The Holiday Spirit

The Holidays are upon us and there are signs all around; the hustle and bustle of the stores and shopping centers, the holiday greetings that fill our mailboxes and brightly colored lights strung among branches and shrubs all remind us of the holiday season.

I also see the Salvation Army "bell-ringers" and I'm reminded that not everyone will have a "Happy Holiday".  Each of us knows someone in our lives who has had a difficult event or circumstance is 2011.  I say this not to lessen your holiday cheer, but to perhaps nudge you to give a little of YOU this holiday season.

A simple phone call, a pat on the back or a handwritten note can mean the world to those who may be struggling this year.  Even a simple smile can lift someones spirits.  It is better to give than to receive.  And there is no greater gift than you!  Happy, Happy, Merry, Merry!

Distressed Sales

In an earlier post I mentioned that we have begun to see a few more distressed sales on the near West Side of Madison. While other parts of the country have seen LOTS of distressed sales, we here in Madison have been more insulated.

I should explain that distressed sales can be "short sales", where the homeowner owes more than the fair market value of  the home.  Distressed sales can also be foreclosures, where the bank has repossessed the house.

In the last few months we have seen a couple of distressed sales, two that I know of in Sunset Village.  I'm sure a tragedy of the economic times we are in.

The housing experts tell us that banks have been holding back the distressed property so as not to further deflate an already depressed housing market.  Word on the street is that many of these banks will begin to release these properties on to the market in the coming months.  Perhaps we are seeing the beginning of that trend now.

For investors with cash flow, there are deals to be had.  For those thinking of selling in the next 6-12 months, not such good news.  The distressed sales will be used as comparables, which could and probably will, decrease the value of the sellers home.

I wish I had a crystal ball so I could forecast the outcome of our current economy, but of course, I don't.  The best advise I can give is that if you, or someone you know, is considering selling your home in the near term it would be wise to get out on the market early, before the banks begin to release more distressed property.  If you currently have a home on the market, be sure that it is priced competitively and shows exceptionally.  That's what it takes to sell today!

No "Looky-Loo's"

I held an Open House a few weeks ago for a colleague of mine.  It was November and I brought a good book, thinking I'd be spending more time reading than greeting potential new home owners.

I have to say, I was pleasantly surprised!  In a two hour span, I had eight parties come through the house.  These weren't "looky-loo's" as they are sometimes called.  These were people looking to purchase a house.  One party came through with their Realtor, another party came through and they were mentally placing their furniture in the house, still another was asking questions a potential home buyer would ask.

I know, you are saying to yourself, "so what?".  Well, what's fascinating is that it was November!  As we approach the Holidays, people are typically thinking about buying holiday gifts, not homes.  But with our current housing situation (lots of inventory and low interest rates), people are thinking of buying a house this time of year, too.  And they are out there looking to see what will work for them.

November Homes Sales

When you look at the entire West Side of Madison, there were 86 homes sales in November.  Not horrible for a month that typically sees the housing market begin to slow.  We certainly aren't back to pre-recession levels, but we may never be.  Several of those homes had been on the market for more than a year.  As the economists have continued to say, this may be the "new normal".

In my neck of the woods, the near west side of town in the neighborhoods of Sunset Village, Westmorland and Dudgeon -Monroe, there were a total of 8 sales last month.  Again, not horrible.  What is interesting is we have seen some houses sell this month, and some that will close in December, that have been on the market for a while.  Some for more than six months!  Does that mean perseverance pays off?  Maybe.  Does it mean that price continues to be the driver? Maybe.  Does it mean that buyers are taking their time to find just the right house?  That may be true, too.

What these statistics mean to me is that even in November, as the Holidays approach, there are still people who want to sell their home and there are people who want to purchase a home.  It's finding that match that's the tricky part!

It's also interesting to note that one of the sales in Sunset Village was a distressed sale.  While we have heard about distressed sales around the country, we haven't seen any in these neighborhoods until now (more on that in an upcoming post).  We also continue to see that when the price is right (typically lower), the homes sell quickly.

