Effingham Area Real Estate News--- January 2010

by Terry Youngblood, Realtor, 217.246.4663

email: terry@effinghamhomes.com     website:  www.TLyoungblood.com  or terryyoungblood.remax.com

RE/MAX Key Advantage, Effingham, IL Phone 217.342.4050

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HAPPY NEW YEAR!!!  May this be a year of Health and Happiness for you all!!!

I know you are all busy trying to “DO MORE WITH LESS”…so I will try to make this as brief and informative as possible.

The National news talks of a double dip recession and increased loan defaults.  Florida experiences 60% short sales.  Detroit can hardly give a house away.  Tucson is in deep depression relative to housing.  Blah, Blah, Blah. The sky is falling. 

THAT IS NOT THE CASE IN EFFINGHAM, IL!!!  Our local real estate market is sound and nothing like the national news portrays.  However, buyer sentiment is skewed by the media.  So, some buyers are expecting DEEP discounts when making an offer.

We have not experienced “firesale” prices.  Although Sellers have become more aggressive in pricing, there have not been 20, 30, or 40 percent discounts as in some parts of the country.

Our local market continues to maintain its value relative to coastal or metro areas. 

JUST THE QUICK FACTS

-  Units sold in 2009 were nearly the same as in 2008.  (193 vs 201, respectively)

-  High-end homes and mid-range homes are selling marginally better than in 2008.

-  Under $100,000 priced homes are not selling as well as in 2008. 

-  Mortgage Interest rates remain low..but moving up.

-  The TAX CREDIT for First Time Home Buyers has been extended until April 30, 2010.

-  A Tax Credit for EXISITNG HOME OWNERS HAS BEEN ADDED UNTIL April 30, 2010.

The following is an analysis of the market from January 1, 2009 to December 31, 2009, versus the same time period for 2008.  For home sales with an Effingham address, Non-lake and Non-farm.

            -     Sales under $50,000 were the same as in 2008.

-          Sales in the $50,000 - $80,000 range were down by 13 units in 2009 vs 2008.

-          Sales in the $80,000-$120,000 range were up by 6 units in 2009 vs 2008.

-          Sales in the $120,000- $180,000 range were down by 7 units in 2009 vs 2008.

-          Sales over $200,000 were greater in 2009 than in 2008

In 2008, we noticed buyers were reluctant to purchase upper end homes.  In 2009, sellers became more aggressive on pricing, and Buyers began to buy that market.  Some sellers have adjusted their list prices downward by 5-10%, or more.  With the adjusted prices, there is about a 5%-8% discount of list to sales price.  While much of the inventory in that price range has been sold...there are still some excellent values out there for those wanting move up.  In fact, there may not be a better time to buy in the next several years.

Effingham Area Real Estate News--- January 2010

by Terry Youngblood, Realtor, 217.246.4663

email: terry@effinghamhomes.com     website:  www.TLyoungblood.com  or www.terryyoungblood.remax.com

RE/MAX Key Advantage, Effingham, IL Phone 217.342.4050

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FREE MONEY TO YOU!!!

First Time Home Buyer Tax Credit up to $8,000

The first time home buyer program had little effect on our market in 2009.  However, since the end of 2009, after the first round of the Tax Credit program would have expired, we have experienced an increase in persons wanting to capture that Tax Credit.  Perhaps they did not understand it the first time. Perhaps, it dawned on them that they just missed out on $8,000.  Whatever, the reason, I am glad they have gotten on board. 

Existing Home Owner/Buyer Tax Credit of $6,500

In addition to the First Time Home Buyer Tax Credit, the government has added an Existing Home Owner Tax Tredit of $6,500 if they buy a different home.  If you have lived in your current home 3 of the past 5 years, and you are considering a change in housing, NOW is the time for you to sell yours and buy a different house.  This program pays you $6,500 to do that. Please call me to find out how you can capture this $6,500!!!

CAUTION, under BOTH of these programs, the agreement to purchase a home MUST be signed prior to April 30, 2010.

OK.  I’ve beat that horse enough.  Let’s move on.  Call me if you have any questions about how to get this FREE CASH BACK.

Lake Sara:

There were 9 sales closed on the Lake in 2009.  Discounts there also ran 5-8% list to sell price.  There are currently 19 homes on the market.  About fifty-percent of the homes sold were from $350,000 - $500,000, with some up to $650,000. We have not seen prices dropping appreciably.  A home on Lake Sara is a limited commodity and continues to hold its value. 

FORECAST:

My opinion is that we will experience a decent buyer pool until the tax incentive expires April 30, 2010.  If you plan to sell in the next few months…I encourage you to get your house on the market TODAY!!!  I suspect when the Tax Credit is over we will see fewer buyers in the market.

Additionally, I expect interest rates will rise rapidly by fall 2010.  We have noticed about a .25% increase in the 30 yr mortgage rates over the past couple of weeks.  The Fed has indicated they will be increasing interest rates as the unemployment numbers begin to decrease.  And with the government borrowing massive amounts of money …there will be less money available for businesses and home buyers, thus increasing the demand and cost of borrowed money.

Effingham Area Real Estate News--- January 2010

by Terry Youngblood, Realtor, 217.246.4663

email: terry@effinghamhomes.com     website:  www.TLyoungblood.com  or www.terryyoungblood.remax.com

RE/MAX Key Advantage, Effingham, IL Phone 217.342.4050

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Units Sold by Price Range with Effingham Address 

2009 versus 2008