September 25, 2009 at 04:02 PM · Posted under Cathy Butschke
I heard a great commentary today about what qualifies as “news”: it is information that is either different from or a change from what everyone expects to hear. So what about the news? There is lots of news being reported about the real estate market these days. I keep hearing “on the news” that prices are up, home sales are increasing, things are better; certainly a different message than 6 months ago. Is it all true? Is what they are saying based on fact? Is the market turning, has it bottomed out? Are we on the road to recovery?
Let’s take a look at three indicators of where the real estate market is going in the next few months:
The accumulation rate.
The delinquency rate.
The cure rate.
Accumulation rate – now that’s newsworthy! Have you heard that term anywhere before? Well, I heard it today. I think we all know that the market has been flooded with more homes for sale than there are buyers. Guess what, folks: MORE HOMES ARE COMING. A recent study has shown that there are 7 million Americans SERIOUSLY considering putting their home on the market for one reason or another. (There are 20 million giving it some thought!) To put those numbers in perspective, there were 5 million American homes sold for the entire year last year. What happens when there are more homes for sale than can be sold? Market time goes up, and sales price goes down. Sound familiar? No real “news” there.
Now let’s take look at the latest stats on the delinquency rate and the cure rate for current mortgages. What am I talking about? I am talking about FORECLOSURES. This real estate market is all about foreclosures! In the past, about 45% of all owners who were delinquent on their mortgages were able to catch up, or “cure” their delinquency. How did they do this? Some took second jobs, some borrowed money from friends or family – whatever it took to get current on their mortgage payments. Under current economic circumstances - second jobs are hard to find, and who has money to loan to someone else? -less than 7% of these homeowners are able to catch up! WOW! That means that over 90% of the mortgages currently delinquent will ultimately go to foreclosure…i.e. more homes on the market, prices dropping. Again, I am having trouble finding a change to report…
Ok, what about Wisconsin? Wisconsin missed much of the trauma associated with the earlier busts in California, Arizona, Las Vegas and Florida. Why – because we are a little more conservative here. The extreme highs and lows in the market missed us. We are not, however, escaping the impact of unemployment. What happens when people lose their jobs? It becomes hard, and then maybe impossible, to make their mortgage payments. Guess what? Their mortgage then becomes delinquent, and only about 6.6% of them will be able to cure that delinquency and stay in their homes; the rest will face foreclosure, adding to the number of homes for sale, and again, lowering prices.
Perhaps the real “news” is that nothing has really changed: we aren’t at the bottom of the real estate market yet and prices will continue to fall…..
September 25, 2009 at 03:21 PM · Posted under Kelly Kuchta
Many sellers are faced with either dropping their price to unacceptable levels or having to rent their homes out. However, there are alternatives.
There is an increase of buying activity. Doesn’t mean we will see an increase in pricing. Don’t forget the supply and demand “Rule”. Supply is still bountiful. Price your home to sell now. This is your best chance as a seller to price it right and get on with your life and whatever has caused your situation to bring you to want to sell your home. Remember, you don’t want to help other listings to sell, you want the competition to help sell yours. For more information please call or email The Kuchta’s at kkuchta@shorewest.com, 414-651-1613 cell or office 262-437-5846 to help.
Are you thinking about selling your home? Wondering about where the market is headed and if now or next year would be a better time to sell? Or maybe you tried to sell earlier this year but were discouraged by the market and you’re now questioning whether you should try again?
Attend our free, no obligation Seller’s Forum/Real Estate Market Update to be held Wednesday, Sept. 30th from 6-7:30pm at our Oconomowoc office at 1296 Summit Avenue in Oconomowoc. You will learn where experts say that the market is headed and how to use that information to ensure that you don’t leave money on the table when selling a home.
Topics include:
Top market indicators
Where buyers are coming from
The mind set of today’s buyer
How the new appraisal law affects you
Question and answer period
Click below to hear Dan Ludwig, Sales Director and Assistant Vice President for Shorewest Realtors talk about what will be covered during the Forum.
Refreshments will be served. Feel free to invite a friend and please RSVP by calling 262.567.8351 or emailing bbrand@shorewest.com. We look forward to meeting you.
September 14, 2009 at 09:34 AM · Posted under Karen Trepton
If you are wondering where summer was in July, it waited to arrive in Wisconsin until September! We have been experiencing some absolutely beautiful, summer-like days over the last two weeks! My 7th grade son reminded me that in fact, summer doesn’t officially end until September 23rd. So thank you “Mother Nature” for serving up summer until the last possible second!
Summer is my favorite season. I’m a lake gal, always have been, and always will be. While at one of my listings, on Golden Lake this weekend, it looked and felt like summer, not the middle of September. Conversely, in spite of the balmy temps, the changing colors on the trees, the fog on the lake in the morning, and the ducks flying in their precise V formations, all point to the inevitable end of summer.
In my home, fall always marks the beginning of the New Year. I think the calendar year should be September to August. September is when I organize our household for the new school year; we start putting away the lake gear to prepare for winter; there is a renewal of schedules and activities; real estate is always rocking and I attempt to start a semblance of a fitness program. My “new year resolutions” are considered in the fall, not in the middle of winter. I take stock of my personal and professional goals.
With regards to real estate, sellers often wonder if they should wait until spring to hit the market. I am here to say, “Don’t wait!” If you need to sell, now is the time. Our market is no longer a fall/spring market place. The days of putting on a property in the spring, and pulling it in the fall, are over. Signs of price stabilization and improvement in the market are starting to be noticed, however, the big market picture predicts that overall market appreciation will not start in Wisconsin until 2012. This means that the pricing games of a few years ago will not be effective now. Sellers need an aggressive, accurately staged marketing and pricing program to achieve a successful sale.
The good news, and there is ALWAYS good news, is that sales are starting to creep up, buyers are actively looking, and agents in our Lake Country office are busier than ever! As reported in the Biztimes…
Shorewest sales up for third straight month
Brookfield-based Shorewest Realtors says its booked sales are up for the third month in a row. Shorewest said its booked units are up 26.7 percent, volume is up 11.5 percent and listings are up 6 percent.
“We’re excited to see our business increase over last year,” said Shorewest vice president of sales Ted Dentice. “Our sales associates are working extra hard to put sales together and with the help of our mortgage company - Wisconsin Mortgage Corporation - close them.”
“Our offices are busy,” said Joseph A. Horning, president of Shorewest. “Plus, we’re seeing more people in our open houses. I think people are realizing that now is a great time to buy whether it’s their first home or they’re moving up in home value. Prices are good and mortgage rates are still low. Plus, the $8,000 First-Time Home Buyer’s Credit is also still available through November 30. We’ve also just launched a new Job Loss Protection Program that gives buyers added confidence when purchasing a home.”
If you are considering a sale, call me. I’d love to show you how Shorewest and I can help you realize your new year’s resolution of a home sale, a reality.
Cathy Butschke
Many sellers are faced with either dropping their price to unacceptable levels or having to rent their homes out. However, there are alternatives.
This is your best chance as a seller to price it right and get on with your life and whatever has caused your situation to bring you to want to sell your home. Remember, you don’t want to help other listings to sell, you want the competition to help sell yours. For more information please call or email The Kuchta’s at 
Kelly Kuchta
Mary Steinke
If you are wondering where summer was in July, it waited to arrive in Wisconsin until September! We have been experiencing some absolutely beautiful, summer-like days over the last two weeks! My 7th grade son reminded me that in fact, summer doesn’t officially end until September 23rd. So thank you “Mother Nature” for serving up summer until the last possible second!
Karen Trepton
