Karen Schindler's St. Louis Real Estate Update

 

JUST SOLD!

 

We were able to help Chris and Lara sell this charming brick house in only 5 days!  We hope you both are enjoying your new home in Columbia, MO!

Congratulations to the new owners Michael and Stephanie!  Welcome to the neighborhood!

SOLD!

7542 Murdoch Ave. - Located in Shrewsbury

We helped Tim and Christine sell this house in only 19 days!  Congratulations!

 

Welcome to the neighborhood Jeff and Jennifer!

Chief Economist Shares Thoughts on Today's Market

With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it’s no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%.Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you’re selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market.Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year— much less than historical average returns for the stock market. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%. TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market.Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles.Too soon to tell, says Yun. It’s conceivable that taxpayers may have to cover some losses. It’s also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is “bailing out” homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates.Wrong. Yun explains: The Fed’s activities influence mortgage rates but don’t directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range. TIP: Today’s rates don’t look bad compared to the 10% we saw in the early ’90s and 17% in the ’80s.

7. It’s the wrong time to buy.Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It’s the right time for everyone to buy.No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one’s interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner’s budget to see if you’re ready to buy a home.

9. It’s a terrible time to sell.Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete.Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don’t have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.

EVERYONE’S HOUSE VALUE IS DROPPING, EXCEPT MINE

By: Amy Bohutinsky, VP, Communications | August 6, 2008 ZILLOW.COM

It’s a topic dominating the headlines, news shows and the race for president. You’d have to be living under a rock to not know the housing market is in distress and home values are dropping…. right?

Apparently not - at least when it comes to our own homes. Today Zillow released their Q2 Homeowner Confidence Survey — asking more than 1,300 U.S. homeowners their perception of their own home’s current value, as well as what they think will happen with their home and local market in the coming 6 months. The results were eye-opening, to say the least…

• 62% of U.S. Homeowners believe their home’s value has increased or stayed the same in the past year. In reality, 77% of U.S. homes have declined in value over the past 12 Months.

 This chart breaks out the difference in homeowner perception vs. reality by region.

Looking into the future, homeowners continue to be optimistic — about their own homes, that is. Three out of four (75%) homeowners expect their home’s value will increase or stabilize in the coming 6 months. However, when asked about their local market, 42% think home values in their locality will decrease (compared to the 25% who think this about their own home). Clearly we think it’s the neighbor’s house that will be affected, not ours.

Top Ten Seller Short Sale Questions ( Plus the Answers!)

Most Common Questions Sellers Ask

Number 10
I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score…is a short sale right for me?
Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9
If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?
The mortgage insurance is not there for your protection, just the mortgage lender's.

Number 8
Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?
No. Technically speaking there is no such thing as being "Short Sale Approved." The actual approval only happens with an accepted offer.

Number 7
I just missed a payment and I know I will miss more…how long does the foreclosure process take and is there time to do a short sale?
The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California its taking 6+ months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.

Number 6
Will I still have to pay property taxes if I do a short sale?
Property taxes will always have to be paid as part of any accepted short sale. Whether it's you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5
I owe more than my home is worth and I can't make the payment. Do I have to somehow qualify for a short sale?
The simple answer is NO. If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.

Number 4
Do I have to pay income taxes…I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me…the seller…is this true?
It WAS true, now it's not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3
How do you, my listing agent get paid…who pays your commission?
The bank will pay the commission along with all the other usual closing costs.

Number 2
Do I have to miss a payment to do a Short Sale?
No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holders.

Source: Broker/Agent News

January 2008 Webster Groves Real Estate Activity

Webster Groves Real Estate Activity

184 Homes For Sale

                 Average List Price = $295,065

                 Average Days on the Market = 127

48 Homes Under Contract

                 Average List Price = $252,056

                 Average Days on the Market = 147

31 Homes Sold & Closed In December 2007

Average List Price = $221,194

Average Sales Price =$211,605

Sold price average is 95.67% of asking price.

Average Square Footage = 1,652

Average Price Per Square Foot = $120.01

Average Days on the Market = 106

St Louis Real Estate Market Update

Volume: Most Active

1. Uninc. (North County) (1351)
2. Florissant (1030)
3. University City (701)
4. Uninc. (West County) (660)
5. Chesterfield (589)
6. Uninc. (South County) (589)
7. Kirkwood (571)
8. Jennings (561)
9. Ferguson (528)
10. Wildwood (525)

Volume: Most Improved

1. Huntleigh ( 100%)
2. Fenton ( 72%)
3. Oakland ( 56%)
4. Uplands Park ( 33%)
5. Frontenac ( 29%)
6. Vinita Terrace ( 28%)
7. Clarkson Valley ( 25%)
8. Wilbur Park ( 20%)
9. Twin Oaks ( 16%)
10. Country Club Hills ( 13%)

(Minimum 5 sales.)

