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!