What Does Unemployment Have To Do With Anything?

What does unemployment have to do with anything? The short answer is: a lot. When people aren’t working, they are not spending money. This results in a spiral effect where there is a further increase in unemployment which leads to a further decrease in consumer spending. If this goes on long enough, and it has already gone on for too long, it can lead to financial hardships for families resulting in credit and mortgage troubles.

The national unemployment rate was  roughly in the range of 4% to 6% from 2001 through 2006. (Unemployment data is available from the Bureau of Labor and Statistics.) This was the time of the housing boom (or housing bubble if you will) in the U.S. Then around the second half of 2008, the unemployment rate started to rise as the financial crisis started to take hold. Is it a coincidence that a decline in the housing market was happening around the same time? No, not at all.

By Oct. 2009, the national unemployment rate peaked at over 10%. Since then it has been slowly declining to around 9% and has most recently (Nov. 2011) dropped to 8.6%. During this time, housing prices were still declining and continue to decline. I think that it will take a steady and significant decrease in the unemployment rate, followed by a period of credit and savings rebuilding, before consumer confidence and spending will increase. That’s what will spark an improvement in the housing market (albeit a slow motion spark) where home values are increasing and people will be able to buy the new home they have been wanting for years.

So what’s happening locally?  Where the national unemployment rate for Nov. 2011 was 8.6%, The Illinois unemployment rate was 9.4%.  Digging down a little further, the unemployment rate for the Chicago-Joliet-Naperville , IL Metropolitan Division was 9.8%. (Not seasonally adjusted unemployment data is available from Illinois Department of Employment Security.)  So the numbers for Illinois and the local area are higher than the national average.

Looking at the some of the surrounding counties in the Fox Valley, here are the latest numbers for unemployment in Nov. 2011;

LaSalle County    10.8% (ranked 10 out of 102 in IL)
Cook County        10.3% (ranked 14 out of 102 in IL)
Kane County        9.6% (ranked 26 out of 102 in IL)
Will County          9.6% (ranked 26 out of 102 in IL)
DeKalb County    8.9% (ranked 41 out of 102 in IL)
McHenry County 8.9% (ranked 41 out of 102 in IL)
Kendall County   8.7% (ranked 46 out of 102 in IL)
DuPage County   7.7% (ranked 76 out of 102 in IL)

So who’s ranked #1 in Illinois?  Montgomery County with an unemployment rate of 12.4%. (Keep in mind that being ranked #1 on this list is not a good thing.) And who’s at the bottom of the list? Brown County with an unemployment rate of 4.4%.

Let me know what your thoughts are on how unemployment has affected or will affect the real estate market.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

Incorporated versus Unincorporated

I was thinking the other day about the difference between living in an incorporated area and an unincorporated area of town.  The first thing that came to mind was lower property taxes.  Generally, that’s the case for unincorporated areas.  But what are you giving up to have lower taxes?  What are you gaining by living in an unincorporated area?

So I asked around, I did some research on-line, and what I found out was, it depends.  It depends on each area, because they are all different.

In general, some things to consider include:

• If I dialed 911, who would come, if anyone?
  • Is my area covered by city police or the county sheriff?
  • What fire department would come to my home if there was a fire?
  • Is there ambulance service available for my home?
• Who plows the street in front of my house in the winter?
• What city / county ordinances apply to my location?
• What elected officials will I be able to vote for?
• Will I be able to get a library card?
• Will I be able to take advantage of the park district facilities?
• Who will provide utilities like gas and electric to my home?
• What services are available to pick up my garbage?
• Who controls building permits and inspections?

Some of the infrastructure differences between incorporated and unincorporated areas include:

• Street lights
• Sidewalks
• Fire hydrants
• Storm drains
• Public water supply
• Public sewer system

And I’m sure the list goes on.  Boy, that’s a lot of stuff to think about.  What would I be gaining by living in an unincorporated area?  Again, each area is different, but in general, it means lower property taxes, homes with more land (gotta love more space), less rules (that could be good or bad), and did I mention, lower taxes (oh yeah I did).

If you think of more differences, let me know.  If you’ve got more pros and cons in mind, point those out too.  When it comes right down to it, one is not necessarily better than the other.  It’s more a personal choice that each of us would have to make on what area best fits our life style.  The best thing I could suggest is to do your due diligence when you are looking to buy your home.  Talk to the neighbors, ask the previous owner, look at the details on the tax bill, do some on-line research, and get the answers to your questions from your city, township and county officials.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

Batavia Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the Batavia real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market.

