By SANFORD J. SCHMIDT
EDWARDSVILLE - Experienced real estate professionals are used to bumps, and this year is no exception in that department with home sales in August reaching their highest point in Madison County since November.
"The hot selling season is spring and summer," said Al Suguitan, the chief operating officer of the Greater Gateway Association of Realtors.
He said August is often a good month for sales figures because families are anxious to get settled into their new homes in time for the start of school. August is the last month for which figures are available.
August home sales were 263, up from 196 in July. Apparently, the trend continues, at least for now in Madison County.
"I've seen a definite increase in activity in the last few weeks. Buyers are out looking again, and sellers are trying to get their homes listed before winter. Many of the agents I've spoken to lately are busy, and that's encouraging," said Jenni Beck of Godfrey, chairman of the board of the Greater Gateway Association of Realtors.
Suguitan said the real estate sector of the economy needs a more sustained period of job growth and government policy to see a true rebound.
He said there was a bump in home sales last year after Congress passed and President Obama signed an $8,000 tax credit for first-time homebuyers. The bump caused some people to enter the market sooner than they otherwise would, so there were fewer buyers in succeeding months, he said.
Now, sales are getting back up to where they might have been without the credit, he said.
"Probably we hit bottom in 2010, and we are now bumping along the bottom," Suguitan said.
The next year will also offer more bumps in the road, he said. Uncertainty will prevail, as the president and Congress discuss eliminating the tax deduction for mortgage interest.
"For those of us in the real estate business, the mortgage interest deduction is the Holy Grail," he said.
The talk back and forth might reverberate through the economy, and the housing market is a big chunk of the economy, he said.
"It is an election year, and the president is going to be doing things to try to get himself re-elected," Suguitan said.
The regulations on banks are creating added caution in the lending industry, he said. People have to have much higher credit ratings to qualify for a loan, compared to the times before the housing bust; therefore, home sales are affected accordingly.
"My feeling is to back off and let the market correct itself," Suguitan said.
He said banks are sometimes criticized for holding on to too much cash, but that argument does not wash with him nor with people in his business. Banks don't make money unless they lend money, so they will do that if the rules are not too restrictive.
In the meantime, people need help these days buying a home, Beck said.
"I'm just finishing up my term as chairman of the board and am so excited about getting back into the business full time. Being busy right now makes it even more exciting. Both buyers and sellers seem to be taking advice from the Realtors more seriously, I think they've realized it's a different market and they need our help more than ever.
"Pricing homes correctly from the get-go is imperative, otherwise it will be just another 'old listing' with all of the foreclosures," Beck said.
The bumps in the local market reflect the national situation.
Home prices rose for a fourth straight month in most major U.S. cities in July, buoyed by seasonal buying. But the housing market remains depressed, and prices are expected to decline in the coming months, according to the Associated Press.
Higher prices result from higher demand, which also results in higher sales numbers.
The Standard & Poor's/Case-Shiller index released Tuesday showed home prices increased from June to July in 17 of the 20 cities tracked.
The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The July data are the latest available.
Analysts cautioned that the price increases are temporary and not evidence of a housing recovery. Home sales have declined in each of the months in which prices rose.
Prices are expected to drop again this fall and winter, based on the poor sales and on expectations that banks will resume processing a raft of foreclosures that have been in limbo.
"This is still a seasonal period of stronger demand for houses, so monthly price increases are expected," said David M. Blitzer, chairman of Standard & Poor's index committee.
Housing is a key reason the economy has continued to struggle more than two years after the recession officially ended.
Suguitan noted that not only do new home sales spur growth in major industries, such as lumber and metals, but new homes in a local area can spur sales of items like washing machines.
Housing sales can also spur sales of items sold at big home improvement stores as people make purchases to make their new homes suit their needs, Suguitan said.
High unemployment, larger required down payments and tighter credit are preventing many buyers from entering the market. Many who could afford to buy are waiting because they are worried the U.S. could fall back into another recession and prices could fall further.
Previously occupied homes are selling only slightly faster than last year, when sales were the lowest since 1997.
New-home sales dropped in August for a fourth straight month. This year is shaping up to be the worst for sales of new homes since record-keeping began in 1963.
And home prices are certain to fall further once banks resume millions of foreclosures that have been delayed because of a 10-month government investigation into mortgage lending practices.
"This effect (of spring buying) will fade soon because sales have dropped back in recent months," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. "We expect to see price declines again by the autumn, but we do not anticipate a renewed collapse" in the housing market.
Suguitan, who is 64, said that despite the rough weather ahead, he is certain the American economy will bounce back. That is because this is America, and in his 40 years in business, the economy has always bounced back.
Beck agreed.
"I certainly don't expect 2012 to be a record-breaking year, but I think sales and home prices will stay steady. Those of us (realty agents) who are in this for the long haul will continue to help buyers and sellers weather the storms just like we have been the last few years," she said.
