The New York Times Reports "Housing Perks Up"

According to an article in The New York Times, housing prices in nearly all of the major markets in the country rose in June. Home prices in San Fransisco rose 3.8% while home prices in Boston increased 2.6%.

In the Midwest, Cleveland saw an increase of 4.2% during June. How did Bloomington fare compared to the national market?

Keeping in mind that Bloomington has not seen prices decrease during this troubled time in the national market, Bloomington is doing well. The average home price decreased from May to June by 1.4%. But the number of home sales increased by a whopping 12.3%!

The increase in the number of sales and the decrease of the average sales price is directly related to the $8000 First-time-home-buyers tax incentive. More people are buying their first home and because these are first time home buyers, the average sales price will typically be less than for people who are buying their second or third home.

Another thing to keep in mind is that on the national market, home prices were showing great declines in home prices because of the vast number of foreclosures that were hitting the market. Though there are certainly foreclosures available for purchase in Bloomington, they account for only a small percentage of sales.

The verdict: the national housing market seems to have hit bottom and is bouncing back and Bloomington continues to have a healthy housing market. However, as home prices increase nationally, we will see an increase in home prices here in town, so the best deals are most likely happening right now.

Pending Transactions in Bloomington..Here Are The Numbers

As the masses of IU students return to Bloomington, some will be closing on new homes to live in during their time in Bloomington. Currently there are 129 Pending transactions for single family homes in Bloomington. Here are the numbers for these houses:

• Average list price: $210,610
• Highest list price: $1,300,000 (I'm guessing not a student...)
• Average number of bedrooms: 3
• Average number of baths: 2
• Average price per square foot: $99
• Average days on the market: 122

This last number, average days on the market, is an important one to keep track of. Currently it is taking an average of four months for a property to sell. Ideally that number should be 60 days for a truly healthy housing market where there is a balance between a buyer's market and a seller's market.

Featured Listing of the Day

This house is in such a lovely setting. Just 15 minutes north west of the IU campus, the home features over 3000 square feet of living space on over an acre of land. The floor plan is very open with a two story cathedral ceiling in the living room.

A first floor master bedroom makes for convenient one story living for 'empty-nesters'. The large bonus room on the second floor along with two bedrooms and a Jack-and-Jill bath make this home great for families as well.

Check out www.6620MegansWay.com for additional information and over thirty photos.

Price: $269,900.

$8000 First Time Home Buyer's Tax Credit May Be Extended

The $8000 first time home buyer's tax credit has been a huge boost to the housing market. It is set to expire the end of November, but an extension is possible. Here's an article with additional information from Realtor.org and the Washington Post:

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

Housing Forcast is Looking Up

Houses, like this one on Pickwick Drive in Bloomington, and home ownership have been long been the foundation of the American economy. Good news is just starting to appear about the US housing market and the US economy. Here are words from the National Association of Realtors Chief Economist:

NAR’s Pending Home Sales Index reached 94.6 in June, its highest mark in two years and a vast improvement from the cyclical low of 80.4 in January of this year. If buyer contracts persist at this level, the corresponding home sale closings would be about 5.2 to 5.5 million at an annualized rate. For comparison, last year existing home sales totaled 4.9 million. We’re on our way to that: in June, existing-home sales increased for a third consecutive month, posting 4.89 million seasonally adjusted annualized units.

The recovery in the housing market will lay the foundation for a sustainable economic recovery. With more sustained economic growth, jobs will be created. Job growth is what is needed for consumers to buy furniture, computers, a host of consumer products, and lead to a sustainable rise in auto sales even without the clunker incentives. Despite the risks facing us, our baseline economic forecast still looks much better – with higher home sales, stabilizing home prices, and an eventual recovery in jobs.

For the latest economic forecast insights and analysis, visit www.realtor.org/research/research_commentary

More Bloomington Real Estate Market Numbers

As of August 3rd, there are a total of 819 single family homes on the market in the Bloomington Board of Realtors MLS system. Here's the average breakdown of the inventory based on list price:

• $25,000 to $74,999: 14 properties on the market
• $75,000 to $99,999: 47 properties on the market
• $100,000 to $124,999: 57 properties on the market
• $125,000 to $149,999: 71 properties on the market
• $150,000 to $174,999: 81 properties on the market
• $175,000 to $199,999: 85 properties on the market
• $200,000 to $249,999: 79 properties on the market
• $250,000 to $299,999: 77 properties on the market
• $300,000 to $399,999: 64 properties on the market
• $400,000 to $499,999: 32 properties on the market
• $500,000 and up: 74 properties on the market

Market Information from the Bloomington Board of Realtors

As of this month, the largest 'back log' of housing inventory priced under $375,000 is in the homes priced from $175,000 to $199,999. As of August 3rd, there was a 12.8 month inventory of homes in this price range. This means that with standard market conditions, it will take 12.8 months to sell these houses.

Homes priced between $350,000 and $374,999 have only a 5.4 month inventory, one of the lowest for the current market.

If we look at homes priced over $600,000, there is a 73.2 month inventory currently available. So yes, if market conditions are typical it will take over six years for all of these houses to sell. Bloomington has a very strong real estate market but it does not excel in high priced home sales. So far for 2009 there have been a total of ten homes sold that were priced over $600,000 in our MLS area.

The Indiana Secretary of State's New Website

Indiana's Secretary of State has a newly designed website. Here is a note from the office of Todd Rokita about the website including a link:

Greetings! The Office of the Indiana Secretary of State has redesigned its web site www.in.gov/sos. This site was designed with input from various stakeholder groups to provide a standard look and feel, and a more user-friendly experience.

The redesigned web site has standard navigation on the left. On the right, you will find a list of popular online services, FAQs and a tab called "I want to..." This tab contains links to popular actions taken by users.