Median Sale Price / '07 v. '06

1. Twin Oaks ( 56%)
2. Sunset Hills ( 48%)
3. Marlborough ( 42%)
4. Pasadena Hills ( 35%)
5. Creve Coeur ( 29%)
6. Uplands Park ( 23%)
7. Clayton ( 20%)
8. Olivette ( 17%)
9. Ellisville ( 16%)
10. Sycamore Hills ( 14%)

(Minimum 5 sales.)

Tables reflect sales data from Jan. 1 - Sep. 30.

	Transaction Volume			Median Sale Price
Community	2006	2007	Change	2006	2007	Change
Affton (CDP)	388	381	7 (1%)	$ 145K	$ 148K	$ 3K (2%)
Ballwin	501	401	100 (19%)	$ 226K	$ 222K	$ 4K (2%)
Bel-Nor	42	28	14 (33%)	$ 156K	$ 154K	$ 3K (2%)
Bel-Ridge	84	71	13 (15%)	$ 60K	$ 57K	$ 3K (5%)
Bella Villa	17	13	4 (23%)	$ 128K	$ 139K	$ 11K (8%)
Bellefontaine Neighbors	382	333	49 (12%)	$ 87K	$ 83K	$ 4K (5%)
Bellerive	1	2	1 (100%)	$ 398K	$ 242K	$ 157K (40%)
Berkeley	420	292	128 (30%)	$ 63K	$ 61K	$ 2K (4%)
Beverly Hills	27	29	2 (7%)	$ 64K	$ 54K	$ 11K (16%)
Black Jack	142	128	14 (9%)	$ 140K	$ 136K	$ 5K (4%)
Breckenridge Hills	160	119	41 (25%)	$ 72K	$ 68K	$ 4K (5%)
Brentwood	207	153	54 (26%)	$ 165K	$ 172K	$ 6K (3%)
Bridgeton	172	98	74 (43%)	$ 160K	$ 168K	$ 8K (5%)
Calverton Park	39	38	1 (2%)	$ 72K	$ 70K	$ 2K (3%)
Castle Point (CDP)	227	174	53 (23%)	$ 47K	$ 48K	$ 1K (2%)
Champ	0	0	=	$ 0K	$ 0K	=
Charlack	24	25	1 (4%)	$ 88K	$ 90K	$ 2K (2%)
Chesterfield	733	589	144 (19%)	$ 336K	$ 343K	$ 6K (1%)
Clarkson Valley	31	39	8 (25%)	$ 596K	$ 618K	$ 22K (3%)
Clayton	296	223	73 (24%)	$ 498K	$ 600K	$ 102K (20%)
Concord (CDP)	246	206	40 (16%)	$ 175K	$ 180K	$ 5K (2%)
Cool Valley	36	37	1 (2%)	$ 80K	$ 58K	$ 23K (29%)
Country Club Hills	68	77	9 (13%)	$ 57K	$ 59K	$ 2K (3%)
Country Life Acres	1	2	1 (100%)	$ 1.5M	$ 600K	$ 925K (61%)
Crestwood	226	186	40 (17%)	$ 180K	$ 178K	$ 3K (2%)
Creve Coeur	300	259	41 (13%)	$ 286K	$ 368K	$ 82K (29%)
Crystal Lake Park	14	6	8 (57%)	$ 430K	$ 225K	$ 205K (48%)
Dellwood	198	143	55 (27%)	$ 83K	$ 79K	$ 5K (5%)
Des Peres	116	114	2 (1%)	$ 373K	$ 356K	$ 18K (5%)
Edmundson	29	23	6 (20%)	$ 79K	$ 76K	$ 4K (4%)
Ellisville	146	130	16 (10%)	$ 206K	$ 240K	$ 34K (16%)
Eureka	203	170	33 (16%)	$ 240K	$ 229K	$ 11K (5%)
Fenton	25	43	18 (72%)	$ 240K	$ 272K	$ 32K (13%)
Ferguson	601	528	73 (12%)	$ 78K	$ 70K	$ 8K (11%)
Flordell Hills	57	55	2 (3%)	$ 51K	$ 52K	$ 0K (1%)
Florissant	1072	1030	42 (3%)	$ 114K	$ 115K	$ 1K (1%)
Frontenac	47	61	14 (29%)	$ 800K	$ 605K	$ 195K (25%)
Glasgow Village (CDP)	263	241	22 (8%)	$ 75K	$ 62K	$ 14K (18%)
Glen Echo Park	10	4	6 (60%)	$ 69K	$ 125K	$ 55K (80%)
Glendale	133	126	7 (5%)	$ 267K	$ 278K	$ 10K (3%)
Grantwood Village	12	7	5 (41%)	$ 315K	$ 357K	$ 42K (13%)
Green Park	35	36	1 (2%)	$ 150K	$ 154K	$ 4K (3%)
Greendale	18	15	3 (16%)	$ 95K	$ 96K	$ 0K (0%)
Hanley Hills	96	69	27 (28%)	$ 68K	$ 54K	$ 14K (21%)
Hazelwood	602	437	165 (27%)	$ 119K	$ 111K	$ 9K (7%)
Hillsdale	77	37	40 (51%)	$ 55K	$ 34K	$ 22K (40%)
Huntleigh	5	10	5 (100%)	$ 1.4M	$ 1.1M	$ 400K (28%)
Jennings	676	561	115 (17%)	$ 59K	$ 56K	$ 3K (6%)
