It Ain't All Big Hair and Cadillacs

Midwest home sales up in August despite national slide

By Lorene Yue
Sept. 27, 2007

(Crain’s) — More new Midwest homes sold in August compared to July, a striking contrast to the national trend where sales fell last month to the lowest level in seven years.

Roughly 135,000 new homes sold in the 12-state Midwest region, a 20.5% increase from July, according to figures released Thursday by the U.S. Department of Commerce. On a year-to-year comparison, Midwest sales are lagging last year by 11.2%.

Across the nation, sales fell 8.3% in August from July or a seasonally adjusted rate of 795,000 homes. That was the lowest national level since June 2000, when sales clocked in at a pace of 793,000.

Analysts chalked up the Midwest's fortune as a combination of aggressive discounting by homebuilders, a credit crunch that has had a greater negative impact on either coast and data anomaly.

"In a monthly number, I wouldn't put too much weight in it," said Diane Swonk, chief economist for Mesirow Financial. "It can be a quirk in the data."

Kevin Thorpe, manager of housing statistics for the National Association of Realtors, said the Midwest gain could be a bounce back from low July numbers. The Midwest posted a decline in July home sales from June while the rest of the nation saw increases.

The home sales report came on the same day that the government reported a relatively brisk business growth rate in revised figures for the second quarter. But the 3.8 percent pace was less than previously estimated and it occurred before the credit crisis and its repercussions across the broad spectrum of the economy had taken hold.

The national median sales price in August fell by 7.5 percent from a year earlier to $225,700.

That was the biggest drop in percentage terms in nearly 37 years. The median price is the middle point at which half sell for more and half for less. The average sales price dropped by 8 percent in August from a year earlier to $292,000. That was the biggest decline in 17 years.

Sales fell in the South and the West in August compared with July. Sales in the Northeast rose 43.2% in August from July.

The new-homes sales report, combined with other recent economic reports showing a sharp drop in demand for big-ticket manufactured goods in August, suggested the U.S. economy lost momentum as it headed into the fall.

On Wall Street, investors looked to the weak home sales report as justification for another rate cut by the Federal Reserve. The Dow Jones industrial average was up slightly in afternoon trading.

(Associated Press contributed to this story.)

We need your help

Please read below and make the calls! Homeowners are caught in the middle...we need our State Rep's to know that we want this bill passed with the changes that the Governor made last week! It raises the exemption up to $40,000 and makes it PERMANENT

Please make the calls and pass it along. The legislature will be back in session next week. We only have 2 weeks to get this done...Please make these calls...we could end up with nothing which would mean HUGE increases for everyone

Thank you.

Barb Head


T R A C NEWS
ABA = Fair and Predictable
September 26, 2007

In This Issue
Make these CALLS
_____________________
Fair and Predictable Property Assessments

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TRAC CALL TO ACTION!
The Governor sent an Amendatory Veto to the House of Representatives calling for a permanent 7% property assessment cap with a maximum $40,000 alternative general homeowners exemption.

Read the press release
Read the story

But the changes must be approved by both the House and the Senate and there are TWO things you must do today:
1) Contact your State Representative
http://www.elections.il.gov/DistrictLocator/ (follow this link to find your State Rep)

Ask for QUICK ACTION on HB 664 - the 7% CAP, say that you want the legislature to PASS the Amendatory Veto
and provide a permanent $40,000 Homeowners Property Tax Exemption
2) CONTACT THE SPONSOR OF HOUSE BILL 664 - the 7% cap

State Representative Barbara Flynn Currie
DISTRICT OFFICE:
1303 East 53rd Street
Chicago IL 60615
773-667-0550
773-667-3010 (fax)
SPRINGFIELD OFFICE
217-782-8121
217-524-1794 (fax)

PASS the Governor's Amendatory Veto

TRAC calls for FAIR and PREDICTABLE PROPERTY ASSESSMENTS in Cook County
TRAC has a better plan for real property tax reform:

ACQUISITION BASED ASSESSING
= FAIR and PREDICTABLE property assessments

Learn about TRAC's campaign to implement ABA at the Cook County level.

For information contact: trac.president@gmail.com


ABA = FAIR and PREDICTABLE

TRAC | 867 W. Buckingham Place | Chicago | IL | 60657

In Need of Commercial Land

My client is actively seeking commercial plots of land that are NOT currently listed or not officially on the market with the following requirements:

a minimum of 15,000 square feet or greater
zoned ideally C1 or greater (automotive use) - will consider mixed use
high traffic area - ideally at major intersection or along high traffic thoroughfare
vacant or existing structure(s)
within 60 mile radius of Chicago Loop, excluding Northern Indiana
If you have a pocket listing for commercial land that meets the above requirements, please contact me at thall@rubloff.com or 773 572 4418.

Thanks!

Tom