Batavia – Attached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$215,000	26%
Qty Sold (All)	2	100%
Qty Sold (up to $200k)	2	100%
Qty Sold ($200k up to $400k)	0	0 Sold in 2010
Distressed Homes Sold	January 2011
% of Distressed Homes	0%
Median Sale Price	$0
	February 2011
Qty of Homes for Sale	39
Qty of Homes Under Contract	2
Months of Inventory*	20.5	(Buyer’s Market)
Batavia – Detached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$233,250	-21%
Qty Sold (All)	12	33%
Qty Sold (up to $250k)	8	167%
Qty Sold ($250k up to $500k)	4	-20%
Qty Sold ($500k up to $750k)	0	-100%
Distressed Homes Sold	January 2011
% of Distressed Homes	25%
Median Sale Price	$210,000
	February 2011
Qty of Homes for Sale	169
Qty of Homes Under Contract	40
Months of Inventory*	17.4	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

Aurora Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the Aurora real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market.

Aurora – Attached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$121,500	-9%
Qty Sold (All)	24	33%
Qty Sold (up to $200k)	24	50%
Qty Sold ($200k up to $400k)	0	-100%
Distressed Homes Sold	January 2011
% of Distressed Homes	71%
Median Sale Price	$114,250
	February 2011
Qty of Homes for Sale	435
Qty of Homes Under Contract	85
Months of Inventory*	21.7	(Buyer’s Market)
Aurora – Detached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$109,000	9%
Qty Sold (All)	71	8%
Qty Sold (up to $250k)	14	17%
Qty Sold ($250k up to $500k)	8	14%
Qty Sold ($500k up to $750k)	2	100%
Distressed Homes Sold	January 2011
% of Distressed Homes	62%
Median Sale Price	$69,450
	February 2011
Qty of Homes for Sale	959
Qty of Homes Under Contract	214
Months of Inventory*	16.5	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

West Chicago Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the West Chicago real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a buyer’s market for attached homes and a strong buyer’s market for detached homes.

West Chicago – Attached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$123,500	-18%
Qty Sold (All)	3	200%
Qty Sold (up to $200k)	2	100%
Qty Sold ($200k up to $400k)	1	0 sold Jan 2010
Distressed Homes Sold	January 2011
% of Distressed Homes	67%
Median Sale Price	$121,750
	February 2011
Qty of Homes for Sale	29
Qty of Homes Under Contract	4
Months of Inventory*	11.0	(Buyer’s Market)
West Chicago – Detached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$120,000	-28%
Qty Sold (All)	15	50%
Qty Sold (up to $250k)	10	43%
Qty Sold ($250k up to $500k)	5	67%
Distressed Homes Sold	January 2011
% of Distressed Homes	67%
Median Sale Price	$86,250
	February 2011
Qty of Homes for Sale	224
Qty of Homes Under Contract	59
Months of Inventory*	18.9	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

South Elgin Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the South Elgin real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market.

South Elgin – Attached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$0	-100%
Qty Sold (All)	0	-100%
Qty Sold (up to $200k)	0	-100%
Qty Sold ($200k up to $400k)	0	0 Sold in 2010
	February 2011
Qty of Homes for Sale	73
Qty of Homes Under Contract	14
South Elgin – Detached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$218,500	70%
Qty Sold (All)	3	0%
Qty Sold (up to $250k)	2	-33%
Qty Sold ($250k up to $500k)	1	0 sold Jan 2010
Distressed Homes Sold	January 2011
% of Distressed Homes	67%
Median Sale Price	$214,000
	February 2011
Qty of Homes for Sale	121
Qty of Homes Under Contract	28
Months of Inventory*	49.7	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

Will County Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the Will County real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market.

Will County – Attached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$115,000	-10%
Qty Sold (All)	62	-9%
Qty Sold (up to $200k)	57	-3%
Qty Sold ($200k up to $400k)	5	-44%
Distressed Homes Sold	January 2011
% of Distressed Homes	48%
Median Sale Price	$95,000
	February 2011
Qty of Homes for Sale	1,365
Qty of Homes Under Contract	173
Months of Inventory*	24.8	(Buyer’s Market)
Will County – Detached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$175,500	-2%
Qty Sold (All)	222	-5%
Qty Sold (up to $250k)	155	-6%
Qty Sold ($250k up to $500k)	54	-14%
Qty Sold ($500k up to $750k)	12	100%
Qty Sold ($750k and up)	1	0 sold Jan 2010
Distressed Homes Sold	January 2011
% of Distressed Homes	51%
Median Sale Price	$139,000
	February 2011
Qty of Homes for Sale	3,984
Qty of Homes Under Contract	875
Months of Inventory*	21.9	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

McHenry County Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the McHenry County real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market.