Kinloch	5	0	5 (100%)	$ 32K	$ 0K	$ 33K (100%)
Kirkwood	712	571	141 (19%)	$ 210K	$ 210K	$ 0K (0%)
Ladue	169	149	20 (11%)	$ 675K	$ 718K	$ 43K (6%)
Lakeshire	17	6	11 (64%)	$ 210K	$ 204K	$ 7K (3%)
Lemay (CDP)	406	355	51 (12%)	$ 103K	$ 96K	$ 7K (7%)
Mackenzie	3	5	2 (66%)	$ 130K	$ 111K	$ 19K (15%)
Manchester	263	269	6 (2%)	$ 198K	$ 210K	$ 12K (6%)
Maplewood	160	133	27 (16%)	$ 141K	$ 146K	$ 4K (3%)
Marlborough	16	14	2 (12%)	$ 137K	$ 195K	$ 57K (42%)
Maryland Heights	416	356	60 (14%)	$ 157K	$ 155K	$ 2K (2%)
Mehlville (CDP)	474	333	141 (29%)	$ 145K	$ 149K	$ 4K (2%)
Moline Acres	81	73	8 (9%)	$ 82K	$ 77K	$ 6K (7%)
Normandy	88	97	9 (10%)	$ 76K	$ 62K	$ 14K (19%)
Northwoods	158	139	19 (12%)	$ 65K	$ 69K	$ 4K (6%)
Norwood Court	3	4	1 (33%)	$ 92K	$ 93K	$ 1K (1%)
Oakland	16	25	9 (56%)	$ 240K	$ 220K	$ 21K (9%)
Oakville (CDP)	524	399	125 (23%)	$ 226K	$ 210K	$ 16K (7%)
Olivette	140	154	14 (10%)	$ 225K	$ 265K	$ 40K (17%)
Overland	431	352	79 (18%)	$ 90K	$ 90K	$ 0K (0%)
Pacific	1	0	1 (100%)	$ 143K	$ 0K	$ 143K (100%)
Pagedale	133	104	29 (21%)	$ 55K	$ 63K	$ 8K (14%)
Pasadena Hills	17	17	=	$ 147K	$ 200K	$ 52K (35%)
Pasadena Park	14	10	4 (28%)	$ 108K	$ 100K	$ 8K (8%)
Pine Lawn	160	166	6 (3%)	$ 55K	$ 45K	$ 10K (18%)
Richmond Heights	153	144	9 (5%)	$ 225K	$ 216K	$ 9K (4%)
Riverview	118	107	11 (9%)	$ 62K	$ 55K	$ 8K (12%)
Rock Hill	112	114	2 (1%)	$ 172K	$ 158K	$ 14K (8%)
Sappington (CDP)	118	90	28 (23%)	$ 167K	$ 182K	$ 15K (9%)
Shrewsbury	110	93	17 (15%)	$ 171K	$ 165K	$ 6K (4%)
Spanish Lake (CDP)	504	428	76 (15%)	$ 100K	$ 92K	$ 9K (9%)
St. Ann	331	286	45 (13%)	$ 96K	$ 90K	$ 7K (7%)
St. George	44	26	18 (40%)	$ 112K	$ 112K	$ 1K (1%)
St. John	217	175	42 (19%)	$ 83K	$ 80K	$ 4K (5%)
Sunset Hills	151	101	50 (33%)	$ 235K	$ 349K	$ 113K (48%)
Sycamore Hills	22	16	6 (27%)	$ 87K	$ 100K	$ 12K (14%)
Town & Country	151	121	30 (19%)	$ 639K	$ 692K	$ 52K (8%)
Twin Oaks	6	7	1 (16%)	$ 147K	$ 230K	$ 83K (56%)
Uninc. (North County)	1671	1351	320 (19%)	$ 125K	$ 115K	$ 11K (9%)
Uninc. (South County)	710	589	121 (17%)	$ 175K	$ 180K	$ 4K (2%)
Uninc. (West County)	961	660	301 (31%)	$ 200K	$ 199K	$ 1K (1%)
University City	821	701	120 (14%)	$ 190K	$ 145K	$ 46K (24%)
Uplands Park	12	16	4 (33%)	$ 58K	$ 71K	$ 13K (23%)
Valley Park	136	110	26 (19%)	$ 178K	$ 168K	$ 10K (6%)
Velda City	55	46	9 (16%)	$ 69K	$ 67K	$ 3K (4%)
Velda Village Hills	39	23	16 (41%)	$ 67K	$ 54K	$ 14K (21%)
Vinita Park	57	49	8 (14%)	$ 60K	$ 68K	$ 7K (12%)
Vinita Terrace	7	9	2 (28%)	$ 115K	$ 50K	$ 65K (57%)
Warson Woods	28	29	1 (3%)	$ 368K	$ 334K	$ 34K (10%)
Webster Groves	469	392	77 (16%)	$ 214K	$ 208K	$ 7K (3%)
Wellston	52	40	12 (23%)	$ 55K	$ 44K	$ 11K (20%)
Westwood	4	2	2 (50%)	$ 642K	$ 598K	$ 45K (8%)
Wilbur Park	10	12	2 (20%)	$ 140K	$ 142K	$ 3K (2%)
Wildwood	684	525	159 (23%)	$ 357K	$ 360K	$ 3K (0%)
Winchester	34	34	=	$ 133K	$ 140K	$ 7K (5%)
Woodson Terrace	121	107	14 (11%)	$ 78K	$ 85K	$ 6K (8%)

