Jack's Blog » Investing in Real Estate

Anyone Interested in Seconds… A look at 2nd Quarter Sales Data..

Jack Lewitz — Thu, 24 Jun 2010 19:17:01 +0000

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.

Pending Home Sales are The Highest Level Since March 2007

Jack Lewitz — Thu, 01 Oct 2009 15:28:20 +0000

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.

Cash Flow is King When Investing in Real Estate

Jack Lewitz — Sat, 01 Aug 2009 05:23:32 +0000

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.

Foreclosures Are What People are Buying!!!

Jack Lewitz — Thu, 02 Jul 2009 15:56:48 +0000

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%

Investing in Foreclosures

Jack Lewitz — Thu, 14 May 2009 02:30:30 +0000

Click here to view the embedded video.