2010 Year in Review

Just when we thought the Real Estate market was revving up, the engine stalled again. Buyers continue with their indecision. Should I buy a home? What if prices drop further? Is my job safe? Again, low consumer confidence.
The only good news about the 2010 housing market is affordability reached an all time high. The combination of lower home prices and low interest rates, made purchasing a home the most affordable since World War II.

Billionaire Warren Buffett said the U.S. will recover from the residential real estate slump soon, as demand for houses catches up with the supply that accumulated during the bubble.
"Within a year or so, residential housing problems should largely be behind us," Buffett wrote in his annual letter to the shareholders of his Berkshire Hathaway. "Prices will remain far below 'bubble' levels, of course, but for every seller or lender hurt by this, there will be a buyer who benefits. Indeed, many families that couldn't afford to buy an appropriate home a few years ago now find it well within their means."

Cathy & I continue to enjoy our Family and our 3 year old grandson Tyler. It is so much fun watching him grow! We were also told by our daughter that we have another baby Boy on the way, due in April! We were able to have a reunion of 4 generations of Family this year, as Cathy’s Dad visited us from Florida.

While over 20% of the licensed Realtors left the business over the past few years, we adapted to this market by investing in new technologies that will give our sellers a definite advantage in this slow market. Picture slide shows, Virtual tours & now Video tours are helping our listings sell faster. We invested in Mobile marketing, where potential buyers can look up our listings via their smart phones and get not only detailed property information, but multiple photos of the home right in their phones. In this slow housing market, we are doing everything possible to ensure that our listings are readily available to the few buyers who are currently looking for homes.

Although the buyers are indecisive right now, the real estate market should improve in the very near future. People want to have a home of their own where they can raise their family, share with their friends and retreat from the world to feel safe and secure. The emotional reasons for owning a home have never changed. We live in one of the few countries of the world who values homeownership so much that we have supported it in our laws.

Keep in mind that half of our business is in Indiana now. We have several offices in NW Indiana for your convenience. Plus, we have that Illinois Connection!

In our 26th Year of providing Real estate sales & service to the community, we want to thank you for your business, kind words & your referrals.

We wish you and your Family only the Best for 2011 !

Cathy & Jim Higgins

Why Your Credit Score is so Important!

When Higher is Lower

Buyers need to know their credit score before writing a contract to buy a home so they'll have a realistic idea of what their payment will be. Most lenders quote rates based on the best credit score. If a buyer has a lower than "A" credit score, the rate goes up in increments that could dramatically affect the payments.

There is an inverse relationship between the credit score and the interest rate charged. The higher the score, the lower the rate will be. You can see from the chart, this lender quoted their best rate for a credit score of 760-850. However, this lender's minimum acceptable score of 620-639 would have to pay 1.5% higher interest. In the example below, it makes almost $200 a month difference. It is critical to know your credit score before you make a decision to buy a home.

30 year Fixed Rate Mortgage - $200,000 Loan Amount
FICO Score
APR
Monthly Payment

760-850
4.466%
$1,009

700-759
4.688%
$1,036

680-699
4.865%
$1,057

660-679
5.079%
$1,083

640-659
5.509%
$1,137

620-639
6.055%
$1,206

Buyer's logical first step is to get pre-qualified or pre-approved with a mortgage lender prior to looking at homes. This gives the buyer the confidence of knowing how much mortgage is available and if they can expect the best interest rate which will lower their payment. Other benefits include bargaining power, quicker closing and the chance to discover any issues on their credit report that need to be corrected before going on contract.

The Worlds Most Expensive Home $1B

Measure out: one part Hollywood; six parts traffic; a bunch of rich power-moguls; pour in six heaped cups of poverty; equal parts of mayhem and order; fold in your mixture with equal parts India; throw it all in a blender on high (adding generous helpings of pollution to taste) and presto: Mumbai.

This 27-story single-family residential tower recently finished in Mumbai almost certainly vanquishes all pretenders to the throne of world's most expensive private home, with a price tag estimated at somewhere close to $1 billion.
Built by Mukesh Ambani, the chief executive of Reliance Industries, the home reaches new levels of decadence, with three helipads, swimming pools, four-story "hanging gardens" and a six-story parking garage. Dubbed "Antilla," the 173-meter tall mansion also includes a 50-seat cinema, ballroom, gym and every room is custom designed.

According to published reports, the tower cost $77 million to build, but that only hints at its value. After all, how do you put a price tag on a one-of-a-kind building in a city where every piece of open land is coveted like gold?

I could find a billion other things i'd rather do with my money.

