November, 2009

Mr. Yun anticipates a further spike in November, followed by a lull in December into early next year, but we may look forward to another similar rush in spring and summer of next year as the extension clock counts down to June 30th.

Historically low interest rates are also boosting the market. Mortgage rates last month were the 3rd lowest on record since 1971, and clearly, today’s buyer will be able to carry substantial savings decades into the future.

All in all, plenty of good news to be thankful about, on Thanksgiving weekend, 2009!

The biggest jump? The Midwest — existing home sales there surged 14.4% in October, and that’s not all! Sales in the nation’s mid-section were up nearly 30% over the same month a year ago! And, prices in the Midwest rose in the past year, 1.1%.

Moving on now to the South…existing home sales there rose nearly 13% in October. A big jump…and bigger still when you compare it to a year ago…from October to October sales in the South jumped nearly 26%! Prices were down year-to-year…by just over six percent.

In the Northeast, sales in October also increased by double digit margins — up 11.6% over September, a level that is nearly 28% higher than a year ago. There was a price dip, however, down about 2.5% over last year.

And ending up in the West, a 1.6% increase in existing home sales, in October over September. And year-to-year, existing home sales were up 12%. Prices however, were down 14.7%, October to October.

So what’s it all mean to you? Well, prices are lower in many parts of the country compared to last year, but as we’re seeing in the Midwest, some areas are experiencing price gains! And that’s a good sign. And this big surge in sales also represents a big drop in inventory! And the lower inventory gets? The sooner we’ll be back to a normal real estate market.

Obviously it depends on where you look. We picked four cities: Bloomington, Indiana; Columbia, South Carolina; Portland, Oregon; and Arlington, Virginia to see what you can get for the money.

Bloomington is definitely a college town, being home to Indiana University, and also modestly sized with a metro area around 175-thousand people. You’d expect to get a fair bit for our asking price and you do. On average 170-thousand dollars will buy you a three to four bedroom house with two baths, and between 15-hundred and two thousand square feet. Most of the homes come with full basements, too! Also, most of the homes we found in this price range were exclusively single family dwellings, with only a sprinkling of condos.

Columbia is the state capital of South Carolina, and one of the oldest cities we’re looking at today, being founded in 1786! It was recently named one of America’s 30 Most Livable Communities, and has also been recognized for being a great city to retire to by Where to Retire Magazine. It’s known for its affordability, and it doesn’t disappoint.

For our 170-thousand dollars, we found out you get can get a whole lot of house. On average, three-to-four bedrooms, and from two to three thousand square feet! If you’re looking for a condo instead of a single-family home, you can find everything from three bedroom townhomes, to a two bedroom in a high rise building over-looking the city.

Portland is fast developing a reputation as a green city, and is also home to two corporate giants, Nike and Intel. And while 170-thousand dollars doesn’t go quite as far in Portland as in our other cities, budget shoppers can take heart. You can still find some decent digs for the money.
On average that money will get you an older single family home, ranging from one thousand up to about 15-hundred square feet, with two to three bedrooms. If you’re looking for a condo, you’ll have more properties to choose from at this price level. And you’ll find the sizes about the same as the single family homes, but with newer construction: again, usually two bedrooms, and two bathrooms in a high rise, three bedrooms in a town house.

Can you actually find anything on the east coast under 200-grand? Well, the answer is yes, as long as you’re not looking to house a family of four.
We checked the listings in Arlington, Virginia, and we found exactly seven listings in our price range, just below and just above 170-thousand dollars. They were all condos. All but one were a thousand square feet or less, and all had two or fewer bedrooms, which is just fine if you’re living on your own or as part of a couple. Keep in mind, Arlington has a lot to offer, too. It was recently named by CNN Money as the most educated city in America, and has also been called the most walkable city in the country by the American Podiatric Medical Association. It’s also ranked high among the twenty U.S. counties with the highest median household income, as well, so no surprise that home prices might be a bit higher here.

So, there you have it. Four cities, one price, and four different ways to find out what you get for the money.

We researched all of our listing on the website of the NATIONAL ASSOCIATION OF REALTORS®. If you want to find out how much you can get for $170,000 in your area, go to www.realtor.org to find out!

Chris McCarthy is an extraordinary woman. She won the 2009 HOPE Award for helping minorities achieve home ownership! But she might say someone like Gail Horton is more extraordinary. Gail is an early education teacher, and she is also a beneficiary of Habitat for Humanity. Gail moved into her home seven years ago, with the help of Habitat, but also by working through 550 sweat equity hours, taking classes and working on other people’s homes.
And she says every moment was worth it.

Chris holds Gail up as an example of how well Habitat for Humanity works, and why home ownership is so important.
Unfortunately, the economy is making it tougher for Chris and Habitat for Humanity to continue helping people. While donations are dropping off, more and more people are needing help.

Chris pointed out that home ownership builds strong communities in more ways than one. Not only does it help foster a sense of closeness and familiarity in neighborhoods, but home owners also pay property taxes, which in turns helps build stronger cities!

Families who want to get a Habitat for Humanity home must go through a screening process, as well as take classes in home ownership, as well as help build other Habitat homes before they can start construction on their own.

But as Gail says, it’s so worth it!

Chris McCarthy is CEO of Nashville Habitat for Humanity. If you want more information on how to donate, volunteer, or other programs offered by Habitat for Humanity, visit www.habitat.org