naperville real estate: Seeing Some Market Changes - 04/03/08 03:40 AM
The nice thing about keeping a paper record of my Naperville market stats is that I can spot trends quickly.
Here's an example:
January 14, 2008 we had 581 Four bedroom homes on the market for an average price of $725,817 with a market time of 239 days. And, yes, January is usually a slow month in our selling cycle. Too much snow (especially this winter) and too much cold!
April 3, 2008 we have 774 Four bedroom homes on the market for an average price of $686,130 with a market time of 196 days.
My take-away. Prices have come down! $39,000 by these figures. … (2 comments)

naperville real estate: Naperville's Single Family Stats for March, 2008 - 03/26/08 10:51 AM
From the Case-Shiller monthly report we now know that prices are down nationwide (19 out of the top 20 metropolitan areas) and inventory is up. And, we've yet to hit bottom. So, our Spring market may not have much spring in it.
Currently we see the following market statistics:
ACTIVE NAPERVILLE
SINGLE FAMILY LISTINGS                                                               
        Bedrooms     #Active     Avg LP        Avg Market Time                             
|---- ---- --------  ------- ----------- ----------                           
|        ALL             1179         687,123    197 DAYS                        
|          2                  23        378,084     179 DAYS                          
|          3                252        386,304     151 DAYS                          
|          4                749        691,067     203 DAYS                         
|          5 +             155      1,202,996    249 DAYS
 
And, only 47% of these active listings have sold in the past … (0 comments)

naperville real estate: Chicago Area FHA limit increased to $410,000 - 03/08/08 02:33 PM
OK...we have a temporary limit increase till the end of December, 2008. And, hopefully, they (the government) will make this increase permanent.
In Naperville, the majority of the single family homes are over $400,000. And, we used conventional mortgages because FHA didn't go up high enough. And, truthfully, they still don't. But that's another rant.
Right now, first-time buyers who have a small down payment, generally 3%, will be able to purchase a condo, townhouse or small single family in the Chicago area. For example: a $200,000 property will require $6000 as down payment...and additional savings. FHA likes to see some money in … (0 comments)

naperville real estate: So long, farewell...Countrywide's on its last legs - 03/08/08 02:22 PM
Countrywide, a California lender, which did lots of business in the Chicago area is being investigated by Lisa Madigan, our Illinois Attorney General. She has asked them to provide her with files of Chicago closings from the past few years. She believes that there is evidence of fraud...and redlining.
And today the Wall Street Journal reported that the FBI in New York, with oversight from Washington, is also looking into "widespread fraud" in the way Countrywide originated mortgages.
And, they are being investigated by the Securities and Exchange Commission for possibly improper accounting.
If this were baseball, I'd say three strikes and you're out. … (3 comments)

naperville real estate: Upping Fannie and Freddie's Investment Limits - 02/27/08 03:34 AM
Hot off the AP wire this morning:
The federal regulator for Fannie Mae and Freddie Mac said Wednesday it would lift restrictions later this week on the amount of mortgages the government-sponsored companies can hold on their books.  
The Office of Federal Housing Enterprise Oversight, acting after Fannie Mae published audited financial results for 2007 on Wednesday morning, (which showed a BIG loss) said the two companies' mortgage investment limits, currently at around a combined $1.5 billion, would be lifted effective Saturday, March 1, 2008.
The caps were imposed in 2006 in response to the companies' multibillion-dollar accounting lapses, thereby limiting … (1 comments)

naperville real estate: More bad news for Chicago Metro real estate - 02/25/08 01:40 PM
According to the Illinois Association of REALTORS, Chicago-Metro area home sales took their worst one-month plunge since at least 1998. The trade group said on Monday that January sales of both single-family homes and condos were off 34 percent, compared to the same month in 2007.
  
Thirty-four percent? That's over a third of the market, which leaves 66 percent of all properties on the market unsold. Ouch!
  
And, here's one reason why according to the Chicago Tribune:
 
"She, (the seller) too, blames January weather for dampening buyer enthusiasm. But she says she isn't in any particular hurry, and says she's sticking close to that … (1 comments)

naperville real estate: Naperville's Single Family Stats for February, 2008 - 02/25/08 01:48 AM
To paraphrase Tolstoy's opening sentence in Anna Karenina:
 
Happy real estate markets are all alike; every unhappy real estate market is unhappy in its own way.
 
