Ballpark Figures
Online home values often come out of left field DECEMBER 2011
About the only online segment growing faster than Cyber Monday sales might be real estate search websites such as Zillow.com, Realtor.com and Homes.com. One reason for the huge gains in web traffic (the above three sites now draw approximately 50 million unique visitors per month - and growing) is the home-valuation tools many of these sites offer. Resources like Zillow.com's Zestimator have become the first place many consumers turn in order to gauge the value of their own home or one they're considering buying.
Online value estimators are certainly interesting and more than a little entertaining. But they aren't the best way (and, in many cases, not even a good way) to get an accurate picture of a home's market value. A recent article in The Wall Street Journal pointed out that online home valuation models can "veer off target with alarming frequency." And most of the websites themselves acknowledge the potential for inaccuracies.
For example, Zillow features an accuracy table that rates the site's pricing estimates for major metro areas on a scale of one to four stars. Chicago is a three-star market for accuracy. The site claims that 78% of Chicago-area Zestimates fall within 20% of the actual sale price, and there is an average margin of error of 7.9%. Of course, that's for the entire metro area. What do those stats tell you about the accuracy of price estimates in your town, your neighborhood or your block?
To put it another way, if your real estate agent told you that slightly more than one in five of their pricing analyses missed the mark by 20 percent or more, you'd probably go out and find yourself another agent. Which begs the question... Why not call your agent in the first place?
If Zillow can give you a "three-star" guesstimate of your home's value, then a full-service professional REALTOR®, who's working from up-to the-minute MLS data, walks through dozens of homes each month, and has knowledge of those homes that can't be found in the public record, is probably worth five stars at least!
Of course that's not to say these websites and their home valuation models aren't relevant. Full disclosure - @properties advertises on many of these sites because we do recognize their value to the consumer. Sites like Zillow, REALTOR.com and Trulia have invested millions of dollars in developing excellent search technology. And it's important to recognize that online valuation tools are new. Algorithms are constantly being updated, and the better sites encourage participation from their user communities to acquire more data on individual homes. Over time, online valuation models can only get better.
Ultimately, however, the best estimate of your home's value will come from a professional REALTOR®. And you don't have to be buying or selling right this minute to get that information. I'm happy to provide an informal estimate or a thorough comparative market analysis anytime - even if you're just curious. Just pick up the phone and call me, or send me an e-mail or text.
On a final note, let me take this opportunity to wish you a very happy holiday season and a joyous New Year. I value our continued relationship and I'm grateful for your support. If I can be of assistance to you, your family or friends in 2012, please let me know. And remember that I always appreciate your referrals.
Tuesday, December 20, 2011
Monday, November 21, 2011
Own For The Holidays
Own For The Holidays
Benefits of homeownership endure even in tough times NOVEMBER 2011
Unbelievably, the holidays are already upon us. We've barely enjoyed Indian summer, and it's already time to order the turkey, invite the relatives, and spruce up our homes for Thanksgiving. Does your pre-holiday to-do list include painting your dining room "yam orange" to match a favorite side dish? If so, better hope you're a home "owner" rather than a home "renter," or your landlord may enforce a "mashed potato beige" color scheme.
In addition to free rein on decorating, home ownership has other distinct advantages. These days, believe it or not, that includes affordability. That's right. Trulia's Rent vs. Buy Index tells us that Chicago ranks as a city where it is more affordable to buy than to rent. Why?
Skyrocketing apartment demand for starters. Crain's Chicago Business (10/31/11) reports that 2011 will be the strongest year for local apartment-investment sales since the end of the housing boom. As a result, landlords are pushing rents and good apartment deals are increasingly hard to find.
Also, as consumers continue to feel less than confident about where to invest harder-than-ever earned dollars, home ownership still represents a stable, long-term investment. Couple that with record low interest rates and yes, even the chance to build equity; and Chicago remains a good place to host a lifetime of Thanksgivings.
So, even though home prices haven't been rising at a rate that makes ownership as attractive as in years past, here's a toast to turkey and dressing amidst your yam-hued walls, and maybe even a few bucks leftover for Black Friday.
Wishing you and yours a Happy Thanksgiving and a joyous holiday season. And please remember that even though the holidays are here, I remain available for your real estate needs. I'd love to be thankful for your referrals as well!
•• We proudly share that @properties co-founder Michael Golden was honored as the 2011 REALTOR® of the Year by the Chicago Association of REALTORS® at the organization's inaugural gala held October 5 at Navy Pier.
•• On October 12 and 13, more than 60 @properties agents participated in "Extreme Makeover: Deborah's Place Edition," a two-day event to beautify the North Side location of Deborah's Place, Chicago's largest provider of supportive housing, services and programs exclusively for women. The organization is a 2011 @properties Friends & Neighbors Community Fund grant recipient.
Benefits of homeownership endure even in tough times NOVEMBER 2011
Unbelievably, the holidays are already upon us. We've barely enjoyed Indian summer, and it's already time to order the turkey, invite the relatives, and spruce up our homes for Thanksgiving. Does your pre-holiday to-do list include painting your dining room "yam orange" to match a favorite side dish? If so, better hope you're a home "owner" rather than a home "renter," or your landlord may enforce a "mashed potato beige" color scheme.
In addition to free rein on decorating, home ownership has other distinct advantages. These days, believe it or not, that includes affordability. That's right. Trulia's Rent vs. Buy Index tells us that Chicago ranks as a city where it is more affordable to buy than to rent. Why?
Skyrocketing apartment demand for starters. Crain's Chicago Business (10/31/11) reports that 2011 will be the strongest year for local apartment-investment sales since the end of the housing boom. As a result, landlords are pushing rents and good apartment deals are increasingly hard to find.
Also, as consumers continue to feel less than confident about where to invest harder-than-ever earned dollars, home ownership still represents a stable, long-term investment. Couple that with record low interest rates and yes, even the chance to build equity; and Chicago remains a good place to host a lifetime of Thanksgivings.
So, even though home prices haven't been rising at a rate that makes ownership as attractive as in years past, here's a toast to turkey and dressing amidst your yam-hued walls, and maybe even a few bucks leftover for Black Friday.
Wishing you and yours a Happy Thanksgiving and a joyous holiday season. And please remember that even though the holidays are here, I remain available for your real estate needs. I'd love to be thankful for your referrals as well!
•• We proudly share that @properties co-founder Michael Golden was honored as the 2011 REALTOR® of the Year by the Chicago Association of REALTORS® at the organization's inaugural gala held October 5 at Navy Pier.
•• On October 12 and 13, more than 60 @properties agents participated in "Extreme Makeover: Deborah's Place Edition," a two-day event to beautify the North Side location of Deborah's Place, Chicago's largest provider of supportive housing, services and programs exclusively for women. The organization is a 2011 @properties Friends & Neighbors Community Fund grant recipient.
Saturday, October 15, 2011
The "I's" HAVE IT
Inventory and Interest Rates Should Inspire Action Among Sellers and Buyers This Fall
OCTOBER 2011
The robo-signing scandal that rocked the real estate industry at the end of 2010 was one more black mark on the U.S. housing market. But in retrospect, it may wind up being the best thing that happened to home sellers this year.
That's because the resulting foreclosure moratorium kept hundreds of thousands of bank-owned properties off the market (thousands in the Chicago area alone) allowing inventories to fall throughout the year and alleviating some of the downward pressure on prices. In fact, a common, though somewhat unexpected, complaint from homebuyers in certain neighborhoods this year was that there just weren't that many quality choices.
However, it now appears that the nation's largest banks have addressed their processing problems, and the foreclosure market is ramping up again. According to Irvine, Calif.-based RealtyTrac, default notices rose 33% from July to August and were at their highest level in nine months. The 33% jump was the biggest single-month increase in default notices in four years.
The silver lining for sellers is that the increase in bank activity is focused on the early stages of foreclosures. Bank repossessions were actually down in August according to RealtyTrac. So there may be some time before this new wave of foreclosures works its way into the resale market.
Still with storm clouds potentially gathering, right now could be the best opportunity for the foreseeable future for sellers to make a deal. In the city of Chicago, Months Supply of Inventory (MSI) registered 7.4 months for September, its lowest level in more than two years. And more buyers can afford your home with 30-year conforming mortgage rates at a mouth-watering 4%. While sales rates typically slow in the fall and winter causing MSI to rise, the looming foreclosure inventory could throw off the curve and lead to an oversupply in certain markets next spring. Therefore, our advice to sellers this fall is to get your home in tip-top shape, price it in line with the market, and allow @properties' comprehensive marketing programs to generate maximum exposure.
A note to buyers: We have gotten so used to low mortgage interest rates that the 4% rates we're seeing today barely make headlines. Rates actually dipped as low as 3.75% late last month, and sub-4 rates have been popping up now and again into early October. Don't get caught napping. Today's rates are a huge deal, especially when coupled with lower home prices. Meanwhile, apartment rents continue to shoot up. Class A rents downtown are up over 15% during the last two years, and are expected to climb even higher. Whatever the future holds for home prices, the day-to-day economics of own vs. rent are looking more and more attractive to buyers.
Remember, you don't have to be buying or selling a home today to contact me with questions about the real estate market. I'm available to talk anytime, and I always welcome your referrals.
Dave Straub
@properties
773.255.3180
OCTOBER 2011
The robo-signing scandal that rocked the real estate industry at the end of 2010 was one more black mark on the U.S. housing market. But in retrospect, it may wind up being the best thing that happened to home sellers this year.
That's because the resulting foreclosure moratorium kept hundreds of thousands of bank-owned properties off the market (thousands in the Chicago area alone) allowing inventories to fall throughout the year and alleviating some of the downward pressure on prices. In fact, a common, though somewhat unexpected, complaint from homebuyers in certain neighborhoods this year was that there just weren't that many quality choices.
However, it now appears that the nation's largest banks have addressed their processing problems, and the foreclosure market is ramping up again. According to Irvine, Calif.-based RealtyTrac, default notices rose 33% from July to August and were at their highest level in nine months. The 33% jump was the biggest single-month increase in default notices in four years.
