FLIPPER turned Landlord

The number of rental households increased by 1.4 million in the past 12 months!  That's 3,836 new renters per day.  This, according to Economist Commentaries on October 28th, is largely due to overly tight mortgage underwriting standards and elevated foreclosures that have forced distressed homeowners into renting. Higher demand has led to higher rental rates; an increase of 2.1 percent from this time last year. Higher rents translates into a better rate of return for real estate investors. This, coupled with the affordability of condos, apartment buildings and even houses, makes today a great time to call your investors and jump into the rental market. Economists are calling for higher rental rates in 2012, so all you Flippers out there who have been patiently waiting out the market, now is a great time to jump in, renovate (or not) and rent.

Delete Those Facebook Friends!

I read an article over the weekend in the March issue of Realtor magazine that made  me say "ARE YOU KIDDING ME?".  The article, "Less is Definitely More" talked about social networking and the point of diminishing returns. The article, written by the National Association of Realtor's social media manager, Todd Carpenter, talked about how he proceeded to unfriend about 1,000 people on his Facebook page, feeling that "having a friend shouldn't be taken too lightly". WHAT??? 

I receive at least five emails a week regarding real estate seminars, all of which have at least one speaker who talks about the HUGE importance of social networking. I attended one in which I felt so compelled to race home and set up a Facebook profile that I left the seminar early, missing refreshments, to get my social networking in order. "Social Networking" is the BIG buzzword in the real estate industry lately. Your business will crash and burn if you don't Tweet. The more Tweets the better, they tell you. Friend as many people as you can, they say. It's a numbers game, the more friends you have the better chance for more business. Then Todd turns around and tells me to unfriend. Please make up your mind.

How's The Market?

Being a real estate broker, I often get the question, "How's the market?" While I would love to respond, "IT'S GREAT, looking for a house?" we all know the reality. But, the truth is, the housing market IS showing signs of recovery in terms of sales volume.  Illinois sold 5,487 houses this past January, close to the 5,588 sold January 2010 but substantially more than the 4,808 sold in January 2009. Considering that the housing market in early 2010 was strongly influenced by the homebuyer tax credit, the sales volume for this past January is fairly promising.

The downward pressure on housing prices, however, is still substantial with Illinois seeing a 6.21% drop in median prices from last January (Chicago down 9.71%). There is still a great deal of distressed property flooding the market putting that downward pressure on prices.

On the positive side, buying a house still hugely affordable. In fact the housing price is trending back to the early 2000s. In addition, the 30-year fixed mortgage rate is still around 5%. So if you are renting, now is a good time to buy that first home. In fact, because the rental market has been hot, renters will likely see rental price increases, pushing consumers back into the housing market.

It's a good time too for investors. Whether buying rental units, multi-unit buildings or detached, single family homes, there are great deals out there, especially if you are a do-it-yourselfer. Turn around and rent that property instead of selling it. With renter households increasing by 3.5 million from 2006, there is a great demand for rental units.

The median house prices are expected to be higher for March and April than January for the Chicagoland area as well as Illinois. A good sign of recovery in the housing market. Let's just decrease the unemployment  rate and it's full steam ahead!

Please Vote!

I'm not one to push my political views on anyone and I'm not starting today. But if you are disgusted by the state of our state and its financial insolvency and ethical bankruptcy, please get out and vote. Get your mother, sister, husband and friends and vote.

The Chicago Tribune's Editorial stated it well: "George Ryan, Rod Blagojevich. Job creation 48th in the U.S. Public education spending 18th, but public education performance 38th." These are reasons enough to get your butt off the couch and VOTE!  Arm yourself with information (if you haven't already). There are resources out there to help you. DON'T rely on the TV ads you hear constantly to pick your candidates. I found good information on Congressional and Judicial candidates at www.pioneerlocal.com as well as candidates positions on issues at www.illinoisfamily.org. Whatever sources you choose, make your vote an educated one.

Looking for A Day Trip?

Try Starved Rock State Park. I did, just the other weekend when it was about 70 degrees and my boys were finally done with their fall baseball leagues. I thought, "What's a good outing with the kids on a beautiful, autumn day?" One of the prerequisites.... it had to be cheap. So I packed a bunch of sandwiches, the hubby and the three kids (one a grumbling teenager) in the minivan and drove the 1 1/2 hour ride to what is the biggest tourist attraction in north central Illinois. The park is located near 1-80 and I-39 in Utica, IL and best of all offers free entrance and free parking.

Bring your hiking shoes as the park in nestled within 2,630 acres of lush forest. There are many trails to choose from and if you go in early spring or after heavy rains, there are stunning waterfalls in the 18 canyons.  Although we enjoyed the hiking, there are also boat trips along the Illinois River, horseback riding, camping and fishing as well as cross country skiing in the winter. You can even bring your pooch along, although we opted out because our Collie and Pug bark at EVERYTHING including planes, moving leaves and other dogs.

We spent the better part of the day there and only spent money at an ice cream shop on the way out of town. It was a great way to spend the day with the family and get some fresh air. The cranky teenager wouldn't admit it, but I think he secretly enjoyed it as well.

Help With Your Mortgage

Many people don't realize the amount of help out there available to assist homeowners in these financially difficult times. Even if you are not immediately at risk of foreclosure, there are many options for consumers facing income reduction, for whatever the reason. Launched in 2009, the federal government created the Making Home Affordable Program (HAMP) to assist families.
Elements of the Program:
1.  The Home Affordable Modification Program:  This program is for homeowners who are at risk of defaulting or have already missed a payment. Eligible homeowners have the opportunity to modify their mortgages to make them more affordable.
2.  The Home Affordable Refinance Program:  This program gives homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance to lower monthly payments.
3.  Foreclosure Alternative Program: Provides alternatives for homeowners who can no longer afford their home and want to avoid foreclosure through a short sale or deed-in-lieu of foreclosure.
I encourage everyone to take advantage of the programs out there. You can find more info at www.MakingHomeAffordable.gov, www.hud.gov, www.nw.org, and www.illinoislegalaid.org. These websites have loads of information and phone numbers for help.

What Homeowners Are Looking For

According to a panel at the 2010 Internatioanl Builders show, homeowners are looking for:

1. Smaller Homes (With open concept floor plans)

2. Energy Efficient Appliances

3. More Natural Light

4. Outdoor Living Area With Private Backyard

5. Eat-In, Partially Separated Kitchen
6. Guest Bedroom and Bath

7. A Home Office That Multi-Tasks

8. Improved Home Electronics (Smart phones that can be connected    alarm systems, security camaras etc.)

9. Large Three-Car Garage

                                                     10.  A Low Maintenance Exterior