Effingham Area Real Estate News--- JULY 2010

by Terry Youngblood, Realtor, 217.246.4663

email: terry@effinghamhomes.com     website:  www.TLyoungblood.com

RE/MAX Key Advantage, Effingham, IL Phone 217.342.4050

Page 1

IT’s HOT!!!  So let’s talk about Lake Sara!!!

Buyers have returned to Lake Sara.  As many properties have sold already this year as ALL of last year (10 vs 10).  There are currently two properties pending closing.

Buyers appear to prefer the properties with good water depth and view.  And in general, that requires a purchase price of $375K and up!  The highest sale so far this year has been $815K.

Properties are, generally, valued beginning at the waters edge and moving back toward the house.  In fact, the house quite often is a lesser factor in determining price.  Price is a function of Excellent, Good, Fair, or Poor water view and depth.  The next factor is boathouse and dock using the same descriptors.  Some properties have a minimal boat dock…some are essentially another house with kitchens, baths, TVs, etc.  Some boat houses are wood, some are concrete.  Some have no boat slips…some have 2 slips with electric boat hoists.  And of course, the house, garage, landscaping, outdoor amenities such as decks and patios, all are factors.  AND that always important issue of LOCATION!

There are some excellent buys at the lake on properties with waterfront, but limited water view and depth.  Some of those properties are selling for under $225K.  For the buyer wanting privacy, a place to dock a boat in the water, and quick access to the main body of water…these properties would serve well. 

This is the best opportunity in years to buy a lake house at Lake Sara!  Especially for the weekend, or vacation property.  For many families, Lake Sara has become a central gathering place for family reunion, fun and lifetime memories.  Many buyers today tell me they are buying because of the great times they remember as a kid while visiting grandparents, or other friends and relatives who lived at the lake.  And they want the same great times for their children and grandchildren.

Effingham Area Real Estate News--- JULY 2010

by Terry Youngblood, Realtor, 217.246.4663

email: terry@effinghamhomes.com     website:  www.TLyoungblood.com

RE/MAX Key Advantage, Effingham, IL Phone 217.342.4050

Page 2

EFFINGHAM Sales for January thru July 15, 2010 are UP 31.1% over the same period 1 year ago!!!  (Residential units sold with Effingham address, non-lake)

The even more positive number is there are 29 PENDING sales as of July 15, 2010.  Pendings are agreements to purchase that are pending financing, etc.

These numbers are down a from the May Newsletter.  At that time sales were up 42.2% and Pendings stood at 43.

Apparently, the end of the First Time Home Buyer Tax Credit, and the Existing Home Buyer Tax Credit caused sales to fall off.

However, rates have gone down since then.  That is the LONG TERM benefit!!!  4% for 15yrs and 4.5% for 30yrs.  WOW!!!  I was reviewing an abstract recently in which the property was purchase in 1868.  The interest rate was 6%!!! 

Now you can buy a $237K house for about the same payment as you could have bought a $200K house at 6% rate.  If ever you were going to get that dream home for your family…now is the time.

The $50-$80K range has been far and away the biggest seller since the first of the year with 20.  Fourteen have sold since May 1.  I suspect there will be a rapid decrease in the rate of sales in that price range as the end of the First Time Home Buyer Tax Credit ended June 30.   

The $120-$200K range is up significantly over last year.  That is likely the result of the low interest rates.

However, it is puzzling that the over $200K home sales remain sluggish compared to  last year.  It is puzzling that those buyers remain on the sidelines when they can buy so much more home now for the same monthly payment.

This is a great buying opportunity in the $250K to $500K range!!!

Once again, I encourage you to make the move NOW to get the home for your family that suits your needs, wants, and DREAMS.

Page 3

STATISTICS