Buying a Home Now Makes Sense

By Karl Case, professor emeritus of economics at Wellesley University & co-creator of Standard's & Poor's Case-Schiller housing index:



For people with a realistic version of the American Dream, buying a house now can make a lot of sense. Think of it as an investment.

• The return on that investment comes in two forms. First, you live in the home and so it provides you with a real flow of valuable services. The 2nd part of the yield on investment is the capital gain you receive if the home appreciates and you sell. Gains are excluded from taxation if the property is a primary residence and the gain is less than $250,000 for a single filer or $500,000 for a married couple filing jointly.

• Do the math. Four years ago, the monthly payment on a $300,000 house with 20% down and a mortgage rate of about 6.6% was $1,533. Today that $300,000 house would sell for $213,000 and a 30 year fixed rate mortgage with 20% down would carry a rate of aboput 4.2% and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.

Even if home prices have not fallen 25-30% in the area you want to live, interest rates are as low as they were when Dwight Eisenhower was President. Less interest is less monthly payment and thousands of dollars less in interest over the course of the loan. AND, no matter where you want to live, home prices have fallen.

Real Estate Market Update Illinois & Indiana

Illinois $100,000-250,000, June 17th to August 16th, 2010.


Town: # Homes that Closed Past 2 Months --- Avg Sales Price --- Avg Days on Market

South Holland: 27 --- $151,940 --- 212

Lansing: 8 --- $153,862 --- 183

Calumet City: 8 --- $124,449 --- 182

Lynwood: 5 --- $161,800 --- 387

Crete: 13 --- $173,500 --- 356

Town, Indiana $100,000+ June 17th to August 16th, 2010


Munster: 32 --- $275,938 --- 157

Dyer: 21 --- $244,034 --- 105

Highland: 27 --- $168,643 --- 126

St John: 15 ---$249,431 ---175

Schererville: 44 --- $232,265 --- 159

If we did not list your Town, Let us know & we will send you a report.

Interesting Survey on Restaurants

Best Burger
1.Five Guys
2.In-N-Out Burger
3.Wendy’s
4.Burger King
5.McDonald's

Best French Fries
1.McDonald's
2.Five Guys
3.In-N-Out Burger
4.Wendy's
5.Burger King

Best Milkshakes
1.Dairy Queen
2.Cold Stone
3.Sonic Drive-In
4.Chick-fil-A
5.Ben & Jerry's

Fast-Food Chains

Best Fried Chicken: Kentucky Fried Chicken (KFC)
Best Grilled Chicken: Chick-fil-A
Best Fish: Long John Silver’s
Best Salads: Panera Bread Co.
Most Child-Friendly: McDonald’s

Full-Service Chains

Best Steak: Outback Steakhouse
Best Pasta: Maggiano’s
Best Breakfast: Cracker Barrel
Best Seafood: Bonefish Grill
Best Desserts: The Cheesecake Factory
Most Child-Friendly: Chuck E. Cheese’s

Full results can be found at zagat.com/fastfood.

When the Coast is Clear

Jimmy Buffett and Friends performed a free concert at Gulf Shores, Alabama, recently. A huge crowd of 35,000 was on hand for the show right on the beach. The idea was to help local businesses and the community from the devastation of the oil spill. This is a classic song updated to fit the oil spill disaster. This is an excellent video. Thought you might like it.

Http://www.cmt.com/videos/misc/536045/when-the-coast-is-clear.jhtml

Now Maybe the Best Time to Buy A Home

This may be the best buyer's market that we'll see in our lifetimes. There are lots of legitimate reasons why a person should be taking advantage of this market if they are able.

Obviously, if a person doesn't have the down payment or credit score, they won't be able to seize this opportunity. If a person is concerned about losing their job, that would be a valid reason for not buying now. If you are planning on relocating in the next year or two, maybe now isn't the time to buy. But here are some very good reasons if you have been considering buying a home:

Top Ten Reasons to Buy a Home NOW....
1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn't be overlooked. The average mortgage interest rates for the past four decades were: 1970's 8.9%; 1980's 12.7%; 1990's 8.1%; 2000's 6.3%. Most experts agree that they're going to rise this year.

2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.

3. Selection is good – In a seller's market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.

4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer's closing costs, pre-paid items or interest rate buy down.

5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.

6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.

7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.

8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.

9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.

10. The combination of reasons to buy a home may never be stronger than now.

Interest rates are going up; it is just a matter of when.
A basic rule of investing is to buy low and sell high.
There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did.
There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision.
The help of a trusted professional can make the difference.

