Home Buying in 60177>Question Details

Anne Traynor, Other/Just Looking in Bartlett, IL

Since the beginning of Septemberhave more first time buyers started the housing search so that they can qualify for the $8000 credit before it expires

Asked by Anne Traynor, Bartlett, IL Sun Sep 13, 2009

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4
Laura Karambelas’ answer
I have been working with more 1st time buyers in the past 1 1/2 months compared to the 1st 6 months of this year. Some of them wanted to wait until the Spring but have chose to look for homes now so that they can close by November 30th.

I work in the Downers Grove market and more than half of our sales have been under $350,000 in the past month.

I hope this helps!
0 votes Thank Flag Link Fri Sep 18, 2009
Hi Anne,
I think so. We have noticed an increase in activity in our Keller Williams Fox Valley office in Saint Charles, Illinois especially in the under $200,000 price range which would be considered "entry level."

A quick snapshot of the numbers in the MLS also supports this:

For Kane County, Illinois:

Detached Housing Units:

There are 4424 active units currently available and 730 of these are pending or contingent. This is 16.5% of the market that is currently under contract giving us an absorption rate of 6 months. This is extremely low compared to what the absorption rates have been through most of this market...usually well over 12 months.
I figured the rate of absorption based on contingent and pending units because I thought that is best reflective of the tax credit influence and best answers your question. Usually absorption rates are based on closed sales from the previous month(s).

Attached Housing Units:

There are 1416 attached units available in Kane County and 223 of these are contingent & pending. This is 15.7% of the market that is under contract giving us an absorption rate of 6.3 months of inventory. Again well below what we have been seeing in this market.

Absorption rates are important market indicators for Realtors and are figured out by taking the current inventory levels divided by the rates of sales for the previous month(s) or other time period. This helps in determing pricing, expected marketing times, etc.
Remembering our supply and demand basics of Economics 101 we know we have to reduce the supply in order for the prices to stop going down. It appears that the tax credit is helping reduce the market inventory.

Is congress going to extend the tax credit? We don't know this quite yet. But my advice is if you are able to purchase your first home now you should take advantage of the favorable interest rates, the great housing values and $8,000 of tax credit money.

You can find out more about the tax credit from my blog where I have posted a short video inaddition to other Real Estate News and Information in the Fox Valley, Illinois at:

http://cindystrahota.featuredblog.com/?feed=rss2

I would love to help you find a great value in the Kane County area.

Happy House Hunting!

Cindy
Email me at : CindyStrahota@kw.com
0 votes Thank Flag Link Mon Sep 14, 2009
Anne,

In my previous post, I did not give you my complete phone #. It is 630-550-1953

Mark Risting
0 votes Thank Flag Link Mon Sep 14, 2009
Anne,
It's hard to say. Certainly, most first time buyers are aware of the tax credit and time is running out. If I were a first time buyer, I would get the process started so the transaction could be completed by the November 30 deadline.
If you need assistance, do not hesitate to contact me. I would be happy to explain how to the credit works. It does phase out if income levels are exceeded.

Mark Risting
Prudential Starck REALTORS
630-55-1953
mristing@starckrealtors.com
0 votes Thank Flag Link Mon Sep 14, 2009
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