House Prices: Window of Opportunity Beginning to Close

There have been conflicting opinions as to where housing prices are headed. We want to give our opinion on this subject for the short term. We believe Evanston sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on Evanston home prices throughout the rest of the year.

Why renewed downward pressure?

Any item’s price is determined by ‘supply and demand’.  In Evanston, existing housing inventory has dropped to historic norms in the last few months. However, an inventory of distressed properties, (foreclosures and short sales), have been coming to the Evanston market this year and will increase going into 2013. This inventory has been delayed for over a year as the Federal and state governments crafted an agreement with the five largest banks and mortgage servicers to establish a roadmap for how a foreclosure must be properly completed. That agreement, the National Mortgage Settlement, was earlier this year.

What Impact Will the Agreement Have on Foreclosures?

Brandon Moore, chief executive of RealtyTrac, explains:
“The settlement sets forth clear guidelines for lenders and servicers to follow when foreclosing, which should allow them to push through some of the delayed foreclosures from last year.”

How Many Foreclosures Could We Be Talking About?
Mark Vitner, a senior economist at Wells Fargo Securities tells us:
“The settlement helps the housing market in the long run because it allows banks to proceed with millions of foreclosures that have been stalled.”

What will this mean to Evanston home prices?
Distresses properties such as foreclosures and short sales are currently at 7% of the total Evanston market. As more of this inventory comes to market, it will impact Evanston home prices in two ways:
   1. It will bring to market discounted competition for buyers
   2. It will impact the appraisal values of all homes in the area

Bottom Line
There is a window of opportunity currently which Evanston sellers should take advantage of. Waiting until later this year will not guarantee a higher sales price. If anything, in many areas, it probably guarantees the exact opposite.

Selling your Evanston home can seem like a daunting process, but we’re here to answer any questions you have about selling your home. Your home selling experience should be one that leaves you feeling satisfied. Be sure to contact us today so we can put our expertise in the Evanston Real Estate market to work for you!

*Information taken from the KCM Blog

The Thomas Team
@ Properties

Chicago's #1 Real Estate Brokerage

Chicago & North Shore Real Estate
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How To Spring Clean Your Finances

Don't limit spring cleaning to your closets and cupboards-it's time to get your finances in order too! From reviewing your retirement plan to updating your budget, here are seven tips to help you freshen up your finances.


1. Check your credit
It's important to check your credit once a year. You need to make sure there aren't any errors dragging down your credit score. Free reports are available annually from each of the major credit bureaus at www.annualcreditreport.com. It's free, takes 10 minutes, and will give you peace of mind.

2. Update your budget
If you don't have a budget, make one. It will make managing your less overwhelming. If you already have a budget, make sure you update it once a year. Add any pay increases (or decreases) and adjust accordingly. Have a little excess money each month? Instead of blowing it on a weekend in New York City or a new dress you don't need, squirrel it away in savings.

3. Make a plan to cut your debt
Think of debt as clutter you need to put away. If you're carrying sizeable debts on your credit cards, it's time to make a plan to pay them off. Prioritize based on interest rate and balance and choose one to focus on this next year. This will keep your goal to reduce debt realistic and attainable. If you're expecting a tax refund, think about putting towards your biggest balance.


4. Review your retirement plan
When was the last time you peeked at your 401(k) or IRA? It's time to take a minute and review your investment strategy and make sure it still matches up with your retirement goals. If need be, chat with a retirement advisor about adjusting your investments to match your current risk tolerance.


5. Shred old documents
It can be hard to throw away or shred financial statements, but trust us; you don't need your bank statements from 2003. Outside of tax returns, which you should keep for five years as well as the supporting documentation and receipts, everything else can be thrown away after two years. Make sure you shred anything with personal info; just throwing it away can invite identity theft.

6. Make a will
If you don't have one already, there's no better time to make a will. If you die and leave no will, your assets may not be distributed as you'd planned and your estate will lose money trying to divvy it all out. If you already have a will, this is a good time to review it and make any adjustments based on new income or investments.


7. Review your stock portfolio
If you've been waiting for an investment to bounce back and it's been more than a year, it might be time to let it go. Holding on to stocks for emotional reasons instead of logical ones can end is disappointment-and huge losses of money. Make sure your investments are in line with your overall financial goals.

The Thomas Team
@ Properties

Chicago's #1 Real Estate Brokerage

Chicago & North Shore Real Estate

Visit Our Website

View Our Listings

Contact Us