Vacation Home Checklist

Going on vacation is an exciting time and there can be all kinds of last minute problems and annoyances that can arise that can keep you from taking care of things that you should before you leave. Unfortunately, remembering those things that you should have done later on is not going to help, so here are some things to be sure to check off on your list before you leave on vacation:


1. Lock all doors and windows throughout the house.


2. Unplug most electronic items especially those that are expensive or may have valuable data on them. These can include your TV set, stereo, and especially computers. If a storm comes through while you are away, these items can be damaged beyond repair simply by being plugged into the wall outlet, so remove that possibility before you leave. Also, if you use a modem it would be good idea to unplug it as damage can also happen due to the phone connection used.


3. There is no need for your water heater to continue to operate at a high level since it will not be used throughout the time that you are gone, so turn it down to a low setting.


4. Call and cancel your paper and mail delivery while you are gone. You certainly don't want newspapers and mail piling up outside your home and sending a clear signal to burglars that your house is an easy target.


5. Leave a radio or something going in the house that makes sound and can be viewed as an indication that someone is home.


6. Disconnect the garage door so that it cannot be operated by remote control from the outside. Usually there is a lever that you can pull on the opener that can accomplish this easily.


7. Unplug your washing machine hoses. These can easily break and if they do while you are away for several days it could cause near catastrophic flood damage to your home before you would be able to do anything about it.


8. If you have pets make sure that they have an automatic feeder and plenty of food and water, if you choose not to board them in a kennel or leave them with someone else. Also be sure that the heating/AC system is set to keep things comfortable for them in the house while you are gone. If you do choose to leave your pets at home it's a good idea to arrange for someone to stop by daily and check on them and spend a little time with them too.


There are other reminders that would be good to have on your away list too, but these should be a good start to help keep you focused on necessary items to take care of before leaving on any family vacations.

Market Update

The Real estate market continues to be slow. Homes are selling, but at a very slow pace.
We (Cathy & Jim) have sold 31 Homes so far this year, which is at the top of the market average for Realtors. Our marketing plan is reaching the buyers that are looking, but there are few buyers actually purchasing homes.

Some good news is that Internet Views of homes, on Realtor.com, the #1 home search site in the country, are as high as ever, indicating that there are many interested buyers, but they are not making the move to purchase due to low consumer confidence... A sign that the economy is still in trouble. We send these Internet View reports to our clients on a regular basis.

New statistics show that 84% of the home buyers start their search on the Internet. Again showing the importance of Internet marketing with an enhanced webpage like we provide our clients.

The most critical factor for housing in 2010 is what happens to employment. People who have jobs are becoming much more risk-averse to buying a more expensive house; for one they worry will they keep their job and two, can they sell the existing home.”

As consumer confidence in the economy is restored, then it is likely that a more robust rebound in sales will occur; in the interim, a high percentage of the housing transactions will be from households relocating as a result of job changes and, with the continuing aging of the Illinois and U.S. populations, there will be housing sales as a result of retirements.

In the last hours for congress to get the Home Buyer Tax Credit deadline of June 30th to get extended to September 30th for closing, has hit several road blocks. This was an amendment attached to HR 4213 “American Jobs and Closing Tax Loopholes Act of 2010” or “The Unemployment extension bill”. This hit several political hurdles that stalled the bill and could not get enough votes to pass the Senate.
What has happened now is you have a couple of stand-alone bills, one for unemployment and for tax credit extension. The tax credit extension bill has passed the house on Tuesday, so we will need the Senate to pass with no changes then the president can sign it into law. Will this happen before the end of the day, it is very possible, BUT as of now for home buyers to get their tax credits they need to close by June 30th and had their sales contract written by April 30th.

Where have All the Buyers Gone?

We are convinced that the first time homebuyer tax credit was a huge success. Business was up, home viewings by prospective buyers were way up.

Then came April 30th and the Home viewings dropped to record lows.
Our office charts the number of showings on our property listings.
Home viewings were up over 70% in 2010 compared to the same period in 2009.
The week after the tax credit ended, showings were down about 14% compared to the same period in 2009, and 2009 was an extremely slow year.
But, this is not a reason for home sellers to panic.

The only constant in real estate is change.
Eventually, the buyers desire to purchase a home will outweigh the thoughts of a tax credit and they will return.
And hopefully, soon, President Obama will announce whether the tax credit is coming back. This will make up the minds of the indecisive.

Real estate is not going to return to a sellers market anytime soon, but Homes will continue to be purchased, because mortgage interest rates are historically low and because home ownership is still the American Dream.

News You Can Use

*While inflation remained low, stronger than expected economic data released this week was negative for mortgage markets. As a result, mortgage rates ended the week a little higher.