The silver lining for sellers is that the increase in bank activity is focused on the early stages of foreclosures. Bank repossessions were actually down in August according to RealtyTrac. So there may be some time before this new wave of foreclosures works its way into the resale market.
Still with storm clouds potentially gathering, right now could be the best opportunity for the foreseeable future for sellers to make a deal. In the city of Chicago, Months Supply of Inventory (MSI) registered 7.4 months for September, its lowest level in more than two years. And more buyers can afford your home with 30-year conforming mortgage rates at a mouth-watering 4%. While sales rates typically slow in the fall and winter causing MSI to rise, the looming foreclosure inventory could throw off the curve and lead to an oversupply in certain markets next spring. Therefore, our advice to sellers this fall is to get your home in tip-top shape, price it in line with the market, and allow @properties' comprehensive marketing programs to generate maximum exposure.
A note to buyers: We have gotten so used to low mortgage interest rates that the 4% rates we're seeing today barely make headlines. Rates actually dipped as low as 3.75% late last month, and sub-4 rates have been popping up now and again into early October. Don't get caught napping. Today's rates are a huge deal, especially when coupled with lower home prices. Meanwhile, apartment rents continue to shoot up. Class A rents downtown are up over 15% during the last two years, and are expected to climb even higher. Whatever the future holds for home prices, the day-to-day economics of own vs. rent are looking more and more attractive to buyers.
Remember, you don't have to be buying or selling a home today to contact me with questions about the real estate market. I'm available to talk anytime, and I always welcome your referrals.
Dave Straub
@properties
773.255.3180
Monday, October 10, 2011
Fall and Winter Home Maintenance Checklist
15 things for you (or the handyman) to tackle before winter sets in.
By Pat Mertz Esswein, Associate Editor, Kiplinger's Personal Finance
Read more: http://www.kiplinger.com/features/archives/fall-winter-home-maintenance-checklist.html#ixzz1aPW8kQ9Z
Become a Fan of Kiplinger's on Facebook
Now that fall is officially here, it’s time to prepare your home for cold weather. These steps, most of which you can do yourself, will lower your utility bills and protect your investment
Read more: http://www.kiplinger.com/features/archives/fall-winter-home-maintenance-checklist.html#ixzz1aPW3iYbE
Become a Fan of Kiplinger's on Facebook
1. Tune up your heating system.For about $80 to $100, a technician will inspect your furnace or heat pump to be sure the system is clean and in good repair, and that it can achieve its manufacturer-rated efficiency. The inspection also measures carbon-monoxide leakage.
If you act soon, you’ll minimize the chance of being 200th in line for repairs on the coldest day of the year. Look for a heating and air-conditioning contractor that belongs to the Air Conditioning Contractors of America and employs technicians certified by the North American Technician Excellence (NATE) program. The contractor should follow the protocol for ACCA’s "national standard for residential maintenance" (or the QM, short for “quality maintenance").
2. Reverse your ceiling fans. If your ceiling fan has a reverse switch, use it to run the fan’s blades in a clockwise direction after you turn on your heat. Energy Star says the fan will produce an updraft and push down into the room heated air from the ceiling (remember, hot air rises). This is especially helpful in rooms with high ceilings -- and it might even allow you to turn down your thermostat by a degree or two for greater energy savings.
3. Prevent ice dams.If your home had lots of icicles last winter -- or worse, ice dams, which can cause meltwater to back up and flow into your house -- take steps to prevent potential damage this year. A home-energy auditor or weatherization contractor can identify and fix air leaks and inadequate insulation in your home’s attic that can lead to ice dams. If you have the work done before December 31, 2011, you can claim the federal energy-efficiency tax credit for 10% of the cost (excluding installation), up to $500. Your state or utility may offer a rebate, too.
4. Hit the roof.Or at least scan it closely with binoculars. Look for damaged, loose or missing shingles that may leak during winter’s storms or from melting snow. If need be, hire a handyman to repair a few shingles ($95 to $1275, according to www.costhelper.com) or a roofer for a larger section ($100 to $350 for a 100-square-foot area). Check and repair breaks in the flashing seals around vent stacks and chimneys, too.
If your roof is flat and surfaced with asphalt and pebbles, as many are in the Southwest, rake or blow off fall leaves and pine needles, which hold moisture, says Bill Richardson, past president of the American Society of Home Inspectors, in Albuquerque. (Don’t sweep aside the pebbles; that will expose the asphalt to damaging sunlight.)
5. Caulk around windows and doors. Richardson says that if the gaps between siding and window or door frames are bigger than the width of a nickel, you need to reapply exterior caulk. (Check the joints in window and door frames, too.) Silicone caulk is best for exterior use because it won’t shrink and it’s impervious to the elements. Try GE’s Silicone II Window and Door product, which is “rain ready” in three hours ($6 at Home Depot). Check window-glazing putty, too (which seals glass into the window frame). Add weatherstripping as needed around doors, making sure you cannot see any daylight from inside your home.
6. Clean the gutters. If your gutters are full of detritus, water can back up against the house and damage roofing, siding and wood trim -- plus cause leaks and ice dams. You’ll typically pay $70 to $225 to clean gutters on a single-story house, depending on its size. Also look for missing or damaged gutters and fascia boards and repair them.
7. Divert water. Add extensions to downspouts so that water runs at least 3 to 4 feet away from the foundation, says David Lupberger, home-improvement expert for ServiceMagic, which connects consumers with service providers. For example, HomeDepot.com sells Amerimax Flex-a-Spout extension (which extends 25 to 55 inches) for $9.
8. Turn off exterior faucets. Undrained water in pipes can freeze, which will cause pipes to burst as the ice expands. Start by disconnecting all garden hoses and draining the water that remains in faucets. If you don’t have frost-proof faucets (homes more than ten to 15 years old typically do not), turn off the shut-off valve inside your home.
9. Drain your lawn-irrigation system. But call in a professional to do the job. Your sprinkler service will charge $75 to $150, depending on the size of the system. Draining sprinkler-system pipes, as with spigots, will help avoid freezing and leaks.
10. Mulch leaves when you mow. Mow your leaves instead of raking them, say studies at the University of Michigan and Purdue. The trick is to cut the leaves, while dry, into dime-sized pieces that will fall among the grass blades, where they will decompose and nourish your lawn over the winter. Use your lawn mower without its bag, and optionally swap the cutting blade for a mulching blade (about $15 to $20). The process may take several passes. For more information, see "Turn Over a New Leaf/Mulching Leaves in Place."
11. Prepare to stow your mower. As the mower sits through the winter, fuel remaining in its engine will decompose, "varnishing" the carburetor and causing difficulty when you try to start the engine in the spring. John Deere offers these preventive steps: If you've added stabilizer to your fuel to keep it fresh longer, then fill the gas tank to the top with more stabilized fuel and run the engine briefly to allow it to circulate. If not, wait until the tank is nearly empty from use and run the engine (outdoors) to use up the remaining fuel. Check your mower's manual for other cold-weather storage steps.
12. Don't prune trees or shrubs until late-winter. You may be tempted to get out the pruning shears after the leaves fall, when you can first see the underlying structure of the plant. But horticulturalists advise waiting to prune until late winter for most plants, when they've been long dormant and just before spring growth begins. To get advice specific to your plants and region, consult master gardeners at local nurseries or horticulturalists with your state university's cooperation extension department. One exception: You may need to hire an arborist to remove deadfall or trim limbs close to your home or power lines that could cause problems in a winter storm.
13. Test your sump pump. Slowly pour several gallons of water into the sump pit to see whether the pump turns on. You should do this every few months, but especially after a long dry season or before a rainy one. For more complete instructions for testing and maintenance, check your owner’s manual. Most sump pumps last about ten years, according to Chubb Personal Insurance.
14. Call a chimney sweep. Before you burn the Yule log, make sure your fireplace (or any heating appliance burning gas, oil, wood or coal), chimney and vents are clean and in good repair. That will prevent chimney fires and prevent carbon monoxide from creeping into your home. Search for a sweep certified by the Chimney Safety Institute of America. You can expect to pay $50 to $90 for an inspection to see if you need a cleaning, and $100 to $300 for the cleaning, according to www.costowl.com.
15. Avoid the rush. Don’t wait for the first winter storm to restock cold-weather essentials, such as salt or ice melt. If you can’t abide a snowblower’s roar or the back-breaking workout of shoveling, check out the Sno Wovel, a wheeled shovel that does much of the heavy-lifting for you ($150; go to www.wovel.com to locate retailers or Amazon.com to buy it online).
By Pat Mertz Esswein, Associate Editor, Kiplinger's Personal Finance
15 things for you (or the handyman) to tackle before winter sets in.
By Pat Mertz Esswein, Associate Editor, Kiplinger's Personal Finance
Read more: http://www.kiplinger.com/features/archives/fall-winter-home-maintenance-checklist.html#ixzz1aPW8kQ9Z
Become a Fan of Kiplinger's on Facebook
Now that fall is officially here, it’s time to prepare your home for cold weather. These steps, most of which you can do yourself, will lower your utility bills and protect your investment
Read more: http://www.kiplinger.com/features/archives/fall-winter-home-maintenance-checklist.html#ixzz1aPW3iYbE
Become a Fan of Kiplinger's on Facebook
1. Tune up your heating system.For about $80 to $100, a technician will inspect your furnace or heat pump to be sure the system is clean and in good repair, and that it can achieve its manufacturer-rated efficiency. The inspection also measures carbon-monoxide leakage.
If you act soon, you’ll minimize the chance of being 200th in line for repairs on the coldest day of the year. Look for a heating and air-conditioning contractor that belongs to the Air Conditioning Contractors of America and employs technicians certified by the North American Technician Excellence (NATE) program. The contractor should follow the protocol for ACCA’s "national standard for residential maintenance" (or the QM, short for “quality maintenance").
2. Reverse your ceiling fans. If your ceiling fan has a reverse switch, use it to run the fan’s blades in a clockwise direction after you turn on your heat. Energy Star says the fan will produce an updraft and push down into the room heated air from the ceiling (remember, hot air rises). This is especially helpful in rooms with high ceilings -- and it might even allow you to turn down your thermostat by a degree or two for greater energy savings.