Copyright © 2007 StLouis.BlockShopper

December St. Louis Area Real Estate Update

Happy December!  I hope this finds you enjoying this festive time of year! 

Here is a link to my "December Real Estate Update":

http://realtytimes.com/109/KarenSchindler

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month's issue includes topics such as:

"Should I Take My Home Off the Market During the Holidays?";
"How to Handle Low Ball Offers";
"Keeping Your Credit Clean";
"Investor Outlook";
"Reducing Utility Costs Doesn't Have to be High-Energy Task";

Plus a roundup of November real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

Now is the time!

Top 10 Reasons to List Your Home During December

10) You’ll get a jumpstart on the marketing & advertising for your home.  You can get ahead of the other sellers who are waiting until January or spring to list their homes.

9) You can sell now but specify a delayed closing date until next year if you so desire.

8) Showings can be restricted during personal & family events & you can still take advantage of your spruced up show ready home.  Why miss 45 days of opportunity to sell your home when you could request no showings on the 5 days that you are celebrating?

7) January is traditionally the month for people to transfer to town & begin their new jobs.  Transferees cannot wait until spring to buy.  Your home must be on the market for them to know it is available.

6) Many people have to buy before the end of the year for financial & tax reasons.

5) Buyers have more time available to look for a house during the holidays because they have more dedicated time off & many people have use it or lose it vacation time to take.

4) Buyers are more emotional during the holidays &often base their decision on the warmth & good feeling they receive when viewing your home.

3) Houses show better during the holidays.  With all the bright lights, festive décor & pleasing smells, when could your house possibly show better?

2) Serious buyers have fewer houses to choose from in December so properties on the market have less competition.  Fewer choices for them equals more money for you!

And the #1 Reason to list your home for sale in December is……..

1)      People who look at homes in December are serious motivated buyers & are more ready to make a decision to buy your home! 

PS.  The last time I put my own personal home up for sale my Christmas tree still up & decorations still out & it sold very quickly!  The winter advantage  worked for me & can work for you too!

6 Monarch Trace #303, Chesterfield, MO 63017

Stunning condominium in sought after Chesterfield across street from Aquatic Center, Central Park, walking trails & lakes. You can walk to the library, YMCA, theatre & are oh so close to shopping. This  lovely condo is a top floor unit in a secure elevator building. Enjoy the beauty of fall on the covered balcony overlooking wooded common ground with a lake view. The huge kitchen features 42 cherry cabinets, Corian counters with an undermount sink, smoothtop stove, space saving microwave rangehood & dishwasher. There is a lovely dining area between the kitchen & great room that could be formal or informal to suit your needs. The welcoming great room has soaring vaulted ceilings, a ceiling fan & beautiful view. The master suite has a private bath, vaulted ceilings, ceiling fan & door to the balcony. The 2nd bedroom is spacious too! Private in unit laundry with washer & dryer included! Storage locker on same floor. Make this condo you home today!

Click Here for More Photographs