**The big news in this week's economic data came from the housing sector. March Existing Home Sales rose 7% from February, and existing home sales were 16% higher than one year ago.
The chief economist of the National Association of Realtors (NAR) credited the homebuyer tax credit for the strong March housing data. Buyers must sign a contract by April 30 to take advantage of the tax credit, so the April data should benefit as well.

***A popular measure of business investment rose at the fastest rate in 9 months.

****First-time buyers accounted for 44% of existing home sales in March.

Northwest Indiana Real Estate Update

Northwest Indiana
What's Happening in the local Real estate market?
2010 has not produced the busy real estate market we were expecting, even in Indiana.
Sales were up from 2009, but below expectations.
Inventory is higher this year than last.
The 1st time home buyer & existing homeowner tax rebates end April 30th.
It will be interesting to see what effect this has on sales.

Sold & Closed Detached Properties
Town ---------------2009 - 2010 (Jan 1-April 8th)

Munster -------------26 - 32
Dyer ------------------14 - 20
Schererville----------24 - 25
St. John---------------16 - 18
Highland -------------31 - 36
So Hammond--------46 - 55

Sales were up on average 17%.


Sold & Closed Attached Properties, Townhomes, Condos, etc
Town ----------------2009 - 2010 (Jan 1-April 8th)

Munster ------------4 - 13
Dyer -----------------9 - 10
Schererville --------14 - 19
St. John -------------8 - 6
Highland -----------11 - 8
So Hammond ------1 - 0

Sales were up on average 20%.

Cathy & Jim are licensed in Illinois & Indiana for your convenience, and belong to both Multiple Listing Services, Illinois & Indiana.

Market Summary Illinois

Illinois South Suburbs
What's Happening in the local Real estate market?
2010 has not produced the busy real estate market we were expecting.
Sales were up from 2009, but below expectations.
The 1st time home buyer & existing homeowner tax rebates end April 30th.
It will be interesting to see what effect this has on sales.

Sold & Closed Detached Properties
Town--------- 2009 - 2010 (Jan 1-April 8th)

Lansing ----------- 34 - 46
South Holland--- 47 - 58
Calumet City------72 - 73
Lynwood----------- 4 - 14
Crete--------------- 31 - 25
Thornton------------ 6 - 4
Beecher-------------- 9 - 9

Sales are up approx 12% in these south suburb towns.
The number of foreclosures remains extremely high.

Sold & Closed Attached Properties (Condos, Townhomes, etc)
Town--------- 2009 - 2010 (Jan 1-April 8th)

Lansing----------- 3 - 10
South Holland--- 0 - 0
Calumet City----- 4 - 7
Lynwood---------- 1 - 2
Crete--------------- 1 - 1
Thornton--------- 0 - 0
Beecher----------- 2 - 2

Most sales here are foreclosures.
If we missed your Town, send us an Email and we will quickly send it to you.

3 Home Video Tours

10553 Oakridge ct, St. John, In
Beautiful Brick Ranch with large 3 car garage. This Home Shows Like New! Glimmering Hardwood flooring in Foyer, Dining room & hallways. Attractive blend of Carpet & Ceramic tile. 2 sided fireplace from Kitchen to Great room. Huge master bedroom suite w/ walk in closet, whirlpool tub, double sink vanity & separate shower.
http://www.youtube.com/watch?v=XeaLFU6sB8M

1807-183rd St, Lansing
Over 4500 Sq Ft of Finished Living on 3 Levels!
Luxurious Brick 2 Story. Countless amenities. Vaulted & Tray ceilings. Grand entrance with Oak staircase and Hardwood floor. Beautiful blend of Hardwood & Ceramic flooring. Solid Oak doors & trim. Kitchen has Oak Cabinets, desk area, Granite counters & a Large eating area with Vaulted ceiling & Plant shelf with a picturesque View of the yard. Stove, refrigerator, Dishwasher & Microwave included. Luxury master bedroom suite w/ balcony, tray ceiling, fabulous Jacuzzi tub, separate Shower, double sink vanity, toilet, bidet & walk in closet. Main level Family room w/ Brick Fireplace which has a fan to distribute the heat throughout the room. Formal Dining room w/ attractive mirrored wall. Finished Basement w/ Fireplace in the 2nd Family room, PLUS an Office or 5th bedroom. There is also a full bath. Could be used for related living because there are 2 sets of stairs... one to the main level and one to the exterior. 2 Balconies off the bedrooms w/ French Doors. Main level laundry room w/ Washer & Dryer Included. 3.5 car heated garage w/ running water & floor drain. Large Deck w/ hot tub. Heated Inground pool w/ Poolhouse & full bath.
http://www.youtube.com/watch?v=9Jlb7EZsuh4

18616 Sherman, Lansing
This Ranch home is Gorgeous. Updated beautifully top to bottom. Attractive hardwood & laminate flooring. Dream Kitchen w/ Island, new cabinets & counters & new SS Stove, refrig, DW & MW . Large Dining area. Double sink vanity & new tub enclosure in main bath. Finished bsmt w/ Family rm, Game area & 4th bdrm. All new fixtures, windows, doors & flooring throughout. 2.5 car garage. Fenced yard. Classic front porch.

http://www.youtube.com/watch?v=JjfV_2lOBMM

Makes you Stop and Think

This is interesting. Makes you stop and think!!

