites? Unfortunately, many of us (me included) try to establish ourselves online but "life" gets in the way and "traditional" (2007 version) communication resumes...cell phone, email, text messaging. Short and sweet. But as a result, I kind of miss the art of letter writing. The ability to put down thoughts, feelings, interests and the hope that someone else responds! Hmmmm.....I think I just answered my own question. Yes, these networking sites are the new pen pal!

Wake up every day with this...

Bill White Sr. & Jr. (RE/MAX of Naperville) — Fri, 30 Mar 2007 11:32:07 -0500

Hey, it's Lent and Passion is a word associated with this time of year. But quite frankly, passion should be a part of everyone's daily life.

One of several definitions of the word:Passionate devotion to or interest in a cause or subject, for example: ardor, enthusiasm, fervor, fire, zeal, zealousness. (http://www.answers.com/passion&r=67)

Teachers should have a passion for educating. (Thanks Maggie for having this)

Athletes should have a passion for competing. (Thanks Bridget for having this)

Parents should have a passion for instilling integrity, honesty and "the golden rule". (Thanks Ree for having this)

And Realtors should have a passion for their job whether it is a conversation, a web site, a listing presentation or an email. Treat every client with enthusiasm, fervor & zeal. Whether a 23 year veteran or a 3 year rookie...find that passion! (Thanks Bill Sr. & Jr. for having this)

Happy Easter by the way.

Local Naperville Politics

Bill White Sr. & Jr. (RE/MAX of Naperville) — Wed, 28 Mar 2007 12:08:23 -0500

Naperville has always been a hotbed of active residents interested in keeping our community on the cutting edge. That is one of the reasons why so many people look to our town as a potential home. We are currently in political season with some very important elections ahead.

Mayoral Candidates...

Our current Mayor Pradel actually has a running mate this time around. Doug Krause, a Naperville Realtor & Naperville councilman has gotten past the primary and is up against "Officer Friendly". Actually, against is probably too negative of a word. These are two committed residents who both have terrific insight on how our community works, understand its past, and are determined to continue maintaining Naperville's reputation and growth in the future.

Keep informed and don't forget to vote!

Supporting your community

Bill White Sr. & Jr. (RE/MAX of Naperville) — Mon, 06 Nov 2006 10:13:22 -0600

As we are all economically benefitting through our communities via our transactions in real estate, it is important to give back as well. In our area, there are many venues to give. Some are big headliner events to raise money that is then disbursed by a volunteer organization such as the Jaycees, United Way or the Exchange Club. Others are via food pantries, shelters, etc.

Because we have lived in DuPage County our entire lives, we have our special interest groups that we like to quietly support. We tend to do this "behind the scenes" and don't necessarily publicize where we spend our time and money.

Do you find it in your best interest to "publicize" where your volunteer time and dollars are spent?