Sugar Grove has a reputation of being the “next” community on the forefront of development pushing outwards from Chicago. For the most part, it’s still known as a small farming community. However, in The Lakes of Bliss Woods, what they’re growing are beautiful and stylish custom homes. Located in the northeast part of the community next to the nearby communities of Windstone and Prestbury, The Lakes of Bliss Woods can be reached by heading southwest on Bliss Road from I-88 or northeast from Route 47 and downtown Sugar Grove.

At about 165 homes, The Lakes of Bliss Woods isn’t one of the largest Sugar Grove subdivisions, yet it has a great community of active and responsible residents. This picturesque community features manicured lawns, 3 parks and several ponds. Most of the homes in this subdivision are custom-built by several builders. They often feature some of the latest design styles and range from the low $400,000 to above $500,000. For those who think of Sugar Grove as the sleepy farm town out past Aurora, take a drive through The Lakes of Bliss Woods. What you’ll find is elegance, style and comfort - perfect for home buyers looking for these things in a smaller community setting.

The Tanner Trails subdivision located off of Tanner Road in North Aurora is finally nearing completion despite a bankruptcy filed by the primary builder - Neumann Homes in October 2007. Many residents were concerned with the unfinished status of several of the streets and parks. However, in a decisive move, the Village of North Aurora utilized credit extended on the behalf of Neumann Homes to complete several projects around the community. The end result is an excellent community of just over 500 homes on over 350 acres of land surrounded by several parks, conservation areas and area hiking and biking trails.

Initial construction began in 2003 at Tanner Trails and it instanly became a popular place for buyers seeking large new homes at a reasonable price. Escalating home costs in 2004 and 2005 pushed home values in the subdivision from the low to the high $300,000’s yet interest in the homes remained brisk, even through the beginning of the market downturn in 2006. Currently, Tanner Trails represents a great place to look for resale values. Due to the size of the community, competition from the number of homes on the market continues to drive home prices downwards. If you’re looking for North Aurora homes for sale, make sure you keep Tanner Trails at the top of your list.

Buyers really have it good in today’s market. In some cases, too good. I have found in several circumstances that the extreme number of homes on the market right now is causing an interesting problem. The wide selection of choices available is causing some buyers to get “burnt out” of house hunting.

The problem begins with the buyers trying to see every home available in a certain market range. While this sounds like a pretty good strategy if you’re buying a home, consider that depending on the area and price range, a search of all homes available could yield hundreds of homes in the initial search with between 5 and 10 new homes appearing for sale every day. At first, buyers feel like kids in the candy store, but soon realize that going through hundreds of homes takes a lot of time and energy. Unfortunately this has caused many buyers to just give up on hunting altogether in frustration.

Back when we were at the crest of the housing wave and homes were selling rapidly, seeing every home out there made sense - there was less selection and buyers needed to often make quick choices. This made a “larger to smaller” approach to home searching make sense - there was a much smaller pool. In today’s market where there is an extreme housing glut, a “smaller to larger” approach makes more sense.

Buyers have to shift gears and be more selective in the initial searches. There are many great homes to choose from so chances are, you’ll be able to find exactly the home you’re looking for - it pays to be really picky in the beginning. If you don’t find what you’re looking for at first, then widen the search. Just remember a couple ground rules: the good homes still go fast even in today’s market. If you spend a week going through all your choices, by the end of that week, some of the best ones on your list will be gone. It’s better to start with a smaller list and add to it if you don’t find what you’re looking for. Also, don’t be afraid to go ahead and make an offer if a home you see fits your picture. I’ve worked with buyers that found the perfect home but wanted to continue to look and see “what else is out there” only to find that 3 days later, another buyer bought their perfect home while they were out looking at dogs. DONT LET THIS BE YOU!

Finally, it’s very important that you work closely with your REALTOR and be specific about your search requirements. If you’d only buy a home with a basement, it doesn’t make sense to see homes without one. If you’re thinking of looking for a home to buy this year, I’d love to talk to you about how I can make the search process easier. Just give me a call and I’d be happy to meet with you: 630-346-1041.

If you’re shopping in the $400-500,000 range, you really have the run of the store. You can pretty much choose your community, area and style of home. If a new home is on your shopping list, you might want to consider one of the custom homes located in The Reserves at Tanner Trails in North Aurora. There are currently several spec homes and builder models available in this community of custom and semi-custom homes located at the far western edge of North Aurora real estate.