Here's what sold in November:

Sunset Village Home Sales-November

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
222 S. Midvale	$179,500	$169,900	$164,500	91%	97%	223	39
3725 Ross St.	$239,900	$179,900	$170,000	70%	94%	119	15
13 Hillside Terr.	$235,000	$235,000	$235,000	100%	100%	0	0
306 Blackhawk	$249,900	$249,900	$240,900	96%	96%	32	32
Average Total	$226,075	$208,675	$202,375	89%	96%	93.5	21.5

Dudgeon-Monroe Homes Sales-November

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
3126 Gregory	$315,000	$315,000	$280,000	90%	92%	86	86
609 Glenway	$179,000	$174,000	$160,000	89%	91%	38	14
Average Total	$247,000	$244,500	$220,000	89.5%	91.5%	62	50

Westmorland Home Sales-November

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
4114 Meyer	$238,900	$238,900	$242,000	101%	101%	5	5
19 Frederick Cir.	$319,900	$289,900	$274,000	85%	94.5%	42	29
Average Total	$279,400	$254,400	$258,000	93%	97%	23.5	17

Hoyt Park Area Scavenger Hunt

Do you remember scavenger hunts when you were a kid?  The idea was to be the first to gather a list of unusual items such as toothpicks, paperclips, or a plastic utensil.  I remember my mom would give my friends and I a list and send us out the door.  I also remember that it forced me to learn about the neighborhood I lived in, meet my neighbors and it was fun!

The Hoyt Park Neighborhood Scavenger Hunt is not so different.  The idea is to have some fun, become engaged in your neighborhood and learn some interesting facts about the area.  Participants won't be looking for toothpicks or paperclips, but they will be looking for things like the highest point in the Hoyt Park area and the name of the current alderperson.  Answers to the questions can be found by talking with neighbors, searching online or exploring the neighborhood.  For a list of questions and further information visit the website.

Oh, and by the way, the first hint will be given at the Hoyt Park Area Joint Neighborhood planning meeting at 6:00 p.m. December 6, 2011 at the First Baptist Church (basement meeting room).

So check out the list of questions and get out there and hunt!

Hoyt Park Area Joint Neighborhood Plan Meeting

The Hoyt Park Joint Steering Committee has been hard at work over the last few weeks consolidating data, maps, neighborhood survey results and information gathered at the first public hearing.  All of the information can now be found in one handy location.  Please visit the website to find out additional background information such as a series of maps which show existing conditions of the neighborhood such as Age of Single-family housing, 2011 Assessed Value of Single-Family Housing, and Existing Location of Bike Routes, Sidewalks, and Bus Routes. 


In addition, the committee has been busy planning for the next public meeting scheduled for December 6, 2011 at 6:00 p.m. at the First Baptist Church, 518 Franklin Street.  The meeting will include a summary and overview of the key issues impacting the neighborhood, as well as a presentation of a preliminary plan.  The preliminary plan will include redevelopment concepts for University Avenue, Midvale Boulevard, Mineral Point Road and the Hoyt Park area. Small group neighborhood discussions of the presented plan will follow the presentation.


This offers an excellent opportunity to meet and visit with neighbors, get involved in the discussion as well as provide input on the future of this great neighborhood.  Hope to see you there!   

Sales Up, Prices Down

Homes sales in Wisconsin continue their upward trend in October, for the fourth straight month, according to a report by the Wisconsin Realtors Association (WRA).  Existing homes sales increased 13.5 percent on October 2011 compared to October 2010.  Home sales in the third quarter are well above depressed levels in 2010.

The Federal Tax Rebate Program of 2010 had a depressing effect on home sales in the first half of 2010, but sales in the second half of this year look much stronger by comparison.

The median price for a home in the state dropped, however.  The median price for a home in Wisconsin was $129,000 in October, down 7.8 percent from October 2010.

The report also indicated that the affordability of housing in the state is high right now, with the median family income able to purchase 243 percent of the median priced home in the state.

Low interest rates, hovering near 4.7 percent for a 30-year fixed-rate conventional home mortgage, along with low housing prices are driving the sales.