3. Prevent ice dams.If your home had lots of icicles last winter -- or worse, ice dams, which can cause meltwater to back up and flow into your house -- take steps to prevent potential damage this year. A home-energy auditor or weatherization contractor can identify and fix air leaks and inadequate insulation in your home’s attic that can lead to ice dams. If you have the work done before December 31, 2011, you can claim the federal energy-efficiency tax credit for 10% of the cost (excluding installation), up to $500. Your state or utility may offer a rebate, too.
4. Hit the roof.Or at least scan it closely with binoculars. Look for damaged, loose or missing shingles that may leak during winter’s storms or from melting snow. If need be, hire a handyman to repair a few shingles ($95 to $1275, according to www.costhelper.com) or a roofer for a larger section ($100 to $350 for a 100-square-foot area). Check and repair breaks in the flashing seals around vent stacks and chimneys, too.
If your roof is flat and surfaced with asphalt and pebbles, as many are in the Southwest, rake or blow off fall leaves and pine needles, which hold moisture, says Bill Richardson, past president of the American Society of Home Inspectors, in Albuquerque. (Don’t sweep aside the pebbles; that will expose the asphalt to damaging sunlight.)
5. Caulk around windows and doors. Richardson says that if the gaps between siding and window or door frames are bigger than the width of a nickel, you need to reapply exterior caulk. (Check the joints in window and door frames, too.) Silicone caulk is best for exterior use because it won’t shrink and it’s impervious to the elements. Try GE’s Silicone II Window and Door product, which is “rain ready” in three hours ($6 at Home Depot). Check window-glazing putty, too (which seals glass into the window frame). Add weatherstripping as needed around doors, making sure you cannot see any daylight from inside your home.
6. Clean the gutters. If your gutters are full of detritus, water can back up against the house and damage roofing, siding and wood trim -- plus cause leaks and ice dams. You’ll typically pay $70 to $225 to clean gutters on a single-story house, depending on its size. Also look for missing or damaged gutters and fascia boards and repair them.
7. Divert water. Add extensions to downspouts so that water runs at least 3 to 4 feet away from the foundation, says David Lupberger, home-improvement expert for ServiceMagic, which connects consumers with service providers. For example, HomeDepot.com sells Amerimax Flex-a-Spout extension (which extends 25 to 55 inches) for $9.
8. Turn off exterior faucets. Undrained water in pipes can freeze, which will cause pipes to burst as the ice expands. Start by disconnecting all garden hoses and draining the water that remains in faucets. If you don’t have frost-proof faucets (homes more than ten to 15 years old typically do not), turn off the shut-off valve inside your home.
9. Drain your lawn-irrigation system. But call in a professional to do the job. Your sprinkler service will charge $75 to $150, depending on the size of the system. Draining sprinkler-system pipes, as with spigots, will help avoid freezing and leaks.
10. Mulch leaves when you mow. Mow your leaves instead of raking them, say studies at the University of Michigan and Purdue. The trick is to cut the leaves, while dry, into dime-sized pieces that will fall among the grass blades, where they will decompose and nourish your lawn over the winter. Use your lawn mower without its bag, and optionally swap the cutting blade for a mulching blade (about $15 to $20). The process may take several passes. For more information, see "Turn Over a New Leaf/Mulching Leaves in Place."
11. Prepare to stow your mower. As the mower sits through the winter, fuel remaining in its engine will decompose, "varnishing" the carburetor and causing difficulty when you try to start the engine in the spring. John Deere offers these preventive steps: If you've added stabilizer to your fuel to keep it fresh longer, then fill the gas tank to the top with more stabilized fuel and run the engine briefly to allow it to circulate. If not, wait until the tank is nearly empty from use and run the engine (outdoors) to use up the remaining fuel. Check your mower's manual for other cold-weather storage steps.
12. Don't prune trees or shrubs until late-winter. You may be tempted to get out the pruning shears after the leaves fall, when you can first see the underlying structure of the plant. But horticulturalists advise waiting to prune until late winter for most plants, when they've been long dormant and just before spring growth begins. To get advice specific to your plants and region, consult master gardeners at local nurseries or horticulturalists with your state university's cooperation extension department. One exception: You may need to hire an arborist to remove deadfall or trim limbs close to your home or power lines that could cause problems in a winter storm.
13. Test your sump pump. Slowly pour several gallons of water into the sump pit to see whether the pump turns on. You should do this every few months, but especially after a long dry season or before a rainy one. For more complete instructions for testing and maintenance, check your owner’s manual. Most sump pumps last about ten years, according to Chubb Personal Insurance.
14. Call a chimney sweep. Before you burn the Yule log, make sure your fireplace (or any heating appliance burning gas, oil, wood or coal), chimney and vents are clean and in good repair. That will prevent chimney fires and prevent carbon monoxide from creeping into your home. Search for a sweep certified by the Chimney Safety Institute of America. You can expect to pay $50 to $90 for an inspection to see if you need a cleaning, and $100 to $300 for the cleaning, according to www.costowl.com.
15. Avoid the rush. Don’t wait for the first winter storm to restock cold-weather essentials, such as salt or ice melt. If you can’t abide a snowblower’s roar or the back-breaking workout of shoveling, check out the Sno Wovel, a wheeled shovel that does much of the heavy-lifting for you ($150; go to www.wovel.com to locate retailers or Amazon.com to buy it online).
By Pat Mertz Esswein, Associate Editor, Kiplinger's Personal Finance
Tuesday, September 20, 2011
Illinois Launches Hardest Hit Program
The new Illinois Hardest Hit program aims to help working Illinois families who are having trouble making mortgage payments due to unemployment or under-employment stay in their homes. The Illinois Housing Development Authority (IHDA) has partnered with the U.S. Department of Treasury to offer temporary mortgage payment assistance. Qualified homeowners can receive up to $25,000 over 18 months as a 10-year loan to keep mortgages current and make ongoing payments, including fees and penalties. Go to
www.illinoishardesthit.org to learn more.
Friday, September 16, 2011
What Goes Down Must Come Up
Prices rise in some city neighborhoods SEPTEMBER 2011
Homeowners in a handful of Chicago neighborhoods can pop the cork on the champagne they've been saving for the housing market recovery. Meanwhile, there are still a number of areas where residents might want to reach for something harder.
A top-line review of year-over-year price changes and current inventory levels in 21 city neighborhoods (see chart below) paints a picture of a city still grappling with the 5-year-old housing downturn. But what might be surprising are signs of a turnaround in a number of Chicago communities, as well as recent data showing rising prices throughout the greater Chicagoland area.
Nowhere is the ground more solid than in North Center, located northwest of Wrigleyville, where the average price increased an eye-popping 13% year over year for the period ended 8/31. The big jump can be attributed to North Center's great fundamentals (schools, housing stock and transportation) and a resurgence in single-family new construction. Other neighborhoods where prices have been trending up are Lakeview, Logan Square/Bucktown and Near North, which includes River North and the Gold Coast.
On the other side of the coin are areas like Uptown and the South Loop, where average prices registered substantial declines and inventories remain high. In between are neighborhoods like Ravenswood, Forest Glen and Hyde Park, where prices are down slightly but inventories are vastly improved.
Big picture, the latest S&P/Case Shiller home price data for Chicago shows an improving market with two consecutive months of price increases (three for condominiums). And if Chicago as a whole is up on a monthly basis, that's good news even for neighborhoods that are down on an annual one. Let's hope the positive trend continues.
Of course, stats don't tell the whole story. It's important to look beyond the numbers and to remember that factors affecting price, market time and market fluidity vary not only from neighborhood to neighborhood, but also from block to block and even building to building.
In every neighborhood, homes are selling if they're priced, presented and marketed properly. So contact me if you have questions about buying, selling or anything related to real estate. And remember, I always appreciate your referrals.
Dave Straub
@properties
773.255.3180
Homeowners in a handful of Chicago neighborhoods can pop the cork on the champagne they've been saving for the housing market recovery. Meanwhile, there are still a number of areas where residents might want to reach for something harder.
A top-line review of year-over-year price changes and current inventory levels in 21 city neighborhoods (see chart below) paints a picture of a city still grappling with the 5-year-old housing downturn. But what might be surprising are signs of a turnaround in a number of Chicago communities, as well as recent data showing rising prices throughout the greater Chicagoland area.
Nowhere is the ground more solid than in North Center, located northwest of Wrigleyville, where the average price increased an eye-popping 13% year over year for the period ended 8/31. The big jump can be attributed to North Center's great fundamentals (schools, housing stock and transportation) and a resurgence in single-family new construction. Other neighborhoods where prices have been trending up are Lakeview, Logan Square/Bucktown and Near North, which includes River North and the Gold Coast.
On the other side of the coin are areas like Uptown and the South Loop, where average prices registered substantial declines and inventories remain high. In between are neighborhoods like Ravenswood, Forest Glen and Hyde Park, where prices are down slightly but inventories are vastly improved.
Big picture, the latest S&P/Case Shiller home price data for Chicago shows an improving market with two consecutive months of price increases (three for condominiums). And if Chicago as a whole is up on a monthly basis, that's good news even for neighborhoods that are down on an annual one. Let's hope the positive trend continues.
Of course, stats don't tell the whole story. It's important to look beyond the numbers and to remember that factors affecting price, market time and market fluidity vary not only from neighborhood to neighborhood, but also from block to block and even building to building.
In every neighborhood, homes are selling if they're priced, presented and marketed properly. So contact me if you have questions about buying, selling or anything related to real estate. And remember, I always appreciate your referrals.
Dave Straub
@properties
773.255.3180
Friday, September 2, 2011
4 Moves That Can Lower Your Credit Score
4 Moves That Can Lower Your Credit Score
You may be damaging your score without knowing it.
By Lisa Gerstner, Staff Writer
From Kiplinger's Personal Finance magazine, September 2011
Most people know that paying bills late can play havoc with your credit score. But not every move that shaves points from your credit score is so obvious.