McHenry County – Attached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$79,950	-42%
Qty Sold (All)	16	-20%
Qty Sold (up to $200k)	14	-7%
Qty Sold ($200k up to $400k)	1	-80%
Distressed Homes Sold	January 2011
% of Distressed Homes	44%
Median Sale Price	$65,000
	February 2011
Qty of Homes for Sale	659
Qty of Homes Under Contract	77
Months of Inventory*	46.0	(Buyer’s Market)
McHenry County – Detached Homes
All Homes Sold	January 2011	% Change From Last January
Median Sale Price	$168,750	-6%
Qty Sold (All)	124	-8%
Qty Sold (up to $250k)	94	-3%
Qty Sold ($250k up to $500k)	25	-26%
Qty Sold ($500k up to $750k)	3	50%
Qty Sold ($750k and up)	2	0%
Distressed Homes Sold	January 2011
% of Distressed Homes	56%
Median Sale Price	$120,000
	February 2011
Qty of Homes for Sale	2,419
Qty of Homes Under Contract	470
Months of Inventory*	23.3	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

DuPage County Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the DuPage County real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market

DuPage County – Attached Homes
All Homes	January 2011	% Change From Last January
Median Sale Price	$125,000	-4%
Qty Sold (All)	143	13%
Qty Sold (up to $200k)	121	32%
Qty Sold ($200k up to $400k)	17	-43%
Qty Sold ($400k up to $600k)	5	0%
Distressed Homes Sold	January 2011
% of Distressed Homes	50%
Median Sale Price	$86,000
	February 2011
Qty of Homes for Sale	3,221
Qty of Homes Under Contract	549
Months of Inventory*	26.4	(Buyer’s Market)
DuPage County – Detached Homes
All Homes	January 2011	% Change From Last January
Median Sale Price	$235,000	-11%
Qty Sold (All)	314	29%
Qty Sold (up to $250k)	172	56%
Qty Sold ($250k up to $500k)	83	-7%
Qty Sold ($500k up to $750k)	33	38%
Qty Sold ($750k and up)	26	24%
Distressed Homes Sold	January 2011
% of Distressed Homes	42%
Median Sale Price	$168,000
	February 2011
Qty of Homes for Sale	4,468
Qty of Homes Under Contract	962
Months of Inventory*	17.3	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764

Kane County Real Estate Market Pulse – January 2011

Below are some key statistics to give you an idea of what is happening in the Kane County real estate market.  Note that distressed home sales continue to make up a significant portion of the real estate market and that the inventory levels indicate a strong buyer’s market

Kane County – Attached Homes
All Homes	January 2011	% Change From Last January
Median Sale Price	$120,000	-27%
Qty Sold (All)	46	10%
Qty Sold (up to $200k)	41	32%
Qty Sold ($200k up to $400k)	5	-55%
Distressed Homes Sold	January 2011
% of Distressed Homes	50%
Median Sale Price	$90,000
	February 2011
Qty of Homes for Sale	1,055
Qty of Homes Under Contract	177
Months of Inventory*	26.8	(Buyer’s Market)
Kane County – Detached Homes
All Homes	January 2011	% Change From Last January
Median Sale Price	$170,653	17%
Qty Sold (All)	210	6%
Qty Sold (up to $250k)	152	6%
Qty Sold ($250k up to $500k)	46	-6%
Qty Sold ($500k up to $750k)	9	125%
Qty Sold ($750k and up)	3	200%
Distressed Homes Sold	January 2011
% of Distressed Homes	56%
Median Sale Price	$103,000
	February 2011
Qty of Homes for Sale	3,315
Qty of Homes Under Contract	813
Months of Inventory*	19.7	(Buyer’s Market)

*Months of Inventory is calculated by dividing the number of homes currently for sale and under contract by the number of homes that have sold last month. A result of 1 to 5 months is considered a Seller’s Market. A result of 6 to 8 months is considered a Neutral Market.  A result of 9 or more months is considered a Buyer’s Market. Note that this number assumes that no new homes come onto the market.

(Data Source: MLS)

Whether you are looking to buy, sell or invest in real estate, check out www.FoxValleyGreenHomes.com for the latest market information and resources to help you with all of your real estate needs.

Vince Coniglione
Real Estate Professional
Keller Williams Fox Valley Realty
630-391-8764