The Face of a Buyer

I've often wondered who is out there buying houses.  Sure, interest rates are at all-time lows and there is plenty of inventory to choose from, but who are these people?


The National Association of Realtors (NAR) recently released a report that tells us exactly who these people are.  And the results may surprise you.


According to the NAR, the face of the buyer has changed, even from a year ago.  Today the largest share of home buyers is aged 25 to 32 at 27 percent.  However that buyer age group is down 9 percent in the last year, a considerable drop for a group that continues to dominate the buyer pool. 


A shift in income levels
The median age of home buyers has jumped from 39 years old to 45 years old as first time home buyers have dropped to a third of all buyers, down from half of all buyers.  Older, more stable buyers are accounting for more of the market as younger buyers are staying where they are.


A shift in buyers' income levels
The median household income of buyers in America is now $80,900, an increase in income after the previous two years' decline.  Lending remains tight, which may actually account for why people with higher incomes are capable of qualifying for (and actually closing on) a home purchase.


A shift in married couple buyers
For ten years, more and more single people were buying homes as married couples' purchases dropped by 10 percent in that time.  However, but over the last year, this trend was broken.  In 2011, NAR reports a distinct drop in single home buyers as the share of married couples rose to 64 percent, the highest number since 2001.
In addition, the number of single women buyers has slowed.  Only 10 percent of home buyers were single women, the smallest share in six years.


The Takeaway
According to the 2011 NAR Profile of Home Buyers and Sellers, the average American buyer is now older, has higher income and is likely married.  Single and lower income buyers are sitting on the sidelines as unemployment continues to be a concern and lending guidelines remain tight.  In the end, the study shows that home buyers are now "staying well within their means".


The NAR Profile of Home Buyers and Sellers surveyed 5,708 home buyers and sellers last summer.

October Home Sales

As the November winds blow, I am gathering information about home sales in October in Sunset Village, Westmorland and the Dudgeon-Monroe neighborhoods.  Like the weather outside, sales in October have cooled.  In fact, there were no home sales in Westmorland last month.  That was actually a bit of a surprise to me, since Westmorland has been a fairly hot neighborhood  for the last few months.

If people aren't buying homes, are they at least looking?  I wondered.  So I did a little research and found that showings (a Realtor taking a buyer to view a house) have dropped considerably, too. During the month of October, there were only three showings in these three neighborhoods.  This figure doesn't include open house traffic (watch for another blog post on that in a few days).  Year-to-date, there have been 99 home "showings" in Westmorland, Dudgeon-Monroe and Sunset Village.  There have been a total of 48 home sales in these three neighborhoods since the beginning of the year.  Which means sales are roughly half the amount of showings.  Does that mean that we'll have 1.5 sales next month?  We'll see what happens...stay tuned!

Here's what sold in October:

Sunset Village October Sales

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
314 S. Midvale	$199,900	$199,900	$175,900	87%	87%	57	57
313 Karen Ct.	$259,900	$229,900	$210,000	81%	91%	426	24
	$334,900	$314,900	$300,000	89%	95%	44	14
Average Total	$264,900	$248,233	$228,663	86%	91%	176	31.6

Dudgeon-Monroe October Sales

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
2204 Eton Ridge	$349,000	$339,000	$315,000	90%	92%	126	93
Average Total	$349,000	$339,000	$315,000	90%	92%	126	93

Try Hockey For Free Day

My kids have been involved in youth hockey for more than a decade.  When I registered them years ago, the goal was to have them learn to skate.  My philosophy was that if you live in Wisconsin, you ought to know how to skate because even if there isn’t snow (which hasn’t been the case in recent years), it’s always cold enough for outdoor ice.  What a great outdoor winter activity. 

Fast forward to today.   All three of my children – one of them a daughter - not only learned to skate, but they have continued to play the sport.  It has granted our family weekend getaways to tournaments, family time at games and time together on area outdoor “ponds”.  Perhaps most importantly, it has created a wealth of life-long friendships that I wouldn’t give up for the world.

