Real Estate Update

May 12, 2008

Real Estate has been heating up, a little. Tax refunds, tax rebates, and the summer market is upon us. The next 8 weeks promise to be the busiest time for real estate in 2008. The majority of the last six months there’s been approximately 120 homes in Roselle for sale. Right now there’s a 145! Not only that but there’s 118 homes in pre-foreclosure. Of those 118 homes maybe 20-25 are on the MLS (part for 145).

What do these numbers mean? Basically it means that there’s way more sellers then buyer. Which means what class? Remember supply and demand from economics 101? Yeah lower home values.

Not to totally freak you out the 118 homes in pre-foreclosure doesn’t mean that all those people will be losing their homes. They may have bounced their mortgage check or not made one months payment. It is however a real life indicator that an increasing number of families struggling to keep their credit clean on their biggest debt/investment.

To put things into perspective Roselle is a very small town in the Chicagoland suburbs. A neighboring town Schaumburg (home to Woodfeild Mall) has 241 homes for sale and 267 in pre-foreclosure. Yikes. There’s a very good chance someone on your street is going into foreclosure. There is on my street :sad:

Looking for advice?
- Credit: Guard your credit. Future home purchases will be based more on your credit score/history then on how much you have for a down payment. Get debt free ASAP. If you’re not debt free do yourself a favor and use that tax rebate to pay off some debt.
- Maintenance: Keep your home in good shape. If for some reason (such as job loss) you need to sell your home in a hurry, condition is the only thing that will help you get a good return on your biggest investment.

It’s a fabulous time to capitalize on the market if you can purchase a home non-contingent upon selling your current home. Banks are selling homes for approximately 80% less people mortgage.

May 12, 2008 | Filed Under Real Estate

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