Have you ever been guilty of looking at others your own age and thinking, surely I Can't look that old?
Here is a little story about that:
My name is Alice Smith and I was sitting in the waiting room for my first appointment with a new Dentist. I noticed his DDS diploma, which bore his full name. Suddenly, I remembered a tall, handsome, dark-haired boy with the same name in my High School class some 30 years ago. Could he be the same guy that I had a secret crush on, way back then?

Upon seeing him, however, I quickly discarded any such thought. This balding, gray- haired man with the deeply lined face was way too old to have been my classmate.

After he examined my teeth, I asked him if he had attended Morgan Park High School. "Yes, I did. I'm a Mustang," he gleamed with pride. "When did you graduate?" I asked. He answered 1960. "Why do you ask?" "You were in my class!" I exclaimed.
He looked at me closely.
Then that ugly, bald, wrinkled, fat, decrepit old man asked,
"What did you teach?"'

What we've Learned from the Housing Bubble Bust

The pop heard ’round the world when the housing bubble burst brought a lot of bad news — from plummeting home prices to mounting foreclosures.
Depressed home prices and low interest rates may have you wondering if the real-estate market has reached its bottom. Even if the worst is behind us, it makes sense to take in the lessons of the past few years so we can avoid making the same mistakes again.

Lesson No. 1:
Adjust your expectations. Years ago, people purchased a home, lived in it all or most of their lives, passed it down to their children and enjoyed a gradual increase in wealth as the home gained value. But in the last decade, people bought a house expecting it to increase in value about 5 or 10 percent in a couple of years, and they’d move on to something bigger.

If the housing-bubble nightmare has shown us anything, it’s that you can’t count on a home to be worth more than you paid for it when you’re ready to sell. It’s back to basics. You have to be in it for the long haul and you can’t be looking at your home value every month to see how much it’s gone up.

Lesson No. 2:
You can’t time the market. When home prices were skyrocketing, many people bought homes they could barely afford — or couldn’t afford — thinking they’d ride the wave of rising equity since the market was on the upswing. Likewise, today, many potential homebuyers are sitting on the sidelines waiting for the market to reach its ultimate low.
You will never sell at the all-time high and you’ll never buy at the all-time low by planning it. The market will time you. You will sell, and on occasion you may happen to hit the all-time high or happen to hit the all-time low, but to study it and plan it and figure out and actually do it — it doesn’t happen.
Instead, take a long-term approach to real estate and look for a home that enhances your life and will increase in value over time.

Handbook 2010

This is another one of those how to live your life. This one is pretty good.
Maybe we need to be reminded of this at least once a year....

Health:
1. Drink plenty of water.
2. Eat breakfast like a king, lunch like a prince and dinner like a beggar.
3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.
4. Live with the 3 E's -- Energy, Enthusiasm and Empathy
5. Make time to pray.
6. Play more games
7. Read more books than you did in 2009 .
8. Sit in silence for at least 10 minutes each day
9. Sleep for 7 hours.
10. Take a 10-30 minutes walk daily. And while you walk, smile.

Personality:
11. Don't compare your life to others. You have no idea what their journey is all about.
12. Don't have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
13. Don't over do. Keep your limits.
14. Don't take yourself so seriously. No one else does.
15. Don't waste your precious energy on gossip.
16. Dream more while you are awake
17. Envy is a waste of time. You already have all you need.
18. Forget issues of the past. Don't remind your partner with His/her mistakes of the past. That will ruin your present happiness.
19. Life is too short to waste time hating anyone. Don't hate others.
20. Make peace with your past so it won't spoil the present.
21. No one is in charge of your happiness except you.
22. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
23. Smile and laugh more.
24. You don't have to win every argument. Agree to disagree

Society:
25. Call your family often.
26. Each day give something good to others.
27. Forgive everyone for everything.
28. Spend time w/ people over the age of 70 & under the age of 6.
29. Try to make at least three people smile each day.
30. What other people think of you is none of your business.
31. Your job won't take care of you when you are sick. Your friends will. Stay in touch.