On Saturday November 5 from 1:00 p.m.-3:00 p.m. there is a program called “Try Hockey For Free” Day at Madison Ice Arena on Forward Drive.  Sponsored by the West Madison PolarCaps Youth Hockey program, in association with USA Hockey and Madison Ice, Inc., the event is open to boys and girls ages 8 and under.  Polar Caps coaches and members will be on hand, along with local High School players, to introduce kids to the great game of hockey.  Kids will be able to try on hockey equipment, participate in various on-ice activities and see how much fun the sport can be.  Refreshments and prizes are part of the event, too.  Parents will have an opportunity to talk with coaches and other parents about the the organization, the sport and how to get involved.

To pre-register for the event, please go to http:www.tryhockeyforfree.com/or contact Tim Olander at polarcapsrecruiting@gmail.com

My family’s youth hockey days will be drawing to a close in the next few years, but I know I will have years of skating together on outdoor ice to look forward to.  And plenty of friendships, too.

Neighborhood Halloween Gatherings

There are many people who view Halloween as a scary night, but according to the U.S. Census Bureau, 92 percent of households consider their neighborhood safe.  In addition, 78 percent beleive there is no place within a mile of their home where they would be afraid to walk alone at night.

I count myself in those statistics.  How awesome is that!  I also count myself lucky to have little ghosts and goblins knocking on my door looking for Halloween treats.  For me, Halloween is the last "holiday" before the snow flies.  I know Thanksgiving often sneaks in, often before the first snowfall, but Halloween is like the last hurrah before winter hibernation.  It's the last time I see many of my neighbors on a regular basis until the longer days of spring arrive.  For that reason, Halloween holds a special place in my heart.

In addition to the traditional trick-or-treating on the 31st, there are a few other neighborhood Halloween gatherings in my neck of the woods this year.  The Sunset Village Halloween Parade is scheduled for Sunday October 30th from 2:00-4:00 p.m. at Sunset Park.  Food will be available courtesy of Tex Tubbs/Cactus Ranch.

If you are up for more parading, the Westmorland Halloween Parade & Party with the Gomers is planned for October 30th beginning at 4:00 p.m.  The parade will begin at Westmorland Park and wind it's way through the neighborhood to Queen of Peace School.  Kids will be part of the entertainment this year at The Gomers Rockstar Kiddyoke!

Whatever you decide to do this Halloween, I hope it is an enjoyable holiday for you. I hope you are able to raid your kids' Halloween buckets.  And I hope you are part of the 92 percent of Americans who feel safe in their neighborhood!

Knittin' a Mitten

Every year, little hands go un-gloved as winter arrives.  Four years ago, two Midvale Elementary School moms decided to take matters into their own hands.

The two women started Knittin' A Mitten for Midvale, a community event that has local knitters from the Midvale-Lincoln parent community and the surrounding neighborhood knit mittens for the school children at Midvale and Lincoln Elementary Schools.  The first year, the group knit 250 pair of mittens!

With more little hands that need mittens each year, the group continues to knit mittens for students.  This year's Knittin' A Mitten kick-off is scheduled for Monday October 24th from 6:30-8:30 p.m. at the Midvale School Library.   If you are a knitter and would like to help out, plan to stop at the kickoff.  It offers an opportunity to socialize with other knitters while helping those in need.  The group will have yarn and beginner-level mitten patterns available.  Don't know how to knit?  No problem, experts will be at the kickoff to help.  Or, you can offer support through a donation of yarn.  Knittin' A Mitten is a great program to keep little hands warm this winter.

Halloween Decorating Made Easy

"Recycled" brooms add a touch of whimsy to the witch graveyard.

Americans spend more than $50 a year (per person!) on Halloween.  From costumes to candy, Halloween is surpassed only by Christmas as the holiday with the largest cash outlay.

Not there is anything wrong with that if ghosts and goblins are your thing.  But there are inexpensive ways to celebrate and decorate for this ghoulish holiday.

Creativity is the key.  Pumpkins, gourds, and squash are relatively inexpensive and in ample supply at this time of year.  Bales of hay and potted mums are also easy to find.  In fact, you can find lots of decorating items at the farmer's market, Home Depot and Menard's, or the grocery store.

