Archive for the 'Investing in Real Estate' Category
Anyone Interested in Seconds… A look at 2nd Quarter Sales Data..
June 24th, 2010 categories: For Buyers, For Sellers, Investing in Real Estate, Market Data
Second Quarter 2010 Single Family Home Sales Data:
| County | Total Sales | Total # Foreclosure | Total # of Short Sales | Distressed Sales expressed as % of Total Sales | Active listings | # Sales in 1 Month | Absorption Rate |
| Cook County | 6,215 | 1,803 | 568 | 38% | 19,288 | 2,521 | 7.65% |
| Lake County | 1,402 | 351 | 134 | 35% | 5,833 | 619 | 9.42% |
| McHenry County | 604 | 149 | 89 | 39% | 2,912 | 253 | 11.50% |
| Dupage County | 1,538 | 240 | 123 | 24% | 5,568 | 671 | 8.29% |
| Will County | 1,312 | 319 | 141 | 35% | 4,595 | 513 | 8.96% |
In the second quarter of 2010, Foreclosure Sales and Short Sales together represent 24% -39% of all sales in each of the five counties researched.
There are three (3) times as many foreclosures than Short Sales in the second quarter of (April-June) 2010.
The Real Estate Market is still a buyers market. In each of the five counties surveyed it is taking anywhere from 7 months -12 months to close on a home.
The next few quarters for the real estate market will be challenging for several reasons.
The First Time Home Owners Tax Credit Expired April 30, 2010 and fewer qualified buyers are looking to purchase a home even though Mortgage Interest Rates are at a all time low.
There is speculation of a Double Dip in the Real Estate Market as a result of more Foreclosures come on the market. Right now the “Shadow Inventory” of foreclosures is paying attention to the abosorption rates discussed above.
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Pending Home Sales are The Highest Level Since March 2007
October 1st, 2009 categories: Investing in Real Estate, Market Data, Short Sales
Pending Home Sales are at the Highest Level Since March 2007. Short Sales and Complex Appraisals are causing delays in home sales from closing.
| County | # of Pending Sales | # of Pending Short Sales | % of Total Pending Sales | # of Short Sales Pending 100 + Days | % of Short Sales Pending 100+ Days |
| Cook | 5689 | 1058 | 19% | 700 | 66% |
| Lake | 1039 | 221 | 21% | 169 | 76% |
| Dupage | 1169 | 205 | 18% | 169 | 82% |
| Mchenry | 578 | 156 | 27% | 116 | 74% |
| Will | 1116 | 156 | 14% | 136 | 87% |
| Kane | 820 | 169 | 21% | 135 | 80% |
Summary:
Short Sales represent 14%-27% of all Pending Sales in all five counties.
66%-87% of all Short Sales are taking 100+ days to close.
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Cash Flow is King When Investing in Real Estate
July 31st, 2009 categories: Investing in Real Estate
You have heard Cash is King but how about Cash Flow is King.
If you are thinking about investing in real estate make sure you have cash.
After cash make sure your investment will give you cash back.
How much Cash should you invest is up to you but make sure what ever amount you invest you will earn a percentage of your money back each month in positive cash flow.
This is typically called Cash-On Cash Return. If you invest $100,000 and can earn back $10 K back each year your Cash-On-Cash return is 10%. This example would be a pretty good investment and should be compared to other returns like CD’s, Money Market Accounts, Stock Market, Savings Accounts, Bonds, where you can earn a return on your invested cash.
Since Real Estate is not as liquid as other investments your return should be higher. If after your analysis you will make less than other investments you should reject buying real estate.
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Foreclosures Are What People are Buying!!!
July 2nd, 2009 categories: For Buyers, Investing in Real Estate, Market Data
The second quarter statistics are showing that new Buyers are buying Foreclosures at a steady pace.
Almost 4 out of 10 sales in the second quarter of 2009 have been foreclosures.
The number of foreclosure continues to attract new home buyers.
| County | # of Single Family Sales | # of Short Sales | # of Bank Foreclosures | Percent of Total |
| Cook | 5606 | 426 | 2150 | 47 % |
| Lake | 1212 | 114 | 343 | 38% |
| McHenry | 578 | 79 | 140 | 38% |
| Dupage | 1363 | 233 | 137 | 37% |
| Kane | 796 | 93 | 204 | 37% |
| Will | 1216 | 127 | 398 | 43% |
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Investing in Foreclosures
May 13th, 2009 categories: Investing in Real Estate
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