This is a preliminary report for home sales in one of the nations most stable real estate markets for the month of June, second quarter, and first half of 2008. The numbers will change slightly as member brokers of the Capital Area Association of Realtors have through July 3 to report sales for June. Don’t expect any significant changes.
The one trend that stands out is the median sale price. On the strength of a 1.1% increase in June to $114,750, the second quarter increased $500 or less than one half percent to $107,500 over 2007. The first half of 2008 median sale price is up $3000 to $105,000 or by 2.9% over 2007. The reason this stands out is this represents a marked slowdown in the rising median sale price. This probably is the result of fewer sales, and record inventory.
Closed home sales for June stand at 360 at time of report or down 21.7%. Anticipate a few more sales to be reported, with a decline of 90 to 95 home sales or a 19 to 20% drop from June 2007.
Closed home sales for the second quarter are down by 164 or by 13.1%. The slowest second quarter this decade. With sales pending off in June don’t expect a rebound in closed sales in July.
Closed home sales for the first half of 2008 are down by 322 to 1755 or by 15.5%. Final numbers will probably finish at 1760 to 1765 closed home sales. Following the expiration of 101 listings the past 48 hours, the number of homes listed for sale stands just under 1900. Clearly a greater than 6 month inventory of homes for sale.
Sales pending fell by 80 or by 16.8% in June; by 173 or 11.7% in the second quarter, and by 364 or 13.6% in the first half of the year. With the tougher lending standards, tightening appraisal values, and a home seller’s greatest nemesis the home inspection, approximately 20% of sales pending fail to close.
The slow down in the Midwest’s best market in 2007 is indicative of the recent pull back in consumer spending resulting from high fuel prices which is causing the price of just about all consumer products to increase. Just ask the auto industry, or Starbucks.
With a complete lack of leadership from the Democrats in the State, and in the U.S. Congress don’t expect any price relief at the pump anytime soon. Yesterday the Dem’s Harry Reid continues to do nothing to help increase production of oil by standing with the environmentalists by saying oil and coal make us sick. Oil and coal make the economy healthy Senator Reid. Lower fuel prices would bring down food and other consumer prices, and create jobs.
This is 2008 where production and use of these energy sources can be done in an environmentally safe way. Ask any miner that wants a job, a working single mom, or construction worker what their opinion is. Senator Reid would rather starve the miner, his family, and see you pay more at the pump. For Democrats to say they stand for the working man is mere rhetoric, their actions harm the working man. All for personal political gain. Time for Reid to go, or start acting in the best interests of the people.
The people of this country better wake up to the fact that the Democrats will destroy the economy in favor of promoting climate change (a/k/a global warming) for political gain, because they are owned by environmental extremist’s lobbies and philosophy. This is nothing more than promoting a Socialist movement to gain control over your lives. It has nothing to do with the environment.
In my opinion the people of America had better kick the Democrats (and any Republican) under the bus that supports extreme actions due to the fallacy of climate change, over the price of gas/food/energy you pay, crippling the economy. Time for a return to common sense, and practical programs that will lower the price of gas/food/energy.
Enough of the liberal feel good environmental political correctness, and put people above political ambition.
Wow, what a week in the news; Eliot Spitzer, Geraldine Ferraro, Tony Rezko, Jeremiah Wright, and gas prices jumping to record highs.
What impact do these people and events have upon the housing market? Plenty. Experts were surprised this week to learn that the predicted increase in retail sales in February never materialized as retail sales fell .6% percent. What drives the economy? Consumer spending. It appears the higher cost of energy and food is causing the American consumer to pull back on non-essential spending. Something we predicted on January 5th could happen. Well it has happened.
Consumer confidence has been shaken with this sharp rise in gas prices. In my opinion the sleazy political stories about Spitzer and the Democrat Party primary campaign are not exactly confidence boosters. Low consumer confidence combined with eroding disposable incomes will impact home sales. If consumers are pulling back on small purchases, what do you think they are doing about large purchases?