1. Charging a big balance to a store card. You’re tempted to buy thousands of dollars’ worth of furniture or appliances and charge it all to a store credit card that doesn’t require payments for six months or even a year—and sometimes longer. But debt that sits untouched could drag down your score, especially if the balance is near the card’s limit, says John Ulzheimer, president of consumer education at SmartCredit.com. That’s because your credit-utilization ratio—the amount of debt you have relative to your credit limits—is calculated for balances on individual cards as well as overall. In addition, store cards tend to charge steep rates, so if you don’t pay the balance before the interest-free period is over, you will rack up big charges.
2. Trashing a parking ticket. Parking and speeding tickets, library fines, and other dues to the government left unpaid won’t go directly to your credit report. But if they are eventually reported to a collection agency, they could damage your score. That goes for anything that could go to collections, such as unpaid rent and medical bills. And even if you pay up, collections will appear on your report for seven years.
3. Stuffing your wallet with cards. If you’ve had a handful of cards for years, they won’t hurt your score. But if you open several new accounts in a short period, your score is likely to take a hit, and you may not benefit immediately from expanded credit limits.
4. Transferring a balance to a new card. The inquiry on your report from the new lender may shave a few points from your score, but the real problem is what you do with the old account. If you close it, your overall credit limit could go down, and your credit-utilization ratio will increase if you have debt on any remaining cards. Your best bet: Leave the old account open but keep a zero balance.
You may be damaging your score without knowing it.
By Lisa Gerstner, Staff Writer
From Kiplinger's Personal Finance magazine, September 2011
Most people know that paying bills late can play havoc with your credit score. But not every move that shaves points from your credit score is so obvious.
1. Charging a big balance to a store card. You’re tempted to buy thousands of dollars’ worth of furniture or appliances and charge it all to a store credit card that doesn’t require payments for six months or even a year—and sometimes longer. But debt that sits untouched could drag down your score, especially if the balance is near the card’s limit, says John Ulzheimer, president of consumer education at SmartCredit.com. That’s because your credit-utilization ratio—the amount of debt you have relative to your credit limits—is calculated for balances on individual cards as well as overall. In addition, store cards tend to charge steep rates, so if you don’t pay the balance before the interest-free period is over, you will rack up big charges.
2. Trashing a parking ticket. Parking and speeding tickets, library fines, and other dues to the government left unpaid won’t go directly to your credit report. But if they are eventually reported to a collection agency, they could damage your score. That goes for anything that could go to collections, such as unpaid rent and medical bills. And even if you pay up, collections will appear on your report for seven years.
3. Stuffing your wallet with cards. If you’ve had a handful of cards for years, they won’t hurt your score. But if you open several new accounts in a short period, your score is likely to take a hit, and you may not benefit immediately from expanded credit limits.
4. Transferring a balance to a new card. The inquiry on your report from the new lender may shave a few points from your score, but the real problem is what you do with the old account. If you close it, your overall credit limit could go down, and your credit-utilization ratio will increase if you have debt on any remaining cards. Your best bet: Leave the old account open but keep a zero balance.
Tuesday, August 23, 2011
Did you get out of bed today?
Did you get out of bed today?
I know what you're thinking. 'Here we go again. It's the Bear Market of 2008 back to punch us in the stomach and take our lunch money one more time. There goes the stock market. There goes the real estate market. There goes the global economy.'
Certainly the events of early August have been unsettling, even maddening. The triple whammy of a slowing U.S. economy, the ongoing European debt crisis and Standard & Poor's downgrade of U.S. credit has rattled an already fragile consumer confidence.
Lou Barnes, a mortgage banker from Boulder, Colo. said it best in an August 8 interview with The Wall Street Journal's Developments blog: "Who wants to get out of bed today, let alone buy a house?"
Yet a lot of people right here in Chicagoland did get out of bed today and buy a house. Why is that? Is it because the same fundamentals that existed yesterday - record low mortgage rates and record high affordability - still exist today? Is it because local apartment rents are rising faster than Starlin Castro's batting average? Or could it be that real estate (like our now AA+ rated US debt) is still considered a relatively safe long-term investment?
That's a radical concept in 2011. But an investment that can also shelter you and your family, provide a large tax deduction, serve as a hedge against inflation, and allow you to put down roots in a top community or school district has to be given serious consideration - especially if it comes at a discount of more than 33% off its peak value... especially if it's in the business, cultural, tourism and innovation hub of the Midwest... especially if you plan to live there for a while.
As it stands today, there are only 18 nations in the world rated AAA by Standard & Poor's. Among them are Guernsey, Liechtenstein and Isle of Man. I don't know about you, but I'd rather live in AA+ Chicago, Illinois, USA.
What will the stock market do tomorrow? What will the housing market do tomorrow? If we knew that, we'd all be sipping fruity drinks on our own private island. But if the last century of American economic history is any indication, the long-term trend is up. I believe that, which is why I'm in the real estate business. And @properties believes that, which is why we're continuing to invest in and expand our business even in tumultuous times.
As in 2008, we're keeping a cool head, focusing on hyper-local market conditions and framing most conversations about housing, not around the headline of the moment, but around your individual wants and needs at your particular stage in life.
I'm here to help, so please contact me if you have any questions or are getting ready to buy or sell. And remember I always appreciate your referrals.
I know what you're thinking. 'Here we go again. It's the Bear Market of 2008 back to punch us in the stomach and take our lunch money one more time. There goes the stock market. There goes the real estate market. There goes the global economy.'
Certainly the events of early August have been unsettling, even maddening. The triple whammy of a slowing U.S. economy, the ongoing European debt crisis and Standard & Poor's downgrade of U.S. credit has rattled an already fragile consumer confidence.
Lou Barnes, a mortgage banker from Boulder, Colo. said it best in an August 8 interview with The Wall Street Journal's Developments blog: "Who wants to get out of bed today, let alone buy a house?"
Yet a lot of people right here in Chicagoland did get out of bed today and buy a house. Why is that? Is it because the same fundamentals that existed yesterday - record low mortgage rates and record high affordability - still exist today? Is it because local apartment rents are rising faster than Starlin Castro's batting average? Or could it be that real estate (like our now AA+ rated US debt) is still considered a relatively safe long-term investment?
That's a radical concept in 2011. But an investment that can also shelter you and your family, provide a large tax deduction, serve as a hedge against inflation, and allow you to put down roots in a top community or school district has to be given serious consideration - especially if it comes at a discount of more than 33% off its peak value... especially if it's in the business, cultural, tourism and innovation hub of the Midwest... especially if you plan to live there for a while.
As it stands today, there are only 18 nations in the world rated AAA by Standard & Poor's. Among them are Guernsey, Liechtenstein and Isle of Man. I don't know about you, but I'd rather live in AA+ Chicago, Illinois, USA.
What will the stock market do tomorrow? What will the housing market do tomorrow? If we knew that, we'd all be sipping fruity drinks on our own private island. But if the last century of American economic history is any indication, the long-term trend is up. I believe that, which is why I'm in the real estate business. And @properties believes that, which is why we're continuing to invest in and expand our business even in tumultuous times.
As in 2008, we're keeping a cool head, focusing on hyper-local market conditions and framing most conversations about housing, not around the headline of the moment, but around your individual wants and needs at your particular stage in life.
I'm here to help, so please contact me if you have any questions or are getting ready to buy or sell. And remember I always appreciate your referrals.
Monday, August 15, 2011
Downtown apartment rents surpass previous boom
Downtown apartment rents surpass previous boom By: Alby Gallun August 15, 2011
(Crain's) — Life was good for downtown landlords before the recession hit four years ago, as rents hit record highs. It's even better now.
Rents at downtown buildings have already eclipsed the highs of the last boom and are likely to keep rising, fueled by a broad shift in the housing market away from condominiums and toward apartments.
“The market tightened faster than we expected, and the landlords responded in kind,” says Ron DeVries, vice-president at Appraisal Research Counselors, a Chicago-based consulting firm.
The average net rent at high-end, or Class A, buildings downtown hit $2.43 a square foot in the second quarter, up 6.1% from the first quarter and 9.5% from a year earlier, according to a new Appraisal Research report.
That also tops the peak of the last boom, $2.35 a square foot, in third-quarter 2007. Net rents include the impact of concessions like free rent, which are disappearing as buildings fill up.
The apartment sector is arguably the strongest in the local real estate industry, mainly because of the condo market's continued troubles. Some downtown dwellers in their 20s or 30s who normally would rent for a few years and then buy a condo are staying put, worried that condo prices have further to fall. Others no longer qualify for a mortgage.
The average Class A occupancy rate rose to 95.6% in the second quarter, up from 93.9% in the first quarter and 94.5% a year earlier. During the last boom, the occupancy rate peaked at 97.5%, in second-quarter 2006.
With demand for downtown apartments outpacing supply, developers are building once again: Construction on five projects comprising 1,718 units is under way, and at least a dozen more are in the planning phase. The question is whether developers' exuberance today will create a glut of apartments a few years from now, pushing occupancies and rents back down.
Mr. DeVries isn't concerned yet, saying net absorption — or the change in the number of occupied downtown apartments — is totaling about 2,000 units a year currently. Developers will build about 5,500 units through the end of 2014, or about 1,375 a year on average, well below the current rate of absorption, according to Appraisal Research.
Jerry Ong, principal at Chicago-based Jupiter Realty Corp., agrees, saying people also worried that an oversupply of condo rentals would depress the apartment market — a prediction that turned out to be wrong.
“I think there is some resiliency downtown, and that's a significant factor,” Mr. Ong says.
But won't rising rents and falling condo prices eventually work against landlords, drawing people out of apartments and back into condos? Not until the fear factor disappears, says Mr. DeVries.
“We just don't see that happening until demand comes back for the condos, and that's not going to happen until stability in (condo) pricing returns and the ability to finance the units like we used to is back in the market,” he says.
Rents at lower-quality, or Class B, apartment buildings also have risen, but not as much as they have in the Class A segment. Class B rents rose to $2.07 a square foot in the second quarter, up 6.2% from a year earlier.
