There was an important piece of economic news last week that has HUGE significance for real estate and housing, but it got minimal coverage on TV and in print.

The Conference Board’s Index of Leading Economic Indicators, widely acknowledged as the most accurate predictor of future activity and output in the U.S. economy, rose by almost a point in June.

That was the third straight month of positive growth. But more importantly, it was the first time since 2004 that the index has increased for three consecutive months.

That’s crucial for real estate because housing sales, production and prices are closely tied to movements in the overall economy: jobs, manufacturing, exports, household incomes and the like.

There’s no way we’re going to see a sizable housing recovery until the economy pulls itself out of recession and starts to grow again.

The index of leading indicators is clearly telling us that that process is well underway — and that’s a very encouraging message.

Federal Reserve Chairman Ben Bernanke, in testimony before Congress last week, pretty much said the same: A modest recovery is not far off, he said, though it will take a long time to get unemployment levels back down to pre-recession levels.

Meanwhile, residential real estate continues to put up impressive numbers on the tote board:

New single family housing starts in June rose by 14.4 percent — the fourth straight month of increasing activity by home builders, who’d previously shut down construction because they hadn’t sold off their inventories. And they were afraid consumers wouldn’t pay the prices they need to charge.

Those worries are over. Total starts in New England were up by 29 percent and in the Midwest by 33 percent. Builders report seeing much more traffic at their subdivision showrooms, far lower fallout on contracts, and rising sales.

Sales of existing homes were up in many areas for the month as well – rising by 3.6 percent nationwide in June, according to the National Association of Realtors. Lawrence Yun, chief economist for the association, commented that “we expect (this) gradual uptrend in sales to continue” thanks to the $8,000 home buyer credit, favorable mortgage rates and low prices.

New mortgage applications to buy houses continued to increase last week, according to the Mortgage Bankers Association, even though rates edged slightly higher. Thirty-year fixed rates averaged 5.3 percent and 15-year rates averaged 4.8 percent for the week, both up by two-tenths of a percentage point.

All in all, the numbers are looking better and better.

K. Harney

2 Story, 3bedroom home in Glenview. Located on a private serene 60x 167 deep lot this home accentuates the nature surrounding your home. There is a full size deck and separate patio overlooking your yard and if you would like to sit in front, there isa wrap around porch as well. The first floor has hardwood floors throughout and a lovely kitchen with eat-in area and separate spacious dining room. The family room also has sliding doors to your back deck with a stunning oak staircase leading to the 2nd level. This second level addition contains 3 spacious bedrooms, full bathroom and a laundry closet as well for added convenience. To view the many pictures we have to offer please visit us at www.helenoliverihomes.com and call today 847-967-0022 to schedule a private tour of this home.

This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/4712lilac/

Lovely 2 story home with updated kitchen and fireplace in your oversized living room and dining room. This home has 4 bedrooms and 2 full bathrooms. Come and see what this home has to offer and bring your finishing touch. No survey or disclosures. Buyer responsible for any/all compliances, escrows etc if required. All inspections including systems tests are at buyer’s expense. All offers require pre-approval & EM due in certified funds at acceptance. Seller addendum required before submitting offer. Cash deals require proof of funds.

This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/4709avers/

Spacious and Large Covington model in the Timbers Glen. This 2000+ sq.ft. townhome boasts 3 large bedrooms and 2.5 bathrooms with a attached 2.5 car garage and a private fenced in patio area. Home has all the updates you need including a lovely kitchen with stainless steel appliances and granite counters and a breathtaking 2 story family room and foyer. Your second level graces you with a spacious loft and 2 large bedrooms and oversized office which can be converted to 4th bedroom if needed. View the many pictures we have to offer at www.helenoliverihomes.com and call today 847-967-0022 and schedule a private showing of this wonderful townhome.

This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/4402lainie/

Question: I was recently fined $300 for not letting the board know about a tenant moving into the HOA within a timely manner (I did so within a week). Isn’t there a grace period of sorts to allow for communicating this information? Also, $300 seems excessive.

Answer: A $300 penalty is not reasonable. This is the kind of fining policy that would probably cause a judge to revoke the entire fine and fine the HOA for having such a policy for such a petty issue. Fines should be reasonable and “fit the crimes”.

Question: Our HOA recently completed a major reconstruction project and the board would like to celebrate the event with a barbeque. Can the HOA pay for the function or should we have a potluck?

Answer: Budgets for most HOAs are barely enough to cover required expenses, much less socials. Unless the HOA has a social budget, it should be potluck.

Question: Our parking rules do not allow vehicles with dual axles to be parked on the property. But we now have quite a few residents that drive pickups so equipped.

Answer: Restricting certain kinds of vehicles is usually due to size (like an RV), commercial use (like a contractor’s truck) or recreational use (like a boat). Since parking in most HOAs is a limited commodity, it makes sense to limit parking to automobiles, van and small trucks in residential use. Some small trucks these days have dual axles so rather than focus on the axles, the rule should be interpreted according to vehicle size. The board has the authority to amend parking rules and it sounds like it’s time to do just that. There is a sample Parking Policy in the Policy Samples section of Regenesis.net.

Question: We have a situation where residents are placing “Children at Play” signs on the streets to slow down the traffic. However, the board is confiscating the signs. What is the board’s responsibility to control children playing in the streets?

Answer: It is the parents’ responsibility to supervise and control their children. They should never allow them to play in the street (like “duh”). But as long as the signs are temporary (only placed when the kids are out near the street), the board should not restrict them. Some things, like slowing traffic, is good for all residents.