Note: In order to bring you the best possible online experience, the redesigned site is built on a flat structure. This means that many of our web page addresses have changed. If you have bookmarked any of our pages, please make sure to update your bookmarks.

Did You Know That FHA Loans Can Include Money for Renovations?

In an article from Realtor.org:

The Federal Housing Administration is encouraging use of its little-known 203(k) loan program.

The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent.

The program requires the use of credentialed contractors and can include cosmetic improvements as well as major renovations like replacing plumbing or electrical. Completing the application process requires patience, says Nancy Hammock, an associate with RE/MAX Properties in Western Springs, Ill.

But in this lending environment, more homebuyers are finding 203(k)s worth the hassle. In fiscal 2008, the government insured about 6,700 of the 203(k) loans. This year, more than 11,000 loans have already been insured, according to the Office of the Comptroller of the Currency.

Source: Chicago Tribune, Mary Ellen Podmolik (08/14/2009)

Stone Cutters Coffee and Wine Cafe

Stone Cutters, the new coffee shop on the east side (Covenanter Drive) has just expanded their menu to include tapas and wine in the afternoons and evenings. The tapas menu is created by owner Greg Danielson and changes weekly. A sample of this past week's menu included:

• Brioch with Chai Tea Whipped Butter for $2...excellent!
• Mozzarella Stuffed Meatballs with Marinara and a Parm Crisp for $7...delicious!
• A beautiful Cheese Plate with three different compotes and fresh bread for $8...super!
• Dim Sum of steamed Pot Stickers and Chix Spring Rolls for $6...lovely!

The wine list has several whites, reds and Prosecco. The Brancotte Sauvignon Blanc for $6 a glass was really lovely and others at the table enjoyed a split of Mionetto Il Prosecco for $14.50.

Stone Cutters plays great music all day and when the weather cools down just a bit, it'll be wonderful to sit outside and enjoy tapas and a glass of wine. All this at a great price and a super convenient location for many on the east side of Bloomington.

And for a bonus, the next two Fridays and Saturdays at Stone Cutters, they are offering Buy-one-get-one-free tapas from 5 till 7. Check it out!

Photo: Charlie Dupree enjoying a break at Stone Cutters this week.

Bloomington Board of Realtors is to Launch Their New MLS Soon

The Bloomington Board of Realtors will launch their new MLS system on September 30th of this year. This is a project that has been in the works for quite a while. Originally the board had planned to launch the new site mid summer. To find out more about the new system, follow this link:

http://www.marketlinx.com/demos/innovia/innovia.htm

This new system is from the company Market Linx and the system is InnoVia.

A Fabulous Mansion in the Middle of the Bay

A friend sent these photos to me of this amazing house perched on a rock in the middle of the Narragansett Bay in Rhode Island. The 103 year old house is approachable by boat. These are such beautiful views through the windows. Thanks to fropki.com for the photos.

Important information about Chinese Produced Drywall

I was working with an out-of-town buyer two weeks ago and he mentioned the issue of Chinese produced drywall. He had an associate who had huge issues with this product in Florida. Today the National Association of Realtors forwarded this article via the Wall Street Journal:

Home owners in Florida, as well as other parts of the country, are claiming that drywall imported from China is making them sick and corroding the plumbing and HVAC systems in their homes.

An estimated 100,000 houses in the United States, most built in 2006 and 2007, may have some of the allegedly defective drywall, which is being investigated by a plethora of government agencies, including the Environmental Protection Agency and the Centers for Disease Control.

If these investigations result in a recall, it could be a costly proposition. Experts estimate that pulling out defective drywall and replacing corroded electrical wiring, plumbing and HVAC in an affected home could cost at least $100,000 per property.

Several class action lawsuits have been consolidated in federal court in New Orleans, but suing foreign-based manufacturers for liability is difficult and any judgment is almost impossible to enforce, experts say.

Source: The Wall Street Journal, M.P. McQueen (08/07/2009)

July Real Estate Sales for Bloomington - Condos and Townhouses

Unlike single family home sales for July, the numbers are up for last month's sales over the same time period in 2008. The total sales for the month in '09 are 38, up 18% from July of last year. Here are this July's numbers:

• Total sales: 38
• Average sales price: $124,107
• Average days on the market: 177
• Average price per square foot: $81
• Average square feet: 1529

The sales prices of these condos/town homes are also up. Comparing July '09 to July '08, the average sales price saw an increase of over 8%.

A Sample of Today's Interest Rates

Interest rates are rising and falling on a regular basis. This is an important time for anyone considering refinancing to check the rates on a daily basis and take advantage of the small windows when rates are low.

Here's a sample of today's rates from local lenders. As always on the b-town Report rates are for 30 year fixed rate conventional mortgages and rates are subject to change.

• Fifth Third Bank (www.53.com): 5.375%
• Monroe Bank (www.monroebank.com): 5.25% with .5 points
• Peoples State Bank (www.peoples-bank.com): 5.625%
• Premier Home Mortgage (www.premierhomemortgage.com): 5.375%
  
  

July Real Estate Sales for Bloomington - Single Family Homes

For the month of July in Bloomington, there were 127 single family home sales. The number of sales is down 11.8 % from 2008. The Average selling price also saw a decrease of 8% from the same time period in 2008. Here are the numbers for single family home sales for July 2009 in Bloomington:

• Average sales price: $175,368
• Average list price: $185,926
• Average day on the market: 103
• Average price per square foot: $93
• Percentage of sales price to list price: 94%

To look at the larger picture, home prices are up so far in 2009 from last year. The average selling price for single family homes in Bloomington for the first 7 months of this year was $191.962. The average selling price for the same period in 2008 was $187,386. This shows an increase in the average home price of 2.5% in the past 12 months.