The price difference between the A and B buildings is now the widest it has been since Appraisal Research has been tracking the downtown market. Mr. DeVries expects the spread to narrow in the coming months as some tenants get priced out of Class A properties.
“You are going to see some spillover from the A to the B as the price gets high,” he says.
Read more: http://www.chicagorealestatedaily.com/article/20110815/CRED02/110819921/downtown-apartment-rents-surpass-previous-boom#ixzz1V8uWqGQA
Stay up-to-date on Chicago real estate with our free, daily e-newsletter
(Crain's) — Life was good for downtown landlords before the recession hit four years ago, as rents hit record highs. It's even better now.
Rents at downtown buildings have already eclipsed the highs of the last boom and are likely to keep rising, fueled by a broad shift in the housing market away from condominiums and toward apartments.
“The market tightened faster than we expected, and the landlords responded in kind,” says Ron DeVries, vice-president at Appraisal Research Counselors, a Chicago-based consulting firm.
The average net rent at high-end, or Class A, buildings downtown hit $2.43 a square foot in the second quarter, up 6.1% from the first quarter and 9.5% from a year earlier, according to a new Appraisal Research report.
That also tops the peak of the last boom, $2.35 a square foot, in third-quarter 2007. Net rents include the impact of concessions like free rent, which are disappearing as buildings fill up.
The apartment sector is arguably the strongest in the local real estate industry, mainly because of the condo market's continued troubles. Some downtown dwellers in their 20s or 30s who normally would rent for a few years and then buy a condo are staying put, worried that condo prices have further to fall. Others no longer qualify for a mortgage.
The average Class A occupancy rate rose to 95.6% in the second quarter, up from 93.9% in the first quarter and 94.5% a year earlier. During the last boom, the occupancy rate peaked at 97.5%, in second-quarter 2006.
With demand for downtown apartments outpacing supply, developers are building once again: Construction on five projects comprising 1,718 units is under way, and at least a dozen more are in the planning phase. The question is whether developers' exuberance today will create a glut of apartments a few years from now, pushing occupancies and rents back down.
Mr. DeVries isn't concerned yet, saying net absorption — or the change in the number of occupied downtown apartments — is totaling about 2,000 units a year currently. Developers will build about 5,500 units through the end of 2014, or about 1,375 a year on average, well below the current rate of absorption, according to Appraisal Research.
Jerry Ong, principal at Chicago-based Jupiter Realty Corp., agrees, saying people also worried that an oversupply of condo rentals would depress the apartment market — a prediction that turned out to be wrong.
“I think there is some resiliency downtown, and that's a significant factor,” Mr. Ong says.
But won't rising rents and falling condo prices eventually work against landlords, drawing people out of apartments and back into condos? Not until the fear factor disappears, says Mr. DeVries.
“We just don't see that happening until demand comes back for the condos, and that's not going to happen until stability in (condo) pricing returns and the ability to finance the units like we used to is back in the market,” he says.
Rents at lower-quality, or Class B, apartment buildings also have risen, but not as much as they have in the Class A segment. Class B rents rose to $2.07 a square foot in the second quarter, up 6.2% from a year earlier.
The price difference between the A and B buildings is now the widest it has been since Appraisal Research has been tracking the downtown market. Mr. DeVries expects the spread to narrow in the coming months as some tenants get priced out of Class A properties.
“You are going to see some spillover from the A to the B as the price gets high,” he says.
Read more: http://www.chicagorealestatedaily.com/article/20110815/CRED02/110819921/downtown-apartment-rents-surpass-previous-boom#ixzz1V8uWqGQA
Stay up-to-date on Chicago real estate with our free, daily e-newsletter
Tuesday, June 28, 2011
Home Prices Notch Spring Bounce
June 28 2011 The Wall Street Journal
By TESS STYNES
U.S. home prices rose in April from a month earlier, the first increase in eight months, though much of the improvement reflected the start of the spring-summer home buying season, according to the S&P Case-Shiller home-price indexes.
More
Home Prices, by Metro Area
Consumer Confidence Drops
.
Home prices were lower year-to-year as the housing struggles to recover amid high unemployment, an abundance of foreclosures and tighter mortgage requirements.
The sequential growth was called "a welcome shift from recent months" by David Blitzer, chairman of S&P's index committee. However, he said, "It is much too early to tell if this is a turning point or simply due to some warmer weather."
Though 13 cities reported higher prices, six metropolitan areas hit new lows: Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa.
Housing prices had been declining this year, hitting a new post-bubble low in the first quarter. The National Association of Realtors last week said existing home sales declined 3.8% in May from April. The figure was down 15% from a year earlier when sales got a lift ahead of the deadline for the federal home buyer tax credit.
The Case-Shiller index of 10 major metropolitan areas edged up 0.8% and the 20-city index was up 0.7% in April from March. However, adjusted for seasonal factors, the sequential the 10-city figure was flat while the 20-city index was down 0.1%.
Compared with a year earlier, unadjusted prices April prices declined 3.1% for the 10 major markets while the 20-city index weakened by 4%.
Most of the major areas saw prices rise from a month earlier, with Washington seeing the biggest increase at 3%, followed by San Francisco at 1.7%. Detroit had the biggest drop, at 2.9%
By TESS STYNES
U.S. home prices rose in April from a month earlier, the first increase in eight months, though much of the improvement reflected the start of the spring-summer home buying season, according to the S&P Case-Shiller home-price indexes.
More
Home Prices, by Metro Area
Consumer Confidence Drops
.
Home prices were lower year-to-year as the housing struggles to recover amid high unemployment, an abundance of foreclosures and tighter mortgage requirements.
The sequential growth was called "a welcome shift from recent months" by David Blitzer, chairman of S&P's index committee. However, he said, "It is much too early to tell if this is a turning point or simply due to some warmer weather."
Though 13 cities reported higher prices, six metropolitan areas hit new lows: Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa.
Housing prices had been declining this year, hitting a new post-bubble low in the first quarter. The National Association of Realtors last week said existing home sales declined 3.8% in May from April. The figure was down 15% from a year earlier when sales got a lift ahead of the deadline for the federal home buyer tax credit.
The Case-Shiller index of 10 major metropolitan areas edged up 0.8% and the 20-city index was up 0.7% in April from March. However, adjusted for seasonal factors, the sequential the 10-city figure was flat while the 20-city index was down 0.1%.
Compared with a year earlier, unadjusted prices April prices declined 3.1% for the 10 major markets while the 20-city index weakened by 4%.
Most of the major areas saw prices rise from a month earlier, with Washington seeing the biggest increase at 3%, followed by San Francisco at 1.7%. Detroit had the biggest drop, at 2.9%
Thursday, June 16, 2011
Getting The Right Answers On Buying Or Selling Starts With The Right Questions
Getting The Right Answers On
Buying Or Selling Starts With
The Right Questions
Like so many of life's big decisions, the right answers about buying or selling a home derive from asking the right questions. So when people ask me if now is the right time to buy or sell, I usually recommend setting aside the immediate or short-term considerations involved in this debate and first framing the question in the context of long-term goals. After all, homeownership, as we've all been reminded, is a long-term proposition.
And long-term, it still appears to pay off for most Chicagoans. Earlier this month Crain's Chicago Business reported that, "despite double-digit drops in the bust of recent years," a number of Chicago-area neighborhoods and communities still experienced healthy price increases over the 10-year period from 2000 to 2010. Citing data from Fiserv Inc., the article reported increases in newly gentrified areas like Uptown/Andersonville (+39.3%) as well as more established neighborhoods like the Gold Coast (+33.2%). These figures might come as a surprise given the housing crisis, but they average out to between 3% and 4% per year, which is about the historical norm for annual home-price appreciation going back decades.
Another long-term factor buyers and sellers must consider is borrowing costs. No one knows exactly where interest rates will be in a few years, but a decade ago the cost of money was almost double what it is today.
Not to be overlooked are the lifestyle considerations that factor into buying, selling or standing pat. These include things like growing families, schools and retirement. Sometimes, short-term financial factors (like today's prices) outweigh these issues, but other times they don't. For example, a buyer who wants to move into a specific school district because their child is starting kindergarten may be less concerned that prices could decline for another year or two before starting to recover. Likewise, a seller nearing retirement may decide they would rather sell now and retire with less equity, than wait an indeterminate amount of time until their home equity approaches pre-crash levels.
For these individuals, now is the right time to buy or sell. I'm here to help you ask and answer the questions that will determine if the time is right for you. Please feel free to call on me anytime. And remember, I always appreciate your referrals.
Dave Straub
@properties
773.255.3180
Buying Or Selling Starts With
The Right Questions
Like so many of life's big decisions, the right answers about buying or selling a home derive from asking the right questions. So when people ask me if now is the right time to buy or sell, I usually recommend setting aside the immediate or short-term considerations involved in this debate and first framing the question in the context of long-term goals. After all, homeownership, as we've all been reminded, is a long-term proposition.
And long-term, it still appears to pay off for most Chicagoans. Earlier this month Crain's Chicago Business reported that, "despite double-digit drops in the bust of recent years," a number of Chicago-area neighborhoods and communities still experienced healthy price increases over the 10-year period from 2000 to 2010. Citing data from Fiserv Inc., the article reported increases in newly gentrified areas like Uptown/Andersonville (+39.3%) as well as more established neighborhoods like the Gold Coast (+33.2%). These figures might come as a surprise given the housing crisis, but they average out to between 3% and 4% per year, which is about the historical norm for annual home-price appreciation going back decades.
Another long-term factor buyers and sellers must consider is borrowing costs. No one knows exactly where interest rates will be in a few years, but a decade ago the cost of money was almost double what it is today.
Not to be overlooked are the lifestyle considerations that factor into buying, selling or standing pat. These include things like growing families, schools and retirement. Sometimes, short-term financial factors (like today's prices) outweigh these issues, but other times they don't. For example, a buyer who wants to move into a specific school district because their child is starting kindergarten may be less concerned that prices could decline for another year or two before starting to recover. Likewise, a seller nearing retirement may decide they would rather sell now and retire with less equity, than wait an indeterminate amount of time until their home equity approaches pre-crash levels.