R. Thompson

Large 1 bedroom, 1 bath Condo on Lake Shore Drive. This unit features lovely views of the lake and park. Granite floors in kitchen and foyer welcome you. Unit had been updated overtime with crown molding in the living room and lovely décor throughout the unit. This building is full service with valet parking, fitness center, salon, shopping area, meeting/party room, picnic/grill area, and state of the art laundry facilities. View the many pictures we have to offer at www.helenoliverihomes.com and call today 847-967-0022 to schedule a private tour of this lovely unit.
This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/3600lakeshoredrive1608/

Lovely & spacious 2 bedroom, 2 bathroom townhome with an attached 2.5 car garage. in Private Community. Kitchen has wonderful eat in area & plenty of cabinet & counter space. Living and dining room combination with gas fireplace, plush carpeting and high ceilings. Also, an office /den area and a master bedroom with cathedral ceilings and connecting master bath with Jacuzzi tub and separate shower. Community also has many amenities for you to enjoy. View the many pictures we have to offer at www.helenoliverihomes.com and call us today at 847-967-0022 to schedule your private tour today.
This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/3046lexington/

A plan that first surfaced a couple of years ago, aimed at allowing foreclosed homeowners to remain in their homes as renters, is gaining greater attention today. “The basic point is you’re recognizing an unusual situation so you’re temporarily changing the rules on foreclosure,” says co-director of the Center for Economic and Policy Research, Dean Baker, who first proposed the plan.

He says foreclosures are rising and nothing else appears to be working. “As it stands now, if I hold the mortgage on a house and the person hasn’t met the payments, I go to the judge and say ‘Look this person hasn’t met the payments.’ The homeowner is given a certain number of days and, if payments aren’t met by then, the house is mine. I throw [the homeowner] out on the street,” says Baker.

Baker’s plan proposes to change the rules of foreclosure for a limited period of time.

“Mortgages issued 2002 to 2006 or 2007, whatever time period we want to put in there. For those mortgages we’re going to recognize the unusual situation and say that if I want to foreclose on that person, I have to give [the homeowner] the option to stay there as a renter,” explains Baker.

The length of the rental period would be determined by Congress if the proposed bill passes. “My view is you want it to be as long as possible — seven years or 10 years — a lot of people wouldn’t take advantage of that whole time but the point is to give people substantial security in their home so they can stay there for a period of time as renters, paying the market rent. They’re not getting a subsidized rent,” says Baker.

The plan also binds buyers of the foreclosed property to commit to allowing the former homeowner to remain as a tenant for the rest of the guaranteed period. According to Baker, the important thing to note is the many benefits that this plan can bring for neighborhoods and property owners in those areas as well as those facing foreclosure.

“The absolute worst thing you could have happen for a neighborhood is to have vacant properties and, of course, in a lot of these areas you have a lot of vacant properties. Banks often don’t care for them well. They don’t see to it that the grass is mowed, that broken windows are fixed or boarded up. Sometimes houses become crack houses or there are squatters there. So it’s the worst thing in the world to have a foreclosure and have a house sit vacant and in many places that’s exactly what’s happening,” says Baker.

But Baker says that this plan may actually keep people in their homes and also let them remain homeowners. “I think a lot of banks will suddenly get serious about modifying loans if the alternative is being a landlord for five years. So, I think it will keep more people in their homes as owners but certainly it’s also better to have a neighborhood that has renters in those houses than have them staying vacant.” However, Baker says banks still may feel the loss. “There is a neighborhood effect that if you prevent foreclosures and keep homes occupied, [the banks] may actually benefit. But in any specific home, if [the banks] kept everyone else from foreclosing but they themselves got the right to foreclose, they’d probably be better off foreclosing and throwing the person out. So the banks weren’t happy about [the proposed plan],” says Baker.

And the public? Well, these matters can be very touchy. “When you talk about the bailout programs, the modifications that involve public money, it really breeds a lot of resentment,” says Baker.

Baker says, “You have someone saying, ‘Well, I’ve been paying my mortgage why should I subsidize this person who’s not?’” However, he says that’s not the case with the right to rent plan. Baker says that non-delinquent homeowners should understand that taxes aren’t being raised to support the plan.

“The biggest selling point is that it doesn’t require any bureaucracy, just that you change the rules and you’ve instantly empowered millions of homeowners who otherwise could just be foreclosed with no recourse. Now they have something that they can hang on to,” says Baker.

P. Chongchua

Beautiful newer 2 bedroom, 2 bathroom Townhome with double balconies and an attached 2.5 car garage. This unit is over 1700 square feet with a finished lower level and a kitchen that is perfect for you. This kitchen features 42 inch cabinets, granite counters, stainless steel appliances and center island with breakfast bar. The living room has a lovely oak railing overlooking your foyer and is the perfect room for entertaining. There are hardwood floors throughout the lower level and main levels. The second level features the master bedroom and second bedroom both with ceiling fans and a full bathroom with dual vanities and Jacuzzi tub. Also for convenience the second level has a laundry closet with stackable washer and dryer. View the many pictures we have to offer at www.helenoliveri.com and call today 847-967-0022 to schedule an appointment to view this wonderful townhome.
This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/2919natoma/

Updated Bi-level home on Tree-Lined street. This home features lovely hardwood floors throughout the first and second levels and a gorgeous cook’s kitchen with stainless steel appliances, granite counters and 42inch maple cabinets. Large family room has custom closets and an updated lower level bathroom and exterior access to patio. This home also boasts a spacious 60 x 168 yard and side drive to your attached garage. Come and see what this wonderful home has to offer. Call today 847-967-0022 and schedule your private appointment with Helen to see this wonderful home or view the many pictures we have to offer at www.helenoliverihomes.com.

This property is exclusively listed by Helen Oliveri of Keller Williams Realty. For a private showing call 847-967-0022 or email helen@helenoliveri.com .

Click here to view this home’s photos: http://helenoliveri.com/photogallery/251fernwood/