The Associated Press contributed information for this article.
sanfordschmidt@yahoo.com
He said August is often a good month for sales figures because families are anxious to get settled into their new homes in time for the start of school. August is the last month for which figures are available.
August home sales were 263, up from 196 in July. Apparently, the trend continues, at least for now in Madison County.
"I've seen a definite increase in activity in the last few weeks. Buyers are out looking again, and sellers are trying to get their homes listed before winter. Many of the agents I've spoken to lately are busy, and that's encouraging," said Jenni Beck of Godfrey, chairman of the board of the Greater Gateway Association of Realtors.
Suguitan said the real estate sector of the economy needs a more sustained period of job growth and government policy to see a true rebound.
He said there was a bump in home sales last year after Congress passed and President Obama signed an $8,000 tax credit for first-time homebuyers. The bump caused some people to enter the market sooner than they otherwise would, so there were fewer buyers in succeeding months, he said.
Now, sales are getting back up to where they might have been without the credit, he said.
"Probably we hit bottom in 2010, and we are now bumping along the bottom," Suguitan said.
The next year will also offer more bumps in the road, he said. Uncertainty will prevail, as the president and Congress discuss eliminating the tax deduction for mortgage interest.
"For those of us in the real estate business, the mortgage interest deduction is the Holy Grail," he said.
The talk back and forth might reverberate through the economy, and the housing market is a big chunk of the economy, he said.
"It is an election year, and the president is going to be doing things to try to get himself re-elected," Suguitan said.
The regulations on banks are creating added caution in the lending industry, he said. People have to have much higher credit ratings to qualify for a loan, compared to the times before the housing bust; therefore, home sales are affected accordingly.
"My feeling is to back off and let the market correct itself," Suguitan said.
He said banks are sometimes criticized for holding on to too much cash, but that argument does not wash with him nor with people in his business. Banks don't make money unless they lend money, so they will do that if the rules are not too restrictive.
In the meantime, people need help these days buying a home, Beck said.
"I'm just finishing up my term as chairman of the board and am so excited about getting back into the business full time. Being busy right now makes it even more exciting. Both buyers and sellers seem to be taking advice from the Realtors more seriously, I think they've realized it's a different market and they need our help more than ever.
"Pricing homes correctly from the get-go is imperative, otherwise it will be just another 'old listing' with all of the foreclosures," Beck said.
The bumps in the local market reflect the national situation.
Home prices rose for a fourth straight month in most major U.S. cities in July, buoyed by seasonal buying. But the housing market remains depressed, and prices are expected to decline in the coming months, according to the Associated Press.
Higher prices result from higher demand, which also results in higher sales numbers.
The Standard & Poor's/Case-Shiller index released Tuesday showed home prices increased from June to July in 17 of the 20 cities tracked.
The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The July data are the latest available.
Analysts cautioned that the price increases are temporary and not evidence of a housing recovery. Home sales have declined in each of the months in which prices rose.
Prices are expected to drop again this fall and winter, based on the poor sales and on expectations that banks will resume processing a raft of foreclosures that have been in limbo.
"This is still a seasonal period of stronger demand for houses, so monthly price increases are expected," said David M. Blitzer, chairman of Standard & Poor's index committee.
Housing is a key reason the economy has continued to struggle more than two years after the recession officially ended.
Suguitan noted that not only do new home sales spur growth in major industries, such as lumber and metals, but new homes in a local area can spur sales of items like washing machines.
Housing sales can also spur sales of items sold at big home improvement stores as people make purchases to make their new homes suit their needs, Suguitan said.
High unemployment, larger required down payments and tighter credit are preventing many buyers from entering the market. Many who could afford to buy are waiting because they are worried the U.S. could fall back into another recession and prices could fall further.
Previously occupied homes are selling only slightly faster than last year, when sales were the lowest since 1997.
New-home sales dropped in August for a fourth straight month. This year is shaping up to be the worst for sales of new homes since record-keeping began in 1963.
And home prices are certain to fall further once banks resume millions of foreclosures that have been delayed because of a 10-month government investigation into mortgage lending practices.
"This effect (of spring buying) will fade soon because sales have dropped back in recent months," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. "We expect to see price declines again by the autumn, but we do not anticipate a renewed collapse" in the housing market.
Suguitan, who is 64, said that despite the rough weather ahead, he is certain the American economy will bounce back. That is because this is America, and in his 40 years in business, the economy has always bounced back.
Beck agreed.
"I certainly don't expect 2012 to be a record-breaking year, but I think sales and home prices will stay steady. Those of us (realty agents) who are in this for the long haul will continue to help buyers and sellers weather the storms just like we have been the last few years," she said.
The Associated Press contributed information for this article.
sanfordschmidt@yahoo.com
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