It is time to check your air conditioning cooling fins. Mine get clogged with all the little white floaties. Cottonwood seeds. The air flow will be much improved with a quick spray wash from your garden hose. On the upcoming hot summer daysÂ you will want to make sure you get all the air flow you can over the air conditioning coils.
Soon the Fed assistance on first time and second time buyers will end. Contracts need to be entered into by April 30th, and closed by June 30, 2010. If interest rates rise due to the fed not buying mortgage backed securites this couldÂ create a double whammy. Certainly every one hears from the spin doctors that there are more contracts being entered into, but the downfall is thatÂ sales prices are still seriously declining. Another unknownÂ fact is there are still a huge number of properties that have not hit the market as foreclosures yet. Why? the owners took the properties to bankruptcy court and halted all foreclosure processes. Most of the builders opted for that route. Take note in Naperville, Glen Ellyn, Lisle, and Wheaton in the first 4 months of the year 433 Single Family homes have closed, and 209 Townhomes, total of 642 units in four towns. Currently there are 1,122 units in the same towns going to foreclosure, or another 7 months of supply. In Will county the Sheriffs sales are clipping along at 180 per week! When I meet with prospective sellers of their homes I get a clear indication that the secret is still in the bag. Not many people have any indication of how bad it is in the residential real estate market, or how bad it might get.
Well another year has past. Many farmers I have had contact with in the past now realize what I said was true. In 2005 I said sell now, or hold your cards for another 10 years. When Greenspan raised rates I told many builders to build homes that first time buyers could afford! Well here we are 2010. You might have noticed that the inventory levels fell going into this new year. From 15-17 months to 5-6 months inventory. Well prediction is... more foreclosures, more inventory... lower home prices. Sure you will hear of increased sales year over year. LOOK at the numbers. Lower prices of 10% or more! My Broker says... good news Million dollar homes are selling!!! I Oh My!, sure, but wait a minute isn't that the 1.5 million dollar home that just sold for 1.2 million??? LOOK AT THE NUMBERS. We have a phantom inventory of homes waiting to crush the market. Reality is tough to meet head on, but it is coming to hit you right in the face. Prepare...
You may wonder why you feel like a hostage in the home buying process. Especially if you are chasing short sales, or foreclosures. I have found that banks are holding open auctions on the multiple listing service. Typically if I call on any of a number of short sales, or bank owned properties, the listing agent has multiple offers on the property. Some buyers offers are not even being countered or considered, while the listing agent continues to take more offers. What can you do? Well start by not putting in offers on properties that already have offers submitted. Stop chasing your tail, and deals that will never materialize. Many well priced homes in great condition are available as resales. If you are a first time buyer, the window is closing on your first time buyer credit. Stop being held hostage by the same banks that started this mess!!!