Will We Close the Gap?

 

Wishing all of you a Merry Christmas and a Fantastic 2023 !

       Cathy & Jim Higgins along with Dixie Lily.

What makes a House a Home?

 

Question: As a Realtor What do you think is the difference between a house and a home?

Answer: How many times have you thought about all the places you have lived over your lifetime? Christmas at home with your parents when you were allowed to open one present before Christmas eve dinner and the excitement that brought? You remember the living room with the tree you decorated with your parents, which looked so warm and festive in that cozy room. The memory of that home is still special to you today.

Maybe it was that attic apartment above the corner grocery store, where every time the milk cooler door closed, you could hear it loud and clear.

How about your first home where the Kitchen was so small that you and your spouse took turns when you needed to enter it?

So many memories that put a smile on your face. That’s why memories are so special. Whether it’s remembering a loved one that has passed or the memory of living in a home that brought back happy feelings of an earlier part of your life.

Those special memories of our past are part of the process for keeping us happy. Although, we should never live in the past, it will always be a part of who we are.

Maybe driving past a previous home and remembering when your daughter fell off the bike on that driveway, skinning her knee and wanting a hug from you so the hurt would go away.                                                              

The basketball hoop on your garage where you taught your son or daughter to do layups.

Remembering the home where you read, “Twas the night before Christmas” to your children and that priceless look in their eyes.

It’s really not the act that you remember, it’s the feeling of that moment that you will never forget.

So, when you are at your home with those special people in your life, drinking your spiced coffee and hot chocolate, turn off that TV and talk about those special moments in your life that are etched in your mind.          

I guarantee there will be laughs and some happy tears!

This is what makes a house, a home.

After all, Tis the season to remember, that we're never far from home.

Local Market Conditions

Mortgage rates have fallen a bit to around 6.5- 7%. 

We just sold 2 homes in Lansing rather quickly, so there are still buyers out there.

Home prices have stabilized but the homes that need more work have actually dropped in value.

The mortgage market is showing signs of stability, according to the mortgage banker association.  (MBA).

• Mortgage applications plunged through the first 11 months of the year as rising interest rates cooled off the housing market — but they've stabilized in recent weeks.

By the numbers: Mortgage Applications rose 3.2% last week, compared with a week earlier, the MBA reported today.

What the MBA is saying: “The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months.

There are 3 scenarios we are watching:

1. If interest rates rise further, there will be less qualified buyers and home prices will fall as a result.

2. Sellers panicking about the market will try to sell and create a high supply of inventory.

This will lead to high supply and low demand which is the formula for falling prices.

3. If interest rates are low enough for an ample amount of qualified buyers, it will keep the real estate market healthy.

Based on our experience we believe that option 3 will prevail.

The key to having your home sell before your competition in a normal real estate market is to keep your home looking attractive and well cared for. These are the homes that sell first.

Official Winner of the Best Pizza in the area!

 Top 5 Area Pizza's according to Cathy & Jim:

5. Langel's thin crust.

4.  Doreen's thin crust.

3.  Sanfratello's thin crust.

2.  Arrenello's

1.  Lou Malnati's deep dish.

 Question: Have you had any haunted experiences showing vacant homes?

Answer: A colleague of mine told us this story of what happened to him earlier in his career. He was doing an open house in a vacant home built in the 1940’s. The previous owner had recently died. The family was selling the estate. At the conclusion of the open house, he began shutting off the lights. He was alone — or so he thought. As reached the main level, he saw a dark figure walking towards the main bedroom. 

A chill ran down his spine because he only had two people show up to the open house, and he saw both drive away. He went into the main bedroom, and no one was there. He checked every room in the house. There was nothing.

He said he was a bit shaken because he knew he saw something. As he went to the door to leave, it was locked, and it would not open. By this time, he was very concerned. As he went to the other door, the dark figure of that slumped man walking away reappeared. The dark man disappeared down the hall. 

He attempted to open the other door and it too was locked. He said he never locked any doors because it was an open house. He tried windows and they would not open.

He said he then heard a crash from the other bedroom. His fear made him follow the noise that sounded like a vase had fallen and broken. 

When he reached the bedroom, he felt a cold chill in the air. Written on the wall of the bedroom in a very eerie looking print, was the sentence: “This is my house.”                                                                       

He said he did not see these words on the wall when he walked through the home many times previous.

As he went back downstairs, he checked the door again. This time it opened. He went to the other door, and it too was now open. He left the home quickly and saw that black figure of a slumped man walking outside towards an outbuilding.

The owners said they did not come to the open house. There was something wrong and he wanted no part of it. He eventually dropped the listing. He said the home never sold and still stands vacant and in badly deteriorating condition.

Lansing Median Sales Price

 Another indication of a market slowdown.

 

Question: I'm trying to buy a home for the first time, did the usual contract, had the inspection done and found out the roof had four layers of shingles. The inspection report came out and stated the roof was not leaking, but structurally it was dangerous.

