TOM & CYNDEE
BROWNER - CRS,
ABR, GRIQUAD CITIES REAL ESTATE WITH RE/MAX
SERVING THE ENTIRE IOWA AND ILLINOIS QUAD CITIES ............................................................
DAVENPORT - BETTENDORF - ROCK ISLAND - MOLINE AND SURROUNDING COMMUNITIES
TOM & CYNDEE
BROWNER - CRS,
ABR, GRI
BROKER OWNERS RE/MAX BI-STATE - 1-563-388-0008 OR CALL US AT 570-7629
Have a question? The answer is just a call or e-mail away. Contact us at tom&cyndee@quadcitiesrealestate.com As we look through the volumes of paper and magazines that cross our desk, we occasionally see something that catches our attention. So here are some things that we thought you might find interesting.
REAL ESTATE NEWS
NAHB ECONOMICS DATA SHOWS QUAD CITIES #4 IN AFFORDABILITY
In analysis of sales transaction data, NAHB found these five metro areas were the most affordable in the United States for real estate housing.
The places you do not want to live because they are the most expensive in housing are:
Q C REAL ESTATE PRICES SURGE
The Quad Cities is listed as one of the 12 most affordable metropolitan areas amongst 132 listed. In 1998, we saw the second highest appreciation in the nation as computed the last quarter of 1998 versus 1997, only surpassed by Lansing, Michigan at 15.5%. The Quad Cities showed a 13.3% increase from 1997 to 1998. The median price for an existing home is now $81,100, (half the sales of all homes above and below this number). This compares to $131,000 for median home prices nationally.
Homes are increasing in value due to the strong demand in the Quad Cities which includes, Scott County, Iowa and Rock Island, Mercer and part of Henry County in Illinois. The economy is strong and with so many working in combination with low interest rates, home demand is very high. There is a shortage of nice available homes in almost every price range and this is creating higher prices. About 4000 homes changed hands in the Quad Cities last year. Currently we are averaging about 1200 homes on the market, a three month supply.
The highest median home price in the nation is San Francisco at $325,800, followed by the Los Angeles area at only $264,500; Boston at $214,900; San Diego at $209,200 and Bergen county, New Jersey at $208,200.
IOWA COURT ORDERS A HALT TO ADVERSE COMMISSION
On February 2, Iowa District Court Judge Richard G. Blane, II, issued a temporary injunction ordering a large realty firm in Des Moines, Iowa to halt the practice of imposing alleged discriminatory commission splits, sometimes called "adverse splits", against three other locally based residential real estate brokerage companies in Des Moines. The court found that the "reduced" split offered by the defendants in that case was tantamount to a refusal to deal and amounted to an exploitation of their monopoly power. The court rejected the defendants' argument that the adverse splits promoted efficiency. Instead, it found that the adverse splits were an attempt to prevent alternative forms of realty competition and resulted in a "closing off" of certain consumers from a segment of the market. The Iowa decision is the second major court finding in the past year addressing the legality of so-called adverse commission splits.
IOWA AND THE FARM ECONOMY
Back in 1934 there were over 223,000 farms in Iowa. The Quad Cities was a focal point for the farm economy with John Deer, Caterpillar, Case, International Harvester and their component suppliers driving our economy. At of 1997 there are only 98,000 farms in Iowa and this includes anyone who sells over a $1,000 in agriculture commodities, so the real number is less. Only 56,256 full time farms are now in operation, a 16% decrease since 1992. As a result, to make it, farmers have become bigger. The average farm is now 339 acres versus the 160 acres in 1934. This 160 acres was the same as homesteaders where allowed to claim when the region was opened up to settlement in the 1800's. In 1910, Iowa farmers were tilling 34.5 million acres compared to only 32.2 million acres now. With fewer farmers and larger farms, demand for farming equipment decreased, resulting in Iowa's attempt to diversify it's economy.
INTEREST RATES ARE GOING UP
Since Ronald Regan brought down interest rates in the second year of his first term, home buyers have enjoyed 6.5 to 7.5% interest rates. This week rates went up to 8% for the first time in the past 17 years. Although 8% is still a full percent lower than 24 years ago, it is a shock to those who wish to move up into larger homes. Rates may meander up and down a little in the near term, but the wise buyer will buy now and not chance the possible 9 - 12% rates that may be coming. Buyers have been spoiled by the record low rates in past years. Many do not remember the 12% rates that were so common for many years or the 18% rates under Jimmy Carter. In the near term, locking interest rates on the dips will be possible, but the threat of higher rates will also exist. Those lower rates just may not materialize.
STUDENT HOME BUILDING PROGRAM BACK
Between 1974 and 1985 high school students build 11 homes. The program was sponsored by the Greater Davenport Board of Realtors in cooperation with schools, unions, the home builder organizations, and government officials. The hands on program was well supervised and the homes were sold to defray expenses and pay for the program. Fourteen years ago the economy stopped the program as building was frustrated by the farm equipment down size and abandonment in our area.
Good ideas are hard to kill, and today a new program has been launched to train high school students in the manual arts of home building. The new program with involve Scott Community College and the Davenport and North Scott high school students, Quad City Bank and Trust, Steve Shalk attorney and developer supplied a lot, and The Greater Davenport Board of Realtors. The old program concentrated on carpentry, but the new program will tackle training in all the trades necessary to build a new home. Scott County Community College will offer credit to participating students into their Construction Management curriculum.
Participation is limited to Junior and Seniors who enroll through their guidance counselors.
NEW IMAX THEATRE
The Punam Museum has announced their intention to build an IMAX Theatre complex to open about the time the New Art museum opens. The theatre will be one of only a few in the nation and will cater mostly to educational movies. Most IMAX movies run about 45 minutes. Currently there are about 197 IMAX theatres in the world. Cedar Rapids and Chicago also have similar theatres.
JUST IN TIME FOR THE MILLENIUM
In 1900 the median home price was only $4000 and the annual household income was $455. Most buyers paid cash. Home loans could require as much as 50% down and were expected to be paid off within 5 years. Such loans were were common if you could find a lender to give you one. Loan funds you see were relatively scarce as local building and loan societies could only loan from their own deposits. There were few appraisers.
For some fascinating stats on 1900 as compared with today, go to the Census Bureau's 1999 Statistical Abstract of the United States at their web site http://www.census.gov/prod/www/statistical-abstract-us.html then scroll down to section 31 on 20th Century Statistics.
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