Democracy

Our country made a grassroots decision yesterday to make a fundamental change in the leadership of many its legislative bodies.  Although the election season is lengthy, the decision was made in a short period of time and in an orderly manner. There was no violent uprising by the party taking leadership, no one was assassinated and the transition will take place peacefully during the next two months. 

Whether you are Republican, Democrat, Independent or Libertarian, one has to marvel at how well democracy works.

September Existing Home Sales Numbers.

The Indiana Association of Realtors has released its September, 2010 existing home sales statistics for the state and each county.  The numbers continue to reflect the softness the markets have experienced since the close of the Federal home buyers tax credit on June 30, 2010. The program was incredibly successful in nurturing demand, especially at the first time home buyer level, where the size of the credit was most attractive, and in all likelihood, accelerating some Q3 and 4 2010 demand into the first half of 2010. 

Closed unit sales for the state in September dropped by 17.6%, compared to September, 2009.  However, year to date sales were even with last year, demonstrating the success of the tax credit.  Likewise, pending sales in September (a barometer for October closings) were down by 21.%, but only off by 1.4% on a year to date basis. 

A more encouraging measure, in particular when assessing the future health of the market, is the number of months supply of home sales in inventory.  On a statewide basis, the number of months dropped from 12.0 and 12.1 months in September 2008 and 2009, respectively, to 10.3 months in September, 2010 (a significant14% decline).

The Tippecanoe numbers parallel the State numbers and other peer communities.  Unit sales for the month of September were 19.0% below last year, compared to a 20.5% decline in Marian County and a 22.5% decline in Monroe County.  Year to date units sales in Tippecanoe County are off by 2.0%.  Values are holding steady. The average year to date sale price in Tippecanoe County is 0.4% above last year.

It is still difficult to accurately predict when the local residential market will permanently emerge from this nationwide recession.  However, a few factors are becoming increasingly clear. 

1.  Our industry benefited from the Federal tax credit and accelerated some late 2010 sales into the first half of the year.   We are currently paying the price for the benefit we enjoyed earlier.

2.  There is good reason to believe that in spite of the completion of the tax credit and the temporary moratorium on foreclosures issued by some large banks, we are beyond the bottom of the recession and are on the gradual road to recovery.  Overall conditions are not getting worse.

3.  Employment numbers are slowly getting better rather than worse.

4.  Interest rates are at a historic low.

5.  The level of existing housing inventory is moving toward a more balanced level.

Will these factors lead to a quick recovery?  Probably not, but they are all important building blocks upon which a permanent recovery can be build.

For a complete set of numbers, please visit the Indiana Association of Realtors link.

2010 Professional Standards Award: Olga Jeffares

Each year, the Lafayette Regional Association of Realtors (LRAOR) presents its Professional Standards Award to one if its members who "upholds high principles, is faithful to the laws and regulations, the Code of Ethics, and the furtherance of principles of good real estate practice among brokers and the general public."  It is one of most distinguished awards the Association gives each year.  The 2010 award winner is Olga Jeffares, from our office.

Olga joined our company in 1984 and has consistently been a respected leader within the local real estate industry.  She has been active with the LRAOR Forms Committee and the International Center in West Lafayette.  Better Homes and Gardens (our former franchisor) and Coldwell Banker have both recognized Olga for her annual sales volume and she won the Coldwell Banker Shook Marilyn F. Wilson Award for customer service in 2009.  She is well liked and respected by all of us.

We all tip our cap to Olga for the well deserved recognition the LRAOR has bestowed upon her

Journal and Courier's "Readers' Choice Awards"

Thanks to all our friends for supporting us and your kind words during the J&C's "Reader Choice Awards" We sure had a good time visiting with each of you, encouraging your votes. We'll await the results from the newspaper. I'll let you know you it shakes out.


Charlie Shook

Journal and Courier Readers Choice Awards

Once again Coldwell Banker Shook is a finalist in the "Best Real Estate Company" category in the Journal and Courier's annual Readers Choice Award survey.  We were privileged to win last year.

I am the first to admit that the survey is not statistically meaningful, but the contest is a lot of fun, nonetheless. We're up for the adventure.

So, we are requesting that you go to the Journal and Courier online newspaper, jconline.com, and cast your ballot for Coldwell Banker Shook as your preferred real estate company. The polls are open between Tuesday, October 5th and Saturday, October 9th.  There is only one vote per email address and your votes will be confidential.

Thanks for your support....Charlie

USA Today Article

Congratulations to Greater Lafayette for being featured as the spotlight community in "USA Today's" weekly column, Close to Home.  For those of you not familiar with the column, it identifies a community in the U.S. each week and discusses the condition and unique features of its residential real estate market.  In the September 7th issue of the paper, Lafayette Indiana was featured.

The article, written by Christine Dugas, was well prepared and accurate.  Unfortunately, it was written just after the release of the July closed units numbers, so the tone was tepid.  Maggie Stark, a seasoned agent in our office and President of the Lafayette Regional Association of Realtors did a fine job explaining how the expiration of the home buyers tax credit created a natural decline in volume.  She also touted the overall strength of the community and local economy.

Cheryl Butcher also had an opportunity in the article to feature her 6,300 square foot log home on 14 acres on State Road 38.  It's hard to find better national exposure than the "USA Today".

July Residential Sales

Tippecanoe County Courthouse

As I have written earlier, the residential real state market across our country was favorably impacted by the first time home buyers tax credit created by Congress in early 2009 and expanded to include "move up" buyers in November, 2009.  In order for a buyer to qualify for the tax credit, an accepted offer on a home had to be in place by April 30, 2010 and the transaction had to close by June 30th.  As it turned out, Congress extended the close date deadline to September 30, 2010 after the close of business on June 30th.  [Note:  the inefficiency of Congress at times causes one to scratch their head and wonder why]

We had a strong sense that a meaningful portion of our demand this winter and spring was driven by the tax credit, but it was hard to quantify. As the April 30th deadline to have an offer accepted approached, the local market reached almost a frenzied pace. Many Realtors worked late nights in the weeks preceding April 30th.  It was wonderful!  As we feared, on the days and weeks that followed April 30th, the number of showings and accepted offers dropped noticeable compared to last year, especially for it being so early in the year.

Now that we are more than one month beyond the initial closing date deadline for the tax credit, we can measure the number of closed units with and without the benefit of the tax credit. The numbers are pretty incredible. Year to date residential unit sales through May 31, 2010 in the Greater Lafayette area were 19% ahead of the same period last year.  However, that is when the fun began to end.  Residential unit sales in June were 12% below last year and July was 32% below July, 2009.  On a year to year basis, year to date sales through July are 3% below last year.

We are currently in a slow season, measured by showing activity.  However, what we are experiencing now is not uncommon for the back to school season. We usually see a bump in showing activity and Open House attendance after Labor Day.  Let's wait to see what happens in September.  I'll report back