The sellers came back and said they will fix the roof, but increase the price of the house. That was a verbal, and we stated no because we did not expect to pay more for the house. 

To make a long story short, the sellers are two attorneys and they are now threatening us with legal action because they said nothing is wrong with the roof and they agreed to fix it anyway.

Answer: You need to get your own attorney and have him or her look at the purchase agreement and all disclosure statements. Most likely the building code requires that no more than two layers of roofing material can be used. The reason for this is to limit weight on the roof.  Too much weight could cause structural problems.

As to the seller's offer, it's a counter offer to fix the roof at your cost in the form of a higher price to which you have not agreed. What, exactly, is attractive about that?

 

I see their Point

 

From the World of Statistics

 The United States has the world's most extreme weather.

No other region of the world suffers from a combination of hurricanes, tornadoes, droughts, floods, blizzards, heat waves, and cold snaps.

Real Estate Market Update from Cathy and Jim. What you need to Know.

 What's Happening?                                    

It is still a sellers Market, meaning advantage sellers. Inventory is low and demand is still good. Interest rate movement will be the deciding factor in buyer demand.

Homes are still selling. It has slowed down due to interest rates and inflation. The most noticeable change was less multiple offers on homes and fewer over asking price offers. Sellers are still receiving excellent offers.

A borrower in January who took out a $300,000, 30 year mortgage at 3.2% pays $1,297 per month in Principal and Interest. 

Today, that $300,00 borrower would be paying $1,976 per month Principal and Interest at 6.9% Interest. That's $679 per month higher and $8,148 for the year!

But don't Panic. These Interest rates ups and downs have been cyclical.    (Please Click Read More)

2021 was the Best of the Real Estate Market

 Closed Listings in Illinois are down from 2021.

The enormous seller market over the past 2 years has diminished.

Higher Interest rates combined with soaring inflation has hurt the selling of homes in both States.

The market is much slower now in Illinois and Indiana.

Home prices will stabilize and decrease in some homes that are not as desirable.

The multi contract situations will not be common any longer, eliminating most of the bidding wars.

It is not all doom and gloom. Homes are still selling, people have to move and people still want to buy homes.

Buying a home will be easier due to lack of buyers.

With the unstable economy it is impossible to predict the market conditions in 2023.

Are you Living a Smart Life?

Food for Thought: By B. O'Reilly

Making foolish mistakes today can lead to misery. 

More than ever before, foolish decisions will hurt you.

Driving intoxicated can derail your entire life. 

Trusting someone with your money without legal documentation is simply insane. 

Acting impulsively in public will come back to punish you. It's almost guaranteed.

Therefore, personal discipline is needed in daily life. Do you really need that tattoo or that drug?

Is it smart to confide personal information to another person? 

How about your job - are you giving your best effort or gaming the system?

Never before has our society been more complicated and uncertain. 

Life is becoming exceedingly difficult. Many of us, especially younger Americans, are ill-equipped to face adversity.

Living a smart life is hard as everything worthwhile is. 

But if you don't try to do that - expect to experience major pain.

This is True

 

Interesting Piece from History

 Mortars are large, cannon-like guns that can fire enormous shells at great distances. In the final years of the Civil War, Union forces were trying to take Petersburg, Virginia, near the Confederate capital. 

When General Ulysses S. Grant failed to take Petersburg directly, he put the city under a long and grueling siege. He also subjected the city to continuous artillery fire.

 In this photo, we see Union soldiers standing on a bridge in Petersburg manning a giant mortar that they named “Dictator”. 

The largest mortar in the Union arsenal, the Dictator had a 13-inch bore and weighed over 17,000 pounds. It was too heavy to be used on the battlefield, and so it was best suited for defensive fortification  and for use in sieges. 

Each time it was fired, it used 20 pounds of gunpowder to fire a 218-pound shell up to 2.5 Miles. 

Compare this weapons technology of 160 years ago with the high tech military that we have today. Amazing!

Market Snapshot

 

Closed Listings are down in 2022 vs 2021.

1. Inventory remains low.

2.  Prices have stabilized.

3. Demand is lower.

4. Multiple Contracts still happen, but not like earlier in the year.

5. Home Sellers will still be happy with their selling price because Appraisers are still generous.

Breakfast has gotten more expensive.

 

Illinois New Listings Down from 2021

 

Market Update

• Homes are still selling fast. 
• The Market is not as hot as it was in the Spring.
• There are less buyers due to Interest rates. 
• Homes that look the best and are in better condition sell much faster and for TOP DOLLAR!
• Yes, it is still a Sellers Market.
• Covid has had very little impact to this current market.
• Monkeypox has had no effect.
• High Gas prices has had little affect on home viewings.
• Homes delivering Lake Michigan Water are more preferred than homes that offer municipal well water.

5 States with the Largest Population Growth

 Not a big surprise here. Funny how most people seems to be heading South away from the snow. 