This year is going to impact the economy and your pocketbooks in a hugely negative way unless Americans wake up and take positive actions on two fronts; energy and taxes. In my opinion governments, local, state or federal don’t have a money problem they have a spending problem. We have high costs for energy due to the failure of our government to implement meaningful energy policies, bowing to the desires of the environmental and tourist lobbies.
Although revenues to the state have increased at twice the rate of inflation the past five years, senate Democrats are proposing a 2% increase in the income tax, and an increase in corporate taxes that will be passed along to you through higher prices. On the federal level both Democrat candidates will allow the Bush tax cuts to expire raising taxes on families of four, earning $50,000 a year, by over $2000. Simultaneously both candidates are proposing about one trillion dollars in new programs. When will people say enough is enough about bloated government, higher taxes, and overspending?
When will the American people say enough is enough as they dig into their pockets paying $3.50 a gallon for gas? When people learn the truth about why gas prices are so high. Share the following five reasons why gas, and energy prices are so high with everyone you know. Please ask them to call their congressmen, senators, and state officials.
Reason number one why gas prices are high; taxes. The people of Illinois should be in complete revolt against their dishonest, dysfunctional government that takes about 40 cents a gallon every time you fill up in motor fuel and sales taxes. That money is intended to maintain, and build transportation infrastructure. Where does the money go? Into nanny state, feel good programs like kids care where 54,000 children have been enrolled, costing taxpayers hundreds of millions of dollars, and half the kids enrolled are from illegal immigrant families. When will the state realize that by putting the gas tax into infrastructure improvements, where it was supposed to go in the first place, that those improvements would attract new businesses to the state, creating more jobs, so people could work and accept personal responsibility to pay for their own kids care? The Feds add their motor fueltax, then Illinois charges sales tax on top of the two motor fuel taxes, triple dipping into your pocket. Reason number one your gas prices are high; taxes, federal, state, local, and sales taxes.
Reason number two your gas prices are high is due to environmental and tourism lobbyists buying votes of those who write energy laws. We have billions of barrels of oil in Alaska, the continental states, and offshore. Will you feel better the next time you fill your tank because some toad did not lose its habitat, while you have to scrimp at the store to feed your kids? The next time you vacation in Florida or California you can be ecstatic not to see oil derricks miles offshore affecting your view of the horizon. Today you’ll only have to pay $50 per person each plane trip in fuel surcharges. We need to capture our own resources lying beneath our feet instead of importing oil from dictators and terrorists. The price of oil is the single biggest factor in the price of gasoline.
Reason number three why gas prices are high is the environmentalists have made building refineries all but impossible, and even fight the expansion of existing refineries. BP is attempting to increase the size of the Wood River refinery by 50%. Environmentalists always show up in larger numbers at hearings and meetings, than do supporters. This is an eight billion dollar proposal that will double production capacity, and create hundreds of good paying jobs. Become involved and attend the hearings and meetings in support of refinery expansion. The application at Wood River is now over a year old. Due to the lack of refining capacity, we now import gasoline, sheer economic madness!
Reason number four why you are paying high energy bills is because environmentalists have blocked the building of nuclear power plants because they say the plants are not safe. The U.S. Navy has powered nuclear submarines since the 1950’s without an accident, and even the French produce 80% of their electrical power from nuclear plants. Time to start getting serious about nuclear energy, let your elected officials know.
Reason number five why energy costs are high is environmentalists blocking the use of clean coal technologies. The U.S. is the Saudi Arabia of coal deposits. Hundreds of local miners are unemployed. Clean coal technology could add tremendous numbers of jobs for the miners, to power plants employees, and provide a substantial boost to our electrical production capabilities. Environmentalists have blocked these efforts. Time to get serious about clean coal technologies, call your representatives and tell them you believe a miner and his family are more important than toads.
Ladies and gentlemen the well intended environmentalists are the real reason why your gas prices are so high, not the greedy oil companies our main stream media and liberal politicians want to make you believe. Keep electing liberals and you have no grounds to complain about the cost of gas, because you voted for toads and owls over workers and their families, and it is costing you at the pump. The technology exists to take advantage of our oil, natural gas, and coal reserves in an environmentally safe way.