Currently we see the following market statistics:
 
ACTIVE NAPERVILLE
SINGLE FAMILY LISTINGS                                                               
                                                                            
| Bedrooms     #Active  Avg LP   Avg MT                             
|---- ---- --------  ------- ----------- ----------                           
|        ALL           1035         717,751   221 DAYS                        
|          2                  21        388,721   161 DAYS                          
|          3                210        391,757   167 DAYS                          
|          4                 652       712,094   230 DAYS                         
|          5 +             152     1,237,860   264 DAYS
 
And, only 49% of these listings have sold in the past six months.
 
And, so, we have an unhappy market with extended days on market; increases … (0 comments)

naperville real estate: Illinois Deed Provider - 02/24/08 09:26 AM
It must be Springtime.
Illinois Deed Provider is again sending out their "official" letter offering to get your deed certified.
Save your money! In Illinois, you need a certified deed only in rare cases. And, in 30 plus years of selling real estate, I've never seen a certified deed.
So, rather than spend $59 to $89 (guess they've raised their costs) donate the money to a local charity and take the tax deduction.
And, oh, in case you're in another state and get a solictation from National Deed Providers or (Your State) Deed Providers...it's the same company. Just google their name and read what some of … (3 comments)

naperville real estate: Naperville school district 204 and its new third high school: Metea - 02/23/08 06:07 AM
After several wasted years of trying to get a new high school buit on land at the corner of 75th Street and Route 59, school district 204 has chosen to buy land abutting Eola Road on the far north.
As a result there are new boundaries being hotly debated. According to a map in a recent Naperville Sun, several far south areas (Tall Grass and Ashwood Falls) will be going to Waubonsie High School. But, Ashwood Creek which is south of 111th will go to Neuqua Valley High School.
I remember in 2006 showing homes in Ashwood Creek and the buyer ultimately decided … (1 comments)

naperville real estate: Oh NO! Not another mini reduction! - 02/23/08 05:14 AM
Do you  remember I showed a previous mini-reduction email about two months ago?
Well, this morning's email brought me another amazing mini-reduction.
Eileen, You showed my listing at xxxx Lane, Plainfield on 8/9/2006.I have recently reduced the price on this listing from $549,000 to $548,500 and thought you may want to bring your buyers back for another look.
If I remember correctly one of the earlier reductions was from $550,000 to $549,900. A mini-mini reduction!
So, let's analyze this missive.
#1, I showed the property almost 18 months ago! Those buyers have been in their "new" home for 15 months.
#2, the property was overpriced then, and … (2 comments)

naperville real estate: Conditional Commissions - 02/21/08 02:33 AM
If you saw a listing that limited your commission by specifically requiring you to:
1) show the property
2) attend the inspection
3) attend the final walk-thru
4) attend the closing
What would you make of this?
Our MLS of Northern Illinois has concluded that this violates NAR rules (which it does) and have posted the following this morning:
Are you marketing your cooperative compensation correctly? In accordance with a recent legal opinion by General Counsel of the National Association of Realtors "if brokers are entering listings in which compensation is conditioned on activities other than procuring cause..." it is in violation of Section 5 of the National … (11 comments)

naperville real estate: Snow and Pot holes, Oh My! - 02/12/08 08:13 AM

Snow falling softly...and more snow and yet more snow! So far, February has been one of the snowiest and greyish on record. According to one of our local weather people, we've had only 11 minutes of sun this month! There's been snow almost every day and there was so much that Ms. Groundhog couldn't even come out of her burrow.
And, our temperatures have ranged from 49 above to 5 below...all in the same day.
And as beautiful as the picture above, underneath that snow lies dangerous pot holes. Some large enough to swallow your tire. According to the Naperville Sun today (which … (0 comments)

naperville real estate: MGIC, restricts underwriting areas effective March 3, 2008 - 02/11/08 12:36 AM
Here's a memo, from the Mortgage Guaranty Insurance Company, 
February 6, 2008 Dear Valued Customer:
As a result of our ongoing evaluation of market conditions and loan performance, we are making a number of changes to our base underwriting guidelines and have created a new set of guidelines for areas exhibiting market weaknesses. The following underwriting guideline changes are effective for mortgage insurance applications received by MGIC on or after March 3, 2008.
(Then it goes on to break down underwriting guidelines. FICO is very important...and it better be above 660! And if the appraiser says that the property … (5 comments)

naperville real estate: Re-financing Caution - 01/28/08 04:46 AM
With mortgage rates down (in our area around 5.5%) folks with adjustable mortgages will try to refinance. Especially if they expect their rate to re-adjust up.
However, here's a warning. If you have your house on the market for sale, you probably will not be able to refinance.  If you had your house on the market in 2007 you'll probably need to wait 3 to 12 months to get a new mortgage.
Why? Because lenders who do a refi and then have that loan sold within a short period of time don't make any money. And, we know that lenders and banks do … (2 comments)

naperville real estate: Comparison of Naperville's Stats of January 2007 and January 2008 - 01/25/08 10:42 AM
 