Interesting Words from a former President and General

 “If we are to have another contest (civil war) in the near future…I predict that the dividing line will not be Mason and Dixon’s, but between patriotism and intelligence on the one side, and superstition, ambition, and ignorance on the other.” - President Grant, 1875

Interesting Chart on home prices since 1963

 

Chart shows that Real estate is slowing down in most areas of the country. Although the Midwest shows a significant increase in April, it has slowed down considerably in May and June in Northwest Indiana and NE Illinois. 

The economy, of course, is the biggest factor. 

We feel buyer demand will drop, and that prices will stabilize. 

We also think this real estate boom will slow down.

Price Increases in the Past Year

 

World of Statistics

@stats_feed

·

May 14

US price increases in last year: gas: +44%

airline tickets: +33%

used cars: +23%

hotels: +23%

suits: +22%

eggs: +22%

bacon: +18%

oranges: +17%

tires: +16%

furniture: +15%

milk: +15%

coffee: +14%

deliveries: +14%

bread: +14%

new cars: +13%

baby food: +13%

cereal: +12%

wine: +5%

Mans Best Friend

 

Lawn Mowest

 

Question: We are concerned about this housing market. Is housing going to crash soon?

While no one can 100% predict the future, many experts believe a housing crash will not happen anytime soon.

Here are some stats you may have not seen from the National Association of Realtors: In the past 120 days, we have seen the highest increase in mortgage rates. 

Mortgage rates are the highest in a decade. The job market is good, there are a lot of jobs out there.

Housing inventory is very low. Compared to a year ago, Active listings are down 14.1%.                        

New contracts signed are down almost 11%.                                                                                               

Pending listings (those homes that have sold, but not yet closed), are down almost 10%.                        

New listings are down 3.4%.  And homes are selling faster now then they were a year ago.

90 million Millennials (ages 19-39) are storming the market. Around 30% of the market is first time homebuyers.

The average family would need $30,000 more income than they would’ve needed a year ago, in order to purchase a median average priced home.

The market is so hot that 20% of the buyers make an offer immediately.                                                   

 82% of buyers are willing to compromise the move into an up-and-coming neighborhood, and             

71% would buy a smaller home if necessary. Remember, these are the buyers, not the sellers.

87% of the homes are sold in 30 days or less.

So rest easy, we are not close to a housing bubble and crash like in 2007. The way they wrote mortgages back then is completely different than the underwriting of today. Plus, there was an over supply of houses on the market. We do not have any of this today and job availability today is strong.

$6 trillion in home equity gains have accumulated in the past 2 years, according to the NY Times.

Congratulations! If you currently own a home, part of that $6 trillion is yours!

Keep Things in Perspective

 

Should I get an appraisal before putting my home on the market?

Answer:  

Even if you’re new to this whole selling-a-house thing, chances are good you’ve heard of a home appraisal. And if you know just a little about the process, you know that the appraisal—a value put on your home by an objective third-party expert—can make or break your home sale. So, with so much riding on this step of the home-selling process, you might be wondering: 

What does it hurt to go ahead and get an appraisal before you list?

While an appraisal is an important step in selling your home, there’s a reason it typically doesn’t happen until much later in the process.

Simply put, home appraisals are meant for the buyer’s lender more than any other party. If a buyer needs a loan to purchase your home, the lender will require an appraisal toward the end of the loan application process just to make sure the home is actually worth its declared value. The collateral for the loan is the home, so lenders require an independent appraiser to inspect it and advise on its value.

The market value is what someone is willing to pay for a property—often influenced by emotion and how competitive the area is. If someone really wants a property, they won’t care what the appraised value is, they simply want it no matter what.

While both real estate agents and appraisers use comparable sales (also called “comps”), and the two values often end up being similar, the market value is the one you should be most concerned with as a seller.

Real estate agents will use comps to pull recent data on other houses (that are similar to yours) to arrive at a market value. Agents will also do a walk-through of your property and talk with you before arriving at a number you both feel comfortable listing at.

The only good reason to get an appraisal in advance, would be if you have a unique property where similar properties (to compare to) are unavailable.

Appraisals are expensive, usually in the $300 to $500 range, and if you own a lot of land or a very large house, you may end up paying a lot more.

Our Local Favorites

 We are regularly asked about the top spots for Eating.

               Here are a few of our favorite places:

Lansing: 

Mancino Grinders for the best sandwiches. Hands down the very best!

Schererville: 

Longhorn Restaurant is excellent. Try their Wild West Shrimp appetizer. Their Parmesan Crusted Chicken is delicious.

G Gin Chinese restaurant is another personal favorite.

Lou Malnati Pizza, the Chicago Classic is our favorite pizza.

For Breakfast you can't beat The Omelette House.

St. John:

We love Livio's! Best food and atmosphere of any Restaurant in St John.

Lake Perch lightly breaded and baked is fabulous as well as the Chicken Florentine.

Their Soup is fantastic.