For these individuals, now is the right time to buy or sell. I'm here to help you ask and answer the questions that will determine if the time is right for you. Please feel free to call on me anytime. And remember, I always appreciate your referrals.
Dave Straub
@properties
773.255.3180
Friday, May 20, 2011
Mortgage Credit's Demise Greatly Exaggerated
Mortgage Credit's Demise
Greatly Exaggerated
One can hardly read a news report about the housing market today without finding some mention of a lack of mortgage financing. True, lending standards have tightened since the days when just about anyone could get a mortgage. However, with a couple of exceptions, the average borrower with decent credit and some down-payment savings should be able to obtain a mortgage with relative ease.
In a May 10 article in U.S. News and World Report, Keith Gumbinger, VP of mortgage information web site HSH.com, said, "Borrowers have a little bit of a misconception that you can't get mortgage financing. The mentality of 'It's going to be too hard for me to get financing, so I'm not going to bother even looking,' is persistent."
In fact, it appears the pendulum has swung back to the middle after reacting harshly to the loose lending standards that led to the nation's housing crisis.
According to Chicago-based Guaranteed Rate, one of the nation's largest independent mortgage lenders, the overriding sentiment in the mortgage market today is "clean loans and clean lending", but there are definitely options for all sorts of borrowers and home-buying needs.
Following is an overview of some popular loan products and mortgage scenarios. Contact me to discuss your specific needs and to find a mortgage broker to help you meet them.
Conforming 30-Year Fixed-Rate Mortgages: Many options exist and loans are fairly easy to obtain for borrowers with good credit. Even those with imperfect credit (the minimum threshold for most lenders today is a FICO score in the mid 600s) can get a loan but will pay a higher interest rate.
Jumbo Mortgages: Lending standards on jumbo mortgages (in Illinois, these are loans above $417,000) have opened up considerably during the past six months, and rates have come down as well. Rates on some jumbo ARM products are below 4%. Most loans require a 20% down payment, but there are alternatives for borrowers putting down less. Loans over $1 million may require two appraisals.
Low Down Payment Mortgages: In addition to FHA mortgages, which allow for as little as 3.5% down, private investors have come into the market offering alternative low-down-payment programs. Qualified borrowers can purchase with only 3% down while avoiding some of the upfront fees that accompany FHA loans. Private mortgage insurance (PMI) still applies.
One group that's still encountering some challenges is self-employed borrowers. Because these borrowers can write off large amounts of income and/or business losses, their tax returns and debt-to-income (DTI) ratios don't always reflect their true borrowing power. For these individuals, a private bank or wealth manager may be able to provide a mortgage solution.
The important thing for all borrowers to remember is that the mortgage market is incredibly fluid. Rates are changing and products are coming and going.
Meanwhile, current interest rates are fantastic. So if you're considering buying or refinancing, this could be your best opportunity for years to come.
As always, I'm here to help, so don't hesitate to call. And please keep me in mind for referrals. I appreciate your business.
Source: Guaranteed Rate
Dave Straub @properties 773.255.3180
Greatly Exaggerated
One can hardly read a news report about the housing market today without finding some mention of a lack of mortgage financing. True, lending standards have tightened since the days when just about anyone could get a mortgage. However, with a couple of exceptions, the average borrower with decent credit and some down-payment savings should be able to obtain a mortgage with relative ease.
In a May 10 article in U.S. News and World Report, Keith Gumbinger, VP of mortgage information web site HSH.com, said, "Borrowers have a little bit of a misconception that you can't get mortgage financing. The mentality of 'It's going to be too hard for me to get financing, so I'm not going to bother even looking,' is persistent."
In fact, it appears the pendulum has swung back to the middle after reacting harshly to the loose lending standards that led to the nation's housing crisis.
According to Chicago-based Guaranteed Rate, one of the nation's largest independent mortgage lenders, the overriding sentiment in the mortgage market today is "clean loans and clean lending", but there are definitely options for all sorts of borrowers and home-buying needs.
Following is an overview of some popular loan products and mortgage scenarios. Contact me to discuss your specific needs and to find a mortgage broker to help you meet them.
Conforming 30-Year Fixed-Rate Mortgages: Many options exist and loans are fairly easy to obtain for borrowers with good credit. Even those with imperfect credit (the minimum threshold for most lenders today is a FICO score in the mid 600s) can get a loan but will pay a higher interest rate.
Jumbo Mortgages: Lending standards on jumbo mortgages (in Illinois, these are loans above $417,000) have opened up considerably during the past six months, and rates have come down as well. Rates on some jumbo ARM products are below 4%. Most loans require a 20% down payment, but there are alternatives for borrowers putting down less. Loans over $1 million may require two appraisals.
Low Down Payment Mortgages: In addition to FHA mortgages, which allow for as little as 3.5% down, private investors have come into the market offering alternative low-down-payment programs. Qualified borrowers can purchase with only 3% down while avoiding some of the upfront fees that accompany FHA loans. Private mortgage insurance (PMI) still applies.
One group that's still encountering some challenges is self-employed borrowers. Because these borrowers can write off large amounts of income and/or business losses, their tax returns and debt-to-income (DTI) ratios don't always reflect their true borrowing power. For these individuals, a private bank or wealth manager may be able to provide a mortgage solution.
The important thing for all borrowers to remember is that the mortgage market is incredibly fluid. Rates are changing and products are coming and going.
Meanwhile, current interest rates are fantastic. So if you're considering buying or refinancing, this could be your best opportunity for years to come.
As always, I'm here to help, so don't hesitate to call. And please keep me in mind for referrals. I appreciate your business.
Source: Guaranteed Rate
Dave Straub @properties 773.255.3180
Sunday, April 17, 2011
@properties - More agents than any other firm who completed at least one million-dollar transaction
For 2010 in the city of Chicago, @properties had more agents than any other firm who completed at least one million-dollar transaction. I am very proud to be one of those agents. Here are the stats, this is for the city only:
@properties = 80
Prudential= 74
B&W = 56
CB = 55
K&S = 55
Jameson = 23
Dreamtown = 17
What this means is that @properties has the largest internal network of luxury sales agents, so we will get your home in front of more agents working with more million-dollar buyers than any other brokerage firm. The reason we do so well in the luxury market is because we have the best high-end marketing, exposure and agents.
@properties = 80
Prudential= 74
B&W = 56
CB = 55
K&S = 55
Jameson = 23
Dreamtown = 17
What this means is that @properties has the largest internal network of luxury sales agents, so we will get your home in front of more agents working with more million-dollar buyers than any other brokerage firm. The reason we do so well in the luxury market is because we have the best high-end marketing, exposure and agents.
Friday, April 15, 2011
Taking Inventory: Supply Picture Slowly Improving
Taking Inventory:
Supply Picture Slowly Improving
One closely watched gauge of the local real estate market is Months Supply of Inventory (MSI).
MSI forecasts how long it would take to sell off the remaining supply of active listings given the current pace of sales. As a general rule of thumb, a balanced market, where supply and demand is in equilibrium, has about 6 months worth of inventory. But throughout the real estate downturn, MSI has been well above that benchmark.
Lately, however, MSI has become much more palatable. In fact, in the city of Chicago MSI is at a two-year low as of the end of March. While some areas do indeed have an oversupply of homes for sale, other neighborhoods show a virtual balance between supply and demand.
For example, North Center, Lincoln Square, Forest Glen, Rogers Park and the Near West Side, which includes the West Loop, all had around 6 months worth of inventory in March. Lincoln Park, Lakeview, Edgewater and West Town, which includes Wicker Park, all had less than 8 months worth of supply. The citywide average in March was 7.1 months - 50% below March 2009 levels.
Anecdotally, we are seeing more multiple offer situations. New listings that are priced correctly and in good condition are being snapped up quickly. That has not been the case over the last two years. The perception of an endless supply of flawless, inexpensive homes is far from today's reality.
MSI fluctuates seasonally and, historically, is at its lowest during the spring. In addition, factors such as shadow inventory (homes that are in foreclosure but have not yet been sold) are keeping optimism in check. However, it should be noted that this spring's inventory levels have been achieved without the benefit of last year's housing tax credit. Furthermore, in the city condo market, large chunks of new-construction supply have been taken off the market by investors acquiring units in bulk to rent out as apartments. In the past 12 months, almost 1,000 new condos have been acquired in such a manner - more than the total number of individual new-construction sales for all of 2010.
The upshot is that slowly but surely things are getting better. Buyers are still in a strong position but can't snooze on a great listing. Sellers still may be dealing with some disappointment on the pricing front, but if your home is priced and presented right, the buyers are out there.
Of course, every neighborhood, price point and housing type is subject to a unique set of circumstances. For an in-depth analysis of inventory relative to your property sale or search, contact me anytime. And remember I always appreciate your referrals.
Sources: Broker Metrics for MSI statistics. Appraisal Research Counselors for new-construction condominium sales.
Supply Picture Slowly Improving
One closely watched gauge of the local real estate market is Months Supply of Inventory (MSI).
MSI forecasts how long it would take to sell off the remaining supply of active listings given the current pace of sales. As a general rule of thumb, a balanced market, where supply and demand is in equilibrium, has about 6 months worth of inventory. But throughout the real estate downturn, MSI has been well above that benchmark.
Lately, however, MSI has become much more palatable. In fact, in the city of Chicago MSI is at a two-year low as of the end of March. While some areas do indeed have an oversupply of homes for sale, other neighborhoods show a virtual balance between supply and demand.
For example, North Center, Lincoln Square, Forest Glen, Rogers Park and the Near West Side, which includes the West Loop, all had around 6 months worth of inventory in March. Lincoln Park, Lakeview, Edgewater and West Town, which includes Wicker Park, all had less than 8 months worth of supply. The citywide average in March was 7.1 months - 50% below March 2009 levels.