R.A. Faganel Builders is currently offering a 4BR/2.5BA full-brick-front custom spec home packed with upgrades for around $435,000 and they’re also offering their builder model for sale featuring 4BR/3.5BA and over 3300 square feet with a natural stone front - also packed with upgrades for around $520,000. Another builder currently offering a spec home is Wyndham Deerpoint Builders who are offering a fully-built Richmond floorplan spec home featuring a gourmet kitchen with granite tops, 2-story fireplace and 4BR/4BA for right around $450,000. These prices and availablility is highly subject to change, so if you’re in the market to buy, jump on one of these deals before they’re gone.

I’ve seen a lot of folks predicting a lot of things about the housing market. First, know that real estate is local. Market conditions in other parts of the country will change differently than our area. I feel it’s impossible to “peg” the market in general as far as what’s going to happen. However, in our area, I see a lot of optimism for this year. Let’s take a look at the factors:

There hasn’t been a lot of market activity over the past couple years. Buyers have been waiting for a good deal. Foreclosures are moving briskly but there’s an ever-plentiful supply. This has made it difficult to impossible for existing home owners to move. This pressure has created pent-up demand in the market.

Mortgage rates are extremely low right now. Close to the levels they were back in 2005 before Greenspan messed them all up. Lenders have tightened restrictions but those that can buy will be getting a good deal on loan rates.

There is increasing national attention being put on the housing crisis and the extreme number of foreclosures. The government may be stepping in at some point this year to stem the tide of foreclosures. Once the foreclosures slow, values will begin to rise.

Rentals are now getting harder to find and rent prices are rising. Rent prices are now getting higher than the cost of owning a condo or single-family home. This increases the number of buyers in the market as renters decide it’s better to buy than pay more in rent.

We’re now entering the spring market - a naturally busy time. This should reduce inventory as buyers begin to take up the slack. If the number of foreclosures begins to slow, we’re going to see a further reduction in inventory for the fall. This points to the possibility of an uptick in the market beginning this fall. I predict conditions will remain flat during the spring and summer as the existing inventory begins to be eaten up by buyer demand but this fall we should see a slightly better market.

What does this mean for home buyers? If you haven’t yet entered the housing market, now is the time. You want to buy when the market is at or close to bottom - not after it has started to recover. If you’re looking for the point at where there’s the biggest inventory at the lowest prices, put yourself in the position to purchase this spring and summer.

The foreclosure “crisis” we’re experiencing now (up 57% in some areas from 2007 levels) is affecting everyone - not just the homeowners who’s lives and credit are turned upside down by this unfortunate experience. If everyone knew how much this situation is affecting everyone, there might be more impetous to solve things. Here’s a quick breakdown of how the current situation is affecting YOU:

As homes go under foreclosure and banks take possession of the homes, they are eventually listed on the market at 20-30% under market value. Because of the limited number of buyers right now, this might mean that out of 20 homes in a subdivision currently on the market 3-4 might be foreclosures priced at 20-30% under the others. These mostly aren’t homes that are “torn up” in the traditional foreclosure sense - these are often homes in good condition. For a buyer that sees two homes that are very similar but one is priced 20-30% lower, the choice is obvious. What this means for homeowners trying to sell homes is that they’re forced to compete with the foreclosures and drop prices or not sell. This drops market values in an area as sellers have to constantly compete with a continuous stream of foreclosures. The homeowners pay for this crisis with dropping home values.

For buyers, purchasing a foreclosure at 20-30% under market value sounds like a sure thing. However, many buyers that haven’t contacted a loan officer in a while might be suprised to find that they can no longer qualify for a loan. Due to tightening restrictions on income ratios, credit scores and downpayment requirements, many buyers who want to buy and may be capable of affording a home will not be able to get a loan. Also, for the buyers that can get a loan, banks are borrowing money from the federal government at a greatly reduced rate (everyone’s been hearing about the dropping fed funds rate) and then turning around and lending that money to buyes at higher rates (rates have stayed the same or slightly risen while the fed funds rates has dropped) in order to generate more income on the loans being writted and to offset the losses taken by the increased number of foreclosures. The buyers pay for this crisis with tightened restrictions on loans and higher interest rates.

Of course, the most highly impacted party in a foreclosure is the homeowner being foreclosed upon. Not only do they have to endure a severe lifestyle change, but credit scores will be greatly damaged by a judgement of foreclosure. This means that they will be unable to buy for the foreseeable future (especially with increasingly-tightening lending restrictions). All of the foreclosures and buyers unwilling to commit to a purchase have driven up rental prices and made rentals hard to find. This compounds the problem by forcing families that have been foreclosed upon to pay more for a place to live.

This foreclosure “crisis” we’re currently experiencing has a ripple effect that touches everyone - no matter who you are. If you don’t feel it now, you soon will as your home value drops or rent goes up. It’s time for everyone to take responsibility for this mess and make the right moves to get these homeowners some help or otherwise reduce the rate of foreclosure for everyone’s sake.