 
 
 
Interesting playing around with year over year stats. Almost the same number of homes are on the market.
But, notice that the market time has increased. The active listings for 4 bedroom homes have been on the market for approximately 8 months. No wonder, I've been showing so many vacant properties!
And, average prices have also decreased in the 3 and 4 bedroom category. Yet, in the more expensive 5 bedroom homes, the price actually increased. I suspect that there are several reasons for this: 1) buyers in this price range are doing custom designs and upgrading and 2) they can afford … (0 comments)

naperville real estate: FHA RAISES THEIR LIMIT TO $725,000 - 01/24/08 06:23 AM
As part of the congressional rebate program to stimulate the economy, FHA will now insure mortgage loans up to $725,000. However, I'm betting that amount will only be good in limited markets such as New York City, Chicago Metro area, San Francisco, San Diego and possibly Miami.
Our Naperville area had/has conventional limits of $417,000. Anything higher than that is considered a jumbo loan with higher rates. Those rates have been as high as 1% over the conventional rate in the past six months.
What will this accomplish? It will probably help those buyers who are looking to buy property under $650,000. It … (2 comments)

naperville real estate: Naperville School District #204 contemplates 3rd High School - 01/23/08 02:44 AM
The school district has chosen a less expensive location for its third high school to be called Metea Valley.
The land is on the east side of Eola Road, north of North Aurora Road and just south of the Illinois Prairie Path. Originally, they were going to build the third high school at the corner of Route 59 and 75th street. That proved to be too expensive and after several months of determining the cost of that location, they district looked at other locations.
This new location is farther north and west than the original location. They expect the school to open by … (1 comments)

naperville real estate: If I were a Rich Man.... - 01/18/08 01:37 AM
You remember the song? "If I were a rich man" from Fiddler on the Roof.
Well, in today's real estate market, here's what I'd do.
Let's suppose that I had a million dollars (remember this is my fairy tale). I'd go out looking to buy four Naperville homes whose value would range between $400,000 and $600,000. I'd negotiate very carefully and try to buy these properties way below their listed price. Maybe 75% or 80% of their value. I might have to write 10 offers to get one together. And, I'd put down 50% of the price paid for a fixed 30 year … (7 comments)

naperville real estate: How the real estate mess affects the economy - 01/17/08 03:00 AM
According the Beige Book reports, all sectors of the economy are seeing the effects of the housing slump. In fact, the "R" word is now being tossed about. And, in the housing market, it's the "d" word. (If you don't know to what I'm referring, here's the answers: Recession and Depression.)
We have builders going under. Yesterday's Chicago Tribune reported that Kimball Hill's auditor said that they didn't have enough funds to continue operation. And, who would lend them money in this environment?
We have announcements from banks and lenders that they're "releasing" hundreds of employees. We have title companies consolidating. We have … (4 comments)

naperville real estate: Harmony Grove and Ashwood Creek and Ashwood Park Prices - 01/15/08 11:51 PM
I was out showing homes in Naperville school district #204 before my vacation and I had the distinct impression that prices were lower. So, this morning I did some research which backs up my "feeling."
Harmony Grove 2006 Closed Sales
27 homes closed
$420,000 to $575,000 sales price
Average Price: $483,000
Harmony Grove 2007 Closed Sales
17 homes closed
$424,000 to $621,000 sales price
Average Price: $471,000
Hmmmmmmm...fewer sales and lower average prices. Also, noticed more vacant listings and higher buyer agent's commissions.
Ashwood Creek/Ashwood Park 2006 Closed Sales
18 homes closed
$599,000 to $1,068,000
Average Price: $811,247
Ashwood Creek/Ashwood Park 2007 Closed Sales
27 homes closed
$453,000 to $1,060,000
Average Price: $730,340
The Ashwoods are newly developed sub-divisions … (1 comments)

 

Eileen Landau

ABR, CRS, e-PRO

Naperville, IL

More about me…

BAIRD & WARNER, NAPERVILLE

Address: Serving Naperville Illinois

Office: (630) 778-1855

Mobile: (630) 297-7550

An assortment of odds and ends that may or may not pertain to the greatest city in the Midwest: Naperville. Also some commentary on the Naperville real estate market.


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