What does this have to do with real estate? Everything. This election year will determine if we are to become serious about lower taxes, responsible spending, and realistic energy policy. Allow the politicians to raise your taxes, and to remain dependant upon foreign oil, and the value of your home will plummet, because the majority of folks won’t be able to afford to buy a home. It’s simple; demand will fall when families already impacted by more stringent mortgage lending policies pay more at the pump and the store. The fewer the buyers, the fewer homes that sell, and at lower prices. If there was ever a perfect example of the laws of supply and demand it is the skyrocketing price of food as ethanol producers consume corn meant for the food supply.
Here’s the truth if you elect politicians that want to raise taxes who are in bed with the environmentalists. The average family of four will pay $2000 more in federal income taxes, $1000 more in state income taxes, will pay more for goods and services when Illinois corporations pass along corporate tax increases, will pay $4 to $5 a gallon for gas, will pay hundreds more at the grocery store, and will pay hundreds more to heat and cool their homes.
Ladies and gentlemen elect either Democrat candidate president, and let the state legislators raise the income and corporate taxes, and the average Illinois family won’t be buying any houses. They’ll be lucky to keep the home they have as a result of the unintended consequences of feel good liberal policies and politicians.
The mere mention of 9/11 brings back vivid memories for most Americans. Many can tell you exactly where they were and what they were doing when terrorists slammed airplanes into three American landmarks, killing thousands of innocent and unsuspecting people. With that act of terrorism, America’s innocence was lost forever and U.S. homeland security became an issue that will remain relevant for generations to come.
Barack Obama and John McCain will both agree that the safety of Americans is an issue that has to be solved, but how would each candidate address U.S. homeland security and make this country the safe harbor it was before September 11, 2001.
John McCain co-wrote legislation that created the 9/11 Commission and helped implement many of is recommendations. However, the 9/11 Commission gave the country five F’s and 12 D’s for its lack of effort in implementing the commissions recommendations, according to Barack Obama’s official website.
Obama is a member of the Senate Homeland Security and Government Affairs committee and co-authored legislation that would increase security and safety for chemical plants and the nation’s water supply. According to his website, “This bill requires chemical facilities to enhance security-including improving barriers, containment, mitigation, and safety training, and, where possible, using safer technology, such as less toxic chemicals.”
The Illinois senator acknowledges that improvements have been made at chemical plants, but he wants to establish permanent security regulations that all plants would have to adhere to in order to strengthen U.S. homeland security. Senator McCain would implement Security Vulnerability Assessments and Site Security Plans that would address security concerns at the plants.
According to McCain’s website, “(He) will work to ensure that all States and municipalities that are responsible for water supply or storage function adequately secure those systems in a manner that eliminates any risk of devastating contamination.”
Obama introduced a bill that will give $37.5 million over a five year period “for drinking water systems to upgrade their monitoring and security efforts,” because he believes that if water is contaminated it would disrupt society and produce a health catastrophe and compromise emergency services such as fire protection.
Nevertheless, McCain believes the key to improve U.S. homeland security is to prevent terrorism before a catastrophe occurs. He plans to accomplish this by working with United States allies and breaking up terrorist organizations and interrupting their financing to ensure that they do not obtain weapons of mass destruction. The Arizona senator wants to modernize the Foreign Intelligence Surveillance Act to improve intelligence and “to provide in statute clear guidance for future actions that may need to be taken.”
The Republican nominee also sees securing American borders as a key to improving U.S. homeland security. He plans to accomplish this by establishing operational control over the entire U.S. border, providing funding to construct 700 miles of fencing and hiring and training more border patrol agents to prevent terrorists from entering into the country illegally.
The senior senator also sees disaster recovery as a key to U.S. homeland security. He wants to establish a uniform standard of dealing with natural disasters that would better assist state and local governments with relief efforts. Obama also sees disaster recovery as highly important, introducing and passing legislation that requires a mandatory plan for evacuating special needs Americans. He also introduced and passed legislation that creates a national database for family members to locate each other after disasters like Hurricane Katrina.