Anecdotally, we are seeing more multiple offer situations. New listings that are priced correctly and in good condition are being snapped up quickly. That has not been the case over the last two years. The perception of an endless supply of flawless, inexpensive homes is far from today's reality.
MSI fluctuates seasonally and, historically, is at its lowest during the spring. In addition, factors such as shadow inventory (homes that are in foreclosure but have not yet been sold) are keeping optimism in check. However, it should be noted that this spring's inventory levels have been achieved without the benefit of last year's housing tax credit. Furthermore, in the city condo market, large chunks of new-construction supply have been taken off the market by investors acquiring units in bulk to rent out as apartments. In the past 12 months, almost 1,000 new condos have been acquired in such a manner - more than the total number of individual new-construction sales for all of 2010.
The upshot is that slowly but surely things are getting better. Buyers are still in a strong position but can't snooze on a great listing. Sellers still may be dealing with some disappointment on the pricing front, but if your home is priced and presented right, the buyers are out there.
Of course, every neighborhood, price point and housing type is subject to a unique set of circumstances. For an in-depth analysis of inventory relative to your property sale or search, contact me anytime. And remember I always appreciate your referrals.
Sources: Broker Metrics for MSI statistics. Appraisal Research Counselors for new-construction condominium sales.
Friday, March 18, 2011
The Only Real Estate Website You'll Ever Need
The Only Real Estate Website
You'll Ever Need
Have you been on atproperties.com lately? If it's been a while, you might be amazed at all of the useful features you'll find on our website.
First and foremost, atproperties.com is the #1 place to search for a new home in Chicagoland. Our powerful search engine displays EVERY property in the local MLS with detailed descriptions and tons of photos. You can search by neighborhood, city or zip, and if you're looking within a very specific area you can even draw your own search using our innovative map tool. Save time by saving your searches and favorite properties, and set alerts to instantly find out about new listings and price changes.
In our Neighborhoods section you'll find information and market trends, including sales data, on more than 300 Chicago-area communities. And atproperties.com is also the best place to search for new construction in and around Chicago. Many quality developments are offering attractive discounts and special incentives making now a great time to buy new.
If you're getting ready to sell, learn how @properties achieves better results for sellers with the most comprehensive marketing programs in the industry. Click on the Seller's Presentation and see everything we do to help you obtain the highest possible selling price in the shortest amount of time.
Atproperties.com is great for homebuyers and sellers, but it's also a useful resource for anyone looking for community-level information in Chicagoland. Need to find the closest movie theater, day care center or grocery store? Use the View Amenities feature on our maps to locate them in any neighborhood. You can also find restaurant reviews powered by Yelp and school ratings powered by Education.com.
We designed atproperties.com to be powerful, functional and intuitive. And we're constantly working to make it even better. That's why we're one of only a handful of brokerage firms in the country to earn the prestigious Leading Real Estate Companies of the World® Website Quality Certification two years in a row.
Please let me know if you would like help getting started on atproperties.com. I'm more than happy to give you a tour of this great resource. And remember, I always appreciate your referrals.
Dave Straub
773.255.3180
You'll Ever Need
Have you been on atproperties.com lately? If it's been a while, you might be amazed at all of the useful features you'll find on our website.
First and foremost, atproperties.com is the #1 place to search for a new home in Chicagoland. Our powerful search engine displays EVERY property in the local MLS with detailed descriptions and tons of photos. You can search by neighborhood, city or zip, and if you're looking within a very specific area you can even draw your own search using our innovative map tool. Save time by saving your searches and favorite properties, and set alerts to instantly find out about new listings and price changes.
In our Neighborhoods section you'll find information and market trends, including sales data, on more than 300 Chicago-area communities. And atproperties.com is also the best place to search for new construction in and around Chicago. Many quality developments are offering attractive discounts and special incentives making now a great time to buy new.
If you're getting ready to sell, learn how @properties achieves better results for sellers with the most comprehensive marketing programs in the industry. Click on the Seller's Presentation and see everything we do to help you obtain the highest possible selling price in the shortest amount of time.
Atproperties.com is great for homebuyers and sellers, but it's also a useful resource for anyone looking for community-level information in Chicagoland. Need to find the closest movie theater, day care center or grocery store? Use the View Amenities feature on our maps to locate them in any neighborhood. You can also find restaurant reviews powered by Yelp and school ratings powered by Education.com.
We designed atproperties.com to be powerful, functional and intuitive. And we're constantly working to make it even better. That's why we're one of only a handful of brokerage firms in the country to earn the prestigious Leading Real Estate Companies of the World® Website Quality Certification two years in a row.
Please let me know if you would like help getting started on atproperties.com. I'm more than happy to give you a tour of this great resource. And remember, I always appreciate your referrals.
Dave Straub
773.255.3180
Saturday, February 26, 2011
Downtown Luxury Market: On the Rebound in 2011?
Downtown Luxury Market:
On the Rebound in 2011?
It's well known that Chicago lags the coasts when it comes to real estate trends, so an article in last month's New York Times about the strong performance of Manhattan's luxury market in 2010 is reason to be hopeful about our prospects in the Windy City. But local market data is still a mixed bag.
Months Supply of Inventory fell 30%, year over year, from January 2010 to January 2011 (a positive sign); however, we have yet to see the broad price recovery everyone is hoping for. The median sales price for $1,000,000+ homes in the city is down 4.8% year over year. This underscores the importance of a luxury marketing program that will help your home stand out in a crowd.
At @properties, we leverage print and online advertising, direct mail, e-mail marketing, high-visibility signage, broker marketing and more to sell your home. We also feature luxury listings front and center on the @properties website in our Luxury Collection Online Magazine. This digital publication features dozens of pages of spectacular homes - each with professional photography and a link to detailed listing information on the @properties web site. See the latest edition now at www.atproperties.com.
Did You Know?
@properties finished 2010 with the highest overall market share in the city of Chicago (our second consecutive year in the top spot), but did you know that @properties was also #1 in luxury sales?
#1 in Market Share: 13.04%
#1 in Luxury Sales: 13.98%
#1 in Selling Price to Original Listing Price: 94.3%
#1 in Fastest Average Market Time: 142 Days
For more information on our luxury brokerage services for buyers and sellers, please contact me. Also, please keep me in mind if someone you know is buying or selling a home. I appreciate your business and referrals.
Source: MSI, market share and market performance statistics supplied by BrokerMetrics based on sales data from Midwest Real Estate Data LLC, 1/1/10 - 12/31/10 and 1/1/10 vs. 1/1/11.
On the Rebound in 2011?
It's well known that Chicago lags the coasts when it comes to real estate trends, so an article in last month's New York Times about the strong performance of Manhattan's luxury market in 2010 is reason to be hopeful about our prospects in the Windy City. But local market data is still a mixed bag.
Months Supply of Inventory fell 30%, year over year, from January 2010 to January 2011 (a positive sign); however, we have yet to see the broad price recovery everyone is hoping for. The median sales price for $1,000,000+ homes in the city is down 4.8% year over year. This underscores the importance of a luxury marketing program that will help your home stand out in a crowd.
At @properties, we leverage print and online advertising, direct mail, e-mail marketing, high-visibility signage, broker marketing and more to sell your home. We also feature luxury listings front and center on the @properties website in our Luxury Collection Online Magazine. This digital publication features dozens of pages of spectacular homes - each with professional photography and a link to detailed listing information on the @properties web site. See the latest edition now at www.atproperties.com.
Did You Know?
@properties finished 2010 with the highest overall market share in the city of Chicago (our second consecutive year in the top spot), but did you know that @properties was also #1 in luxury sales?
#1 in Market Share: 13.04%
#1 in Luxury Sales: 13.98%
#1 in Selling Price to Original Listing Price: 94.3%
#1 in Fastest Average Market Time: 142 Days
For more information on our luxury brokerage services for buyers and sellers, please contact me. Also, please keep me in mind if someone you know is buying or selling a home. I appreciate your business and referrals.
Source: MSI, market share and market performance statistics supplied by BrokerMetrics based on sales data from Midwest Real Estate Data LLC, 1/1/10 - 12/31/10 and 1/1/10 vs. 1/1/11.
Monday, February 21, 2011
Home Sales in Metro Chicago Real Estate Market Showed Resilience During January
Home sales in the seven-county metropolitan Chicago real estate market showed encouraging resilience in January even though total home sales slipped 3.7 percent below the level recorded in the same month of 2010, according to an analysis by RE/MAX.
Looking at data on home sales recorded by Midwest Real Estate Data, LLC, the regional multiple listing service, RE/MAX reports that January home sales totaled 3,834 units, down from 3,980 units in January 2010.
“January sales numbers are usually the lowest of any month of the year, but they can be a harbinger of what is to come as the housing market moves into the busy spring season,” explains Jim Merrion, regional director of the RE/MAX Northern Illinois real estate network. “A year ago, the spring market was quite active, helped greatly by the federal tax credit offered to homebuyers. This year there is no tax credit, yet January sales were at a very comparable level to last year’s. That suggests buyers are returning to the market and that home buying activity this spring has more upside potential than many expert observers currently believe.”
There were 1,847 distressed sales across the metro area in January, compared to 1,855 a year earlier and 2,206 in the prior month. Foreclosures represented 33 percent of all sales, while short sales accounted for 15 percent.
Sales of attached and detached homes performed quite similarly in January, both coming in 3.7 percent lower than the prior January. However, in terms of prices and the time required to sell a home, the differences between the attached and detached markets were more pronounced.
For detached homes, the median price (where half of all homes sold cost more and half cost less) rose to $175,000 in January, up from $172,500 a year earlier, and the average time those homes spent on the market fell from 174 days in 2010 to 171 days this year. For attached homes, the picture was quite different. The median price fell to $133,400 from $180,000 a year ago, a 26 percent decline. The average time required to sell one of those attached homes increased to 188 days from 166 days.
“We don’t want to read too much into the fact that January home sales were 26 percent lower than in December,” Merrion says. “A substantial December-to-January decrease has been the pattern in recent years. Even when the market was just about at its peak, January sales in 2006 were 31 percent lower than December sales in 2005, and the smallest December-to-January sales decline since then was 20 percent in 2006-2007.”
