Hope things are going well….thought you might like a little information about the local real estate market PLUS something we saw from an expert that is very interesting and encouraging:

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“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”

– John Paulson 9/27/2010

WOW! That’s a powerful statement.

There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why.

Who is John Paulson?

Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

According to Forbes John Paulson is:

a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.

According to the Wall Street Journal Paulson is:

a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.

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What is going on in Rockford?  Price is still KING!   Homes are still selling in this area and interest rates are around 4.3% which is one reason Mr. Paulson may be so bullish on the homes market! When you factor in the large selection and low prices, this may be an opportunity we may not see again.  With the interest and tax deductions from income taxes, the effective interest rate may be around 3%.

Here are the latest statistics that just came out for the month of September.   Prices continue to fall a little more in our area.  Total listing inventory still high and the summer slowdown and total sales were up a little from August…. Supply and demand forces continue to drive prices downward.  As we move into the Fall market, Interest rates continue to be a bright spot…generally between 4% and 4.5% depending on the product and hopefully will bring buyers out.  The Fall market has usually been a very good time to be on the market.

The market information for September is as follows:

Month/Year                       Unit Sales            Ave. Sale Price                  Current Inventory           YTD Sales

Sept/2009                             364                        $123,962                           3475                                   2642

Sept/2010                             274                        $118,819                           3485                                   2644      

Sale Pendings (New sales ready to close) stand at 378 which is about the same as 380 last month.  We will continue to watch these and pass along the trend in the coming months.  Also, there were 81 Foreclosures that sold last month which is almost 29% of all sales in our market.  Short sales accounted for 8 closings or 3% of sales.  There is some good news about Embry Riddle considering our area plus other expansions and job creation around the area…but we continue to look for more.

Please call us if you know someone who is planning to move!

The latest information is for sales in March of 2009 shows 289 homes and condos sold in the area. This is 60% higher tham February and almost the same a last year March which may indicate overall improvement and a turnaround.  The first time homebuyer stymulus incentive from the government of $8000 has been encouraging action Plus at least one builder in the area is matching with another $8000.

Here is the latest information on the sales of homes and condos in the Rockford area.  We will be updating you periodically on the sales and trends in this area and will evolve over time to a newsletter format which we feel will better inform our customers and friends about this market. Comment below if you would like to have additional information included in the reports that we post in this web site. If you have questions of comments please email or call us at 815-494-0320. Your suggestions are welcome as we begin to build a format with information that will be helpful to you.

October 2008 Sales: 344                                         October 2007 Sales:  469
Average Oct. 2008 Sale Price:  $138,478                Average Oct. 2007 Sale Price:  $143,854
Total Listings Sept. 2008:  3456                               Total Listings Sept. 2007:  3462

Total Sales 2008 Year to Date: 3490                         Total Sales 2007 Year to Date:  5116

Sales have remained relatively steady through the last 4 months with totals of 369 for July and 373 for August, 370 for September....and, of course, October reported above at 344.  

Mortgages remain available for most buyers at favorable rates. The range of rates today stated below are approximate. Other programs are available including some for first time buyers.

30 Year Conv Fixed:  6.25% to 6.85%
15 Year Conv Fixed: 5.75% to 6.50%
FHA & VA 30 Year: 6% to 6.75%

If you have questions or need referrals for mortgage questions, just let us know.

The Top 5 Sales in Winnebago & Boone Counties for September were:

1654 Summerwood Ln. Belvidere, IL -- Listed: $999,999, Sold: $900,000. (5.85 Acre Estate in Boone County.)
2856 Lowden Rd., Oregon, IL -- Listed: $995,000, Sold: $825,000. (20 Acre Estate on Rock River, Ogle Cty.)
11155 Walton, Roscoe, IL -- Listed: $645,000, Sold: $595,000.  (Resale in Briarcliff area)
1980 Winding Priairie, Belvidere, IL -- Listed: $525,000, Sold: $465,500. (Resale in Boone Cty.)
9623 Pebble Creek Cir -- Listed: $469,000, Sold: $425,000. (Located in Stonegate of Boone Cty.)

This is the latest factual statistics.  If you know of anyone else who may want to review this type of information on a regular basis, please forward a link to our blog or email their contact information with email address and we will include them in future updates.