Eileen Landau, ABR, CRS, e-PRO

From the Case-Shiller monthly report we now know that prices are down nationwide (19 out of the top 20 metropolitan areas) and inventory is up. And, we've yet to hit bottom. So, our Spring market may not have much spring in it.

Currently we see the following market statistics:

ACTIVE NAPERVILLE

SINGLE FAMILY LISTINGS

Bedrooms #Active Avg LP Avg Market Time

|---- ---- -------- ------- ----------- ----------

| ALL 1179 687,123 197 DAYS

| 2 23 378,084 179 DAYS

| 3 252 386,304 151 DAYS

| 4 749 691,067 203 DAYS

| 5 + 155 1,202,996 249 DAYS

And, only 47% of these active listings have sold in the past six months.

And, so, we have an increase in our inventory; increases in vacant properties; increases in REO; increases in pre-foreclosure homes and decreases in our prices. (Take a look at the previous months)

Where are the buyers? They're still renting or staying in their "old" homes watching the housing battlefield from the side lines. Prices haven't come down enough for them.

As long as they have a roof over their heads, they're staying put. And, when interest rates dropped earlier this year, many decided to refinance into a lower fixed mortgage.

Stats courtesy of MLSNI

Hot off the AP wire this morning:

The federal regulator for Fannie Mae and Freddie Mac said Wednesday it would lift restrictions later this week on the amount of mortgages the government-sponsored companies can hold on their books.

The Office of Federal Housing Enterprise Oversight, acting after Fannie Mae published audited financial results for 2007 on Wednesday morning, (which showed a BIG loss) said the two companies' mortgage investment limits, currently at around a combined $1.5 billion, would be lifted effective Saturday, March 1, 2008.

The caps were imposed in 2006 in response to the companies' multibillion-dollar accounting lapses, thereby limiting their participation in the market for securities backed by home mortgages.

So, what does that mean for us? It means that FHA can do more loans! Means that when we also get that increased mortgage amount some time next week, we will be able to start selling off more inventory.

FHA stilll does 3% down payment loans without requiring King Solomon's jewels or your first-born. Although there is a ton of paper work and forms to fill out! But, end result? You'll be more able to get a mortgage.

And agents? You'll be able to put more sales together. Now there's a pleasant thought as we head into our Spring market. And, how do I know that Spring's coming? Well, the Chicago Tribune is advertising their "Spring Festival of Homes" and is the Trib ever wrong? No, wait, does the Trib ever admit that they're wrong?

According to the Illinois Association of REALTORS, Chicago-Metro area home sales took their worst one-month plunge since at least 1998. The trade group said on Monday that January sales of both single-family homes and condos were off 34 percent, compared to the same month in 2007.

Thirty-four percent? That's over a third of the market, which leaves 66 percent of all properties on the market unsold. Ouch!

And, here's one reason why according to the Chicago Tribune:

"She, (the seller) too, blames January weather for dampening buyer enthusiasm. But she says she isn't in any particular hurry, and says she's sticking close to that asking price because it reflects how much profit she'll need in order to buy the suburban townhouse she has in mind, rather than what the market will bear in her neighborhood..."

The first rule of pricing that agents learn, is you don't price the property at X because the seller NEEDS that amount. The market doesn't work that way. Probably also explains why she hasn't had one showing in the past two months.

If you really want to sell in today's market, you must price your property at or below fair market value. It's the only way you're going to attract buyers, unless you want your property to remain unsold for years!

We will not be able to reach a bottom until these unrealistic seller are off the market. There's too much inventory and competition.

But, for you buyers, now is an exciting time. Lots of properties; lots of seller concessions. That's if, you can get a mortgage.

Lenders and their underwriters are asking that your application include either your first-born or favorite pet. Well, almost.

To paraphrase Tolstoy's opening sentence in Anna Karenina:

Happy real estate markets are all alike; every unhappy real estate market is unhappy in its own way.

Currently we see the following market statistics:

ACTIVE NAPERVILLE

SINGLE FAMILY LISTINGS

| Bedrooms #Active Avg LP Avg MT

|---- ---- -------- ------- ----------- ----------

| ALL 1035 717,751 221 DAYS

| 2 21 388,721 161 DAYS

| 3 210 391,757 167 DAYS

| 4 652 712,094 230 DAYS

| 5 + 152 1,237,860 264 DAYS

And, only 49% of these listings have sold in the past six months.

And, so, we have an unhappy market with extended days on market; increases in vacant properties; increases in REO; increases in pre-foreclosure homes.

Where are the buyers? They're still renting or staying in their "old" homes watching the housing battlefield from the side lines.

As long as they have a roof over their heads, they're staying put. And, when interest rates dropped earlier this year, many decided to refinance into a lower fixed mortgage.

It must be Springtime.

Illinois Deed Provider is again sending out their "official" letter offering to get your deed certified.

Save your money! In Illinois, you need a certified deed only in rare cases. And, in 30 plus years of selling real estate, I've never seen a certified deed.

So, rather than spend $59 to $89 (guess they've raised their costs) donate the money to a local charity and take the tax deduction.

And, oh, in case you're in another state and get a solictation from National Deed Providers or (Your State) Deed Providers...it's the same company. Just google their name and read what some of the recorders of deed have written! Amazing.

Last summer an attorney general in a southern state contacted me because he had 70 seniors who sent in their money for this nefarious service. He was angry and upset that seniors had been unnecessarily scared and used their funds to purchase such a document.

So, if you're an agent and a client or customers asks you what to do...tell them to google first, then talk to their own attorney. They'll appreciate that you're saving them money.