Although January sales activity in the metro area as a whole was quite similar to that seen a year earlier, sales levels varied significantly in local markets. Three of the seven metro counties, DuPage, Kane and Lake, saw sales increase, while four counties, as well as the City of Chicago, recorded decreased sales.
DuPage County sales were up 21.8 percent to 453 units, the largest gain reported, while Kendall County sales fell 23.5 percent to 62 units, and sales dipped 15.4 percent in Chicago, with 1,066 homes changing hands. Results for the other counties were as follows: Cook 2,300 units (-8.1 percent), Kane 256 units (+6.7 percent), Lake 340 units (+4.3 percent), McHenry 140 units (-9.7 percent) and Will 283 units (-6.3 percent).
-Chicago Agent 18 February 2011
Looking at data on home sales recorded by Midwest Real Estate Data, LLC, the regional multiple listing service, RE/MAX reports that January home sales totaled 3,834 units, down from 3,980 units in January 2010.
“January sales numbers are usually the lowest of any month of the year, but they can be a harbinger of what is to come as the housing market moves into the busy spring season,” explains Jim Merrion, regional director of the RE/MAX Northern Illinois real estate network. “A year ago, the spring market was quite active, helped greatly by the federal tax credit offered to homebuyers. This year there is no tax credit, yet January sales were at a very comparable level to last year’s. That suggests buyers are returning to the market and that home buying activity this spring has more upside potential than many expert observers currently believe.”
There were 1,847 distressed sales across the metro area in January, compared to 1,855 a year earlier and 2,206 in the prior month. Foreclosures represented 33 percent of all sales, while short sales accounted for 15 percent.
Sales of attached and detached homes performed quite similarly in January, both coming in 3.7 percent lower than the prior January. However, in terms of prices and the time required to sell a home, the differences between the attached and detached markets were more pronounced.
For detached homes, the median price (where half of all homes sold cost more and half cost less) rose to $175,000 in January, up from $172,500 a year earlier, and the average time those homes spent on the market fell from 174 days in 2010 to 171 days this year. For attached homes, the picture was quite different. The median price fell to $133,400 from $180,000 a year ago, a 26 percent decline. The average time required to sell one of those attached homes increased to 188 days from 166 days.
“We don’t want to read too much into the fact that January home sales were 26 percent lower than in December,” Merrion says. “A substantial December-to-January decrease has been the pattern in recent years. Even when the market was just about at its peak, January sales in 2006 were 31 percent lower than December sales in 2005, and the smallest December-to-January sales decline since then was 20 percent in 2006-2007.”
Although January sales activity in the metro area as a whole was quite similar to that seen a year earlier, sales levels varied significantly in local markets. Three of the seven metro counties, DuPage, Kane and Lake, saw sales increase, while four counties, as well as the City of Chicago, recorded decreased sales.
DuPage County sales were up 21.8 percent to 453 units, the largest gain reported, while Kendall County sales fell 23.5 percent to 62 units, and sales dipped 15.4 percent in Chicago, with 1,066 homes changing hands. Results for the other counties were as follows: Cook 2,300 units (-8.1 percent), Kane 256 units (+6.7 percent), Lake 340 units (+4.3 percent), McHenry 140 units (-9.7 percent) and Will 283 units (-6.3 percent).
-Chicago Agent 18 February 2011
Saturday, February 5, 2011
@properties' Market Reports
Stay Informed In 2011
With @properties' Market Reports
With record low interest rates and record high affordability, 2010 was a banner year for just about anyone who bought a home. The favorable buying conditions were reflected in overall sales numbers for 2010, which showed slight improvement versus 2009. Total sales volume was up and market times were down for @properties' principal market areas of the city and North Shore (see charts below).
Heading into 2011, buyers are still in the driver's seat but will want to keep an eye on interest rates, which are expected to top 5% before long. Locking in a rate below 5% on a 15- or 30-year fixed-rate mortgage, or below 4% on an ARM, is a phenomenal opportunity given current home prices. For sellers, getting the job done in 2011 will once again require an in-depth understanding of hyper-local market conditions and price trends, as well as a comprehensive sales and marketing plan.
A great way to keep tabs on the market in 2011 is with @properties' Market Reports. The reports instantly generate real time market stats for almost every neighborhood and village in the Chicagoland area. You can drill down to view market stats for specific housing types and sizes, and observe trends over 3, 6 or 12 months. While on the site, search Chicagoland's most complete property database, and sign up to receive New Listing alerts and Status Updates for properties you want to track.
If you're considering a real estate transaction, now is the perfect time for us to sit down and discuss potential buying or selling strategies. Contact me at your earliest convenience, and please keep me in mind if you know of someone who is looking to buy or sell property this year.
City of Chicago Market Comparison: 2010 vs. 2009 Totals
City of Chicago Total $ Volume Days on Market Average Sales Price
2010 $5,619,459,483.00 150 $284,948.00
2009 $5,587,165,396.00 156 $279,904.00
2010 vs. 2009 $32,294,087.00 -6 $5,044.00
% Comparison 0.6% -3.8% 1.8%
North Shore Market Comparison: 2010 vs. 2009 Totals
North Shore Total $ Volume Days on Market Average Sales Price
2010 $1,502,902,690.00 196 $656,576.00
2009 $1,183,205,540.00 207 $655,516.00
2010 vs. 2009 $319,697,150.00 -11 $1,060.00
% Comparison 27.0% -5.3% 0.2%
Source: Broker Metrics. Data supplied through MRED LLC, based on closed transactions for detached and attached single-family homes and parking. North Shore includes Evanston, Wilmette, Kenilworth, Winnetka, Glencoe, Highland Park, Lake Forest and Lake Bluff. 1/1/10 - 12/31/10 vs. 1/1/09 - 12/31/09.
With @properties' Market Reports
With record low interest rates and record high affordability, 2010 was a banner year for just about anyone who bought a home. The favorable buying conditions were reflected in overall sales numbers for 2010, which showed slight improvement versus 2009. Total sales volume was up and market times were down for @properties' principal market areas of the city and North Shore (see charts below).
Heading into 2011, buyers are still in the driver's seat but will want to keep an eye on interest rates, which are expected to top 5% before long. Locking in a rate below 5% on a 15- or 30-year fixed-rate mortgage, or below 4% on an ARM, is a phenomenal opportunity given current home prices. For sellers, getting the job done in 2011 will once again require an in-depth understanding of hyper-local market conditions and price trends, as well as a comprehensive sales and marketing plan.
A great way to keep tabs on the market in 2011 is with @properties' Market Reports. The reports instantly generate real time market stats for almost every neighborhood and village in the Chicagoland area. You can drill down to view market stats for specific housing types and sizes, and observe trends over 3, 6 or 12 months. While on the site, search Chicagoland's most complete property database, and sign up to receive New Listing alerts and Status Updates for properties you want to track.
If you're considering a real estate transaction, now is the perfect time for us to sit down and discuss potential buying or selling strategies. Contact me at your earliest convenience, and please keep me in mind if you know of someone who is looking to buy or sell property this year.
City of Chicago Market Comparison: 2010 vs. 2009 Totals
City of Chicago Total $ Volume Days on Market Average Sales Price
2010 $5,619,459,483.00 150 $284,948.00
2009 $5,587,165,396.00 156 $279,904.00
2010 vs. 2009 $32,294,087.00 -6 $5,044.00
% Comparison 0.6% -3.8% 1.8%
North Shore Market Comparison: 2010 vs. 2009 Totals
North Shore Total $ Volume Days on Market Average Sales Price
2010 $1,502,902,690.00 196 $656,576.00
2009 $1,183,205,540.00 207 $655,516.00
2010 vs. 2009 $319,697,150.00 -11 $1,060.00
% Comparison 27.0% -5.3% 0.2%
Source: Broker Metrics. Data supplied through MRED LLC, based on closed transactions for detached and attached single-family homes and parking. North Shore includes Evanston, Wilmette, Kenilworth, Winnetka, Glencoe, Highland Park, Lake Forest and Lake Bluff. 1/1/10 - 12/31/10 vs. 1/1/09 - 12/31/09.
Saturday, January 8, 2011
owning vs. renting
Homeowners still confident in owning vs. renting, says Fannie Mae
Amid a torrent of negative stories on housing, it is worth pointing out that housing has a function other than as an investment: namely, as a contributor to quality of life.
Fannie Mae, admittedly not an unbiased source, recently released a four-part survey on the attitudes of owning versus renting. Among the findings:
84% of homeowners with negative equity believe they are better off owning than renting.
80% of the general population, and 65% of renters, say they would prefer to live in a neighborhood where most people own.
In responding to the question, “What is the best reason to buy a home?”, the most popular answer was for lifestyle considerations, not financial benefits.
A large majority of owners believe they are better off owning a home, whereas renters are divided between owning and renting.
This is a useful reminder that not all buyers will be into the horse race of housing data that can sometimes preoccupy the news media.
Fannie Mae Survey Graphs: http://www.lakeshoreanalytics.com/yo/jan11/fan_fred_graphic.PNG
from yo Chicago by jeff baird on 1/5/11
Amid a torrent of negative stories on housing, it is worth pointing out that housing has a function other than as an investment: namely, as a contributor to quality of life.
Fannie Mae, admittedly not an unbiased source, recently released a four-part survey on the attitudes of owning versus renting. Among the findings:
84% of homeowners with negative equity believe they are better off owning than renting.
80% of the general population, and 65% of renters, say they would prefer to live in a neighborhood where most people own.
In responding to the question, “What is the best reason to buy a home?”, the most popular answer was for lifestyle considerations, not financial benefits.
A large majority of owners believe they are better off owning a home, whereas renters are divided between owning and renting.
This is a useful reminder that not all buyers will be into the horse race of housing data that can sometimes preoccupy the news media.
Fannie Mae Survey Graphs: http://www.lakeshoreanalytics.com/yo/jan11/fan_fred_graphic.PNG
from yo Chicago by jeff baird on 1/5/11
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