Plethora of fallen leaves are perfect for stuffing a scarecrow or a "dead body".  Cardboard boxes can be re-purposed into gravestones.  And a little chalk can go a long way in marking a long driveway or sidewalk with dead body outlines.

One of the easiest and scariest decorating techniques is silhouettes.  Hanging in the window in the shape of crows, bats or witches, these old-world decorating methods also lend old-world scariness to the holiday when the objects are back lit with a spotlight or lamp.

Whatever you decide to decorate with, make it fun and easy.  No need to break the bank.  After all, it's only a few pumpkins and spiders!

What Do 13,780 Families Do Every Day?

I have a client who will be writing an offer on his first house today.  He has been waiting until just the right time.  He looked into purchasing during the First Time Home Buyers Credit program last year, but decided to wait.  Today, he said he was glad he was patient.

My buyer has joined the 13,780 U.S. home buyers who think now is a good time to purchase a house.  Each day 13,780 families will purchase a house.  That's 13,780 homes yesterday, 13,780 homes today and 13,780 homes tomorrow.  That's up nearly 20 percent (18.6 percent) over last year.  So what makes these people make the decision to purchase now?

According to Steve Harney, a national real estate expert and speaker, prices have dropped to below "pre-bubble" prices.  At the same time, interest rates continue to be at record lows.  Home buyers today can purchase the same $200,000 house at the same price and save more than $200 a month!  At the same time, rents continue to climb!

Home ownership is a long term investment.  It was never meant to be a short-term investment.  I think the public is reverting back to that philosophy.  According to a Pew Research Center Survey, 81 percent of people view owning a home as the best long term investment.

Other surveys indicate people have pretty strong feelings about owning a home. According to Fannie Mae's National Housing Survey, 95 percent of respondents see home ownership as a positive experience.  A 2011 Gallup Poll showed 69 percent of people think now is the time to buy.  And eighty-eight percent of people continue to view home ownership as the American Dream, according to the New York Times & CBS News Survey.  My client is one of them!

September Home Sales

Typically, the housing market begins to slow down during these autumn days.  In September, we did see a little slow down in the market, in terms of houses sold.  Listings, however are actually up a little.  It continues to be a buyers market and even in Westmorland, Sunset Village and the Dudgeon-Monroe neighborhoods, where we have seen the housing market fairly stable, the inventory outweighs the buyers writing offers.

For instance, during September, there were six homes that sold in those three neighborhoods, but there are currently 36 homes on the market.  On average, those homes have been on the market 96 days.  Using these figures it appears there is 16 months worth of housing inventory currently on the market.  Not great if you are a seller.  Awesome news if you are a buyer.  And even better if you are a buyer without a house to sell!

What has happened in the last eight to six weeks to slow down the sales?  A couple of things.  Interest rates have dropped again.  Many potential buyers (a couple of my clients included) have decided to refinance and see what the spring market brings.  County, city and state budget are also in the works.  Those government employees continue to be in a holding pattern until they are comfortable with how everything shakes out.

If you are a seller, price will continue to be a driving force in how long it takes to sell your home.  The condition of your home will also be a factor.  The better it looks (and inspects) the better your chances of a successful sale.

Here's what happened in September:

Sunset Village Home Sales-September

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
509 N. Owen	$229,900	$229,900	$227,00	99%	99%	15	15
Average Total	$229,900	$229,900	$227,00	99%	99%	15	15

Westmorland Home Sales-September

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
4305 Keating Terr	$235,500	$235,500	$229,000	97%	97%	35	35
4121 Paunack Ave.	$279,000	$279,900	$275,000	98%	98%	4	4
442 Holly Ave.	$309,900	$309,900	$309,900	100%	100%	2	2
Average Total	$275,100	$275,100	$271,300	98%	98%	14	13.6

Dudgeon-Monroe Home Sales-September

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
2106 Monroe St.	$274,900	$264,900	$252,100	92%	95%	153	49
2226 Fox Ave.	$350,000	$350,000	$310,000	89%	89%	36	36
Average Total	$312,450	$307,450	